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Deal Details
Private Loan Type
Commercial Property Value Add
Approx. Funding Date
02/15/2023
Property Type
Property City
Kettering
Property State
OH
Loan Term (months)
12
Lien Type
1st Mortgage
Payment Type
Interest Only
Purchase Price
$100,000
Loan-to-Purchase Price
65%
Borrower's Contribution to Purchase
35%
Source of Borrower's Contribution
Cash
Location Type
Suburban
Property Condition
Good
Occupancy at Closing
Tenant-Occupied
Number of Units
3
Building Square Footage
3,875
Borrower's Plan
Rehab and Rent
Exit Strategy
Refinance
Borrower Credit Rating
Average
Interest Rate
13%
Origination Points
3%
Deal Summary
Gelt Financial, a direct CRE lender, funded a $107,250 1st lien position bridge loan for the acquisition of a 3-unit retail building in Kettering, Ohio. We funded 65% of the $165,000 purchase price, while the Borrower contributed 35% cash at closing. The Borrower plans to rehab the property. They have an extensive background in real estate flips and rentals which gave us confidence in their ability to improve this property and successfully exit our loan. The 3,875-square-foot subject property was built in 1965 and has 17 parking spaces. It was 66% tenant-occupied at closing. Two of the three units had annual leases in place. The Borrower plans to raise those rents to market. The entire property was in decent condition but needed a light rehab in order to lease up the remaining vacant unit. The Borrower had average credit. They plan to lease up and refinance with a conventional loan. The interest rate was 13% floating and we charged 3% origination points. The loan term was set at 12 months. This retail purchase bridge loan was funded in February 2023.
Funded By
Gelt Financial, LLC
Creative Private Financing for Commercial Real Estate since 1989