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Deal Details
Private Loan Type
Commercial Property Value Add
Approx. Funding Date
04/14/2023
Property Type
Property City
Clarks Summit
Property State
PA
Loan Term (months)
12
Lien Type
1st Mortgage
Payment Type
Interest Only
Purchase Price
$1,600,000
Loan-to-Purchase Price
80%
Borrower's Contribution to Purchase
20%
Source of Borrower's Contribution
Cash
Renovation Budget
$350,000
Renovation Budget Funded
100%
Borrower's Contribution to Budget
0%
After-Repair Value
$2,600,000
Loan-to-After-Repair Value
58%
Renovation Project Scope
Light Rehab
Property Condition
Good
Number of Units
20
Building Square Footage
23,000
Borrower's Plan
Rehab and Rent
Exit Strategy
Refinance
Borrower Credit Rating
Good
Interest Rate
11%
Origination Points
1%
Broker Commission
$15,000
Deal Summary
Stormfield Capital, a technology-enabled direct portfolio lender, funded a $1,500,000 1st lien position acquisition bridge loan in Clarks Summit, a relatively affluent suburb of Scranton, PA. The loan is secured by a 100% occupied, 20-unit multifamily property with a separate retail unit. We funded 100% of the $350,000 renovation budget and 80% of the $1,600,000 purchase price, while the Borrower contributed 20% cash at closing. The after-repair value was $2,600,000 so our loan-to-after-repair value was 58%. The loan enabled the Sponsor to conduct rolling renovations of the units as they turn. The Sponsor is an active local real estate investor, having flipped 40+ properties in the past 5 years, and owning a current portfolio of over 50 single-family rental homes in Northeast Pennsylvania. The subject property is approximately 23,000 square feet. The Borrower plans to continue leasing the property and eventually refinance as an exit strategy. The interest rate was 11%. We charged a 1% origination point and the broker earned a $15,000 commission. The loan term was set at 12 months. This CRE bridge loan was funded in April 2023.
Funded By
Stormfield Capital, LLC
Direct Balance-Sheet Lender for Investment Properties
Dealmakers
Wesley Carpenter
Managing Partner
Adam Czarnecki
Investment Associate