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Deal Details
Private Loan Type
Purchase
Approx. Funding Date
02/24/2023
Property Type
Property City
Atlanta
Property State
GA
Loan Term (months)
12
Lien Type
1st Mortgage
Payment Type
Interest Only
Purchase Price
$3,500,000
Loan-to-Purchase Price
71%
Borrower's Contribution to Purchase
29%
Source of Borrower's Contribution
Cash
Location Type
Suburban
Property Condition
Good
Number of Units
120
Borrower's Plan
Long-Term Rental
Exit Strategy
Conventional Loan
Borrower Credit Rating
Excellent
Deal Summary
Sherpa Capital Group, a direct private lending firm based in Chicago, funded a $2,500,000 1st lien position bridge loan for the acquisition of a 120-unit hotel in suburban Atlanta, GA. We funded 71% of the $3,500,000 purchase price, while the Borrower contributed 29% cash at closing. The timing from Term Sheet to Close was under 3 weeks. The Sponsor plans to convert the hotel into short-term rentals and workforce housing, which will address the growing demand for affordable housing in the area. We are not funding any renovations for the conversion. The subject property was in good condition. The Borrower had excellent credit. They plan to continue leasing the property and eventually refinance with a conventional loan as an exit strategy. The loan term was set at 12 months. This CRE bridge loan was funded in February 2023.
Funded By
Sherpa Capital Group
Entrepreneurial Private Lender for All Types of Commercial Properties
Dealmakers
Rahul Shah
Managing Principal