Private Money Loan for Commercial Retail Building in Bakersfield, California

Funded by Karpe Real Estate Center

$900,000

Deal Details

Private Loan Type

Purchase

Approx. Funding Date

03/01/2023

Property Type
Mixed-Use
Retail
Property City

Bakersfield

Property State

CA

Loan Term (months)

60

Lien Type

1st and 2nd

Payment Type

Amortized

Purchase Price

$1,200,000

Loan-to-Purchase Price

75%

Borrower's Contribution to Purchase

25%

Source of Borrower's Contribution

Cash

Term

5 years

Rate Type

Fixed

Property Neighborhood

Downtown

Location Type

Suburban

Property Condition

Good

Occupancy at Closing

Vacant

Number of Units

2

Building Square Footage

8,000

Lot Square Footage

15,000

Borrower's Plan

Lease Up Vacant Units

Exit Strategy

Refinance

Borrower Credit Rating

Excellent

Interest Rate

9.90%

Origination Points

2.5%

Broker Commission

$22,500

Deal Highlights

Quick Close.
Long Term.
Repeat Borrower.

Deal Summary

Karpe Real Estate Center, a direct private lender for Central California real estate, funded a $900,000 1st and 2nd lien position bridge loan for the acquisition of a 2-unit commercial rental building in Downtown Bakersfield, CA. We funded 75% of the $1,200,000 purchase price, while the Borrower contributed 25% cash at closing. The Borrower owned the parking area adjacent to this building and had an existing mortgage on that parcel. Karpe worked with the Borrower to go in 2nd position on the parking area and 1st position on the building. The equity in the parking area was used as additional collateral to make the deal meet our 70% total loan-to-value. The loan-to-value on the purchase of the building only was 75%. The deal included a 6-month prepay penalty of 1% of the loan amount. The subject property was in good condition and vacant at closing. It was approximately 8,000 square feet set in a 15,000-square-foot lot. The Borrower had excellent credit. They plan to lease up vacant units and eventually refinance as an exit strategy. The interest rate was fixed at 9.90% with amortized payments. We charged 3% origination points and the broker earned a $22,500 commission. The loan term was set at 5 years. This CRE bridge loan was funded in March 2023.

Funded By

Karpe Real Estate Center

Private Lending for Central California Real Estate - Bakersfield, Fresno, Central Valley, Sacramento | Est. 1926

Dealmakers

Stephen Hale

Broker-Associate

CA DRE Lic. 01997969