Deal Details
Private Loan Type
Equity Cash Out
Approx. Funding Date
10/23/2023
Property Type
Property City
Johnson City
Property State
TN
Loan Term (months)
12
Lien Type
1st Mortgage
Payment Type
Interest Only
Property Value
$2,000,000
Loan-to-Value
50%
Location Type
Suburban
Property Condition
Excellent
Occupancy at Closing
Tenant-Occupied
Number of Units
1
Borrower's Plan
Continue Rental
Exit Strategy
Refinance
Interest Rate
12%
Origination Points
3%
Deal Summary
Gelt Financial, a direct CRE lender, funded a $1,000,000 1st lien position equity cash-out loan secured by a NNN retail property in Johnson City, Tennessee. The property was occupied by Wendy’s with a long-term lease. We estimated the value to be $2,000,000 so our loan-to-value was 50%. The Borrower owned the property free & clear, so there were no mortgages or liens to pay off. All the loan proceeds went directly to the owner’s bank account. The Borrower needed access to capital fast and we provided the first mortgage without requiring a formal appraisal. And we closed the loan in just one week. Johnson City is a small town in the Northeastern part of Tennessee, close to the Virginia border. The subject property was in excellent condition and tenant-occupied at closing. The Borrower plans to continue leasing the property and will eventually refinance as an exit strategy. The interest rate was 12%, and we charged 3% origination points. The loan term was set at 12 months. This CRE bridge loan was funded in October 2023.