Bridge Loan for Daycare Acquisition in Philadelphia

Deal Details

Private Loan Type

Purchase

Approx. Funding Date

12/01/2023

Property Type

Child Day Care

Retail

Property City

Philadelphia

Property State

Loan Term (months)

Lien Type

1st Mortgage

Payment Type

Interest Only

Purchase Price

$540,000

Loan-to-Purchase Price

52%

Borrower's Contribution to Purchase

48%

Source of Borrower's Contribution

Cash

Location Type

Urban

Property Condition

Excellent

Occupancy at Closing

Vacant

Number of Units

Building Square Footage

2,424

Borrower's Plan

Continue Occupancy

Exit Strategy

Refinance

Borrower Credit Rating

Good

Interest Rate

13%

Origination Points

Deal Highlights

52% LTV Purchase Loan for owner-occupied daycare.

Vacant daycare in Northeast Philadelphia.

Borrower owns many businesses with positive cash flow.

Deal Summary

Gelt Financial, a direct CRE lender, funded a $280,000 1st lien position purchase bridge loan for the acquisition of a vacant daycare in Philadelphia, PA. We funded 52% of the $540,000 purchase price, while the Borrower contributed 48% cash at closing. The Borrower approached Gelt Financial because they needed to finance the purchase of their new daycare business. The Borrower owns similar businesses and performs very well. The subject property is approximately 2,424 square feet, including 3 bathrooms, divided rooms, and a fenced playground. It was built in 1975 and was in excellent condition. The Borrower had good credit. They plan to continue occupying the property and eventually refinance as an exit strategy. The interest rate was 13% floating and we charged 3% origination points. The loan term was set at 12 months. This CRE bridge loan was funded in December 2023.