Purchase Bridge Loan for Newly Built Luxury Condo in Edgewater, Miami

Sherpa Capital Group, a direct private lending firm based in Chicago, funded a $2,050,000 1st lien position bridge loan for the acquisition of a luxury condominium in the Edgewater neighborhood of Miami, near the Design District and Wynwood. We funded 64% of the $3,200,000 purchase price, while the Borrower contributed 36% cash at closing. The Borrowers are two private equity individual investors who signed a pre-construction contract 2-3 years before the building’s completion, and there were numerous construction delays. Their traditional lender was not able to provide financing in a timely manner. They had requested several extensions from the seller and were at risk of losing a significant non-refundable deposit from the pre-construction contract. Sherpa Capital Group was able to provide financing to the investors and close within 5 business days of the executed term sheet. They plan to sell the property as prices have gone up significantly in that market. If for some reason, they don’t sell, plan B would be to rent and refinance. The Borrower had excellent credit. The condo unit is approximately 3,000 square feet, located on one of the higher floors in the building. The interest rate was 15%, and the loan term was set at 6 months. This purchase bridge loan was funded in August 2023.