Deal Details
Private Loan Type
Purchase
Approx. Funding Date
03/01/2023
Property Type
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 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.
Dealmakers
Stephen Hale
Broker-Associate
CA DRE Lic. 01997969