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Deal Details
Private Loan Type
Purchase
Approx. Funding Date
12/01/2023
Property Type
Property City
Philadelphia
Property State
PA
Loan Term (months)
12
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
1
Building Square Footage
2,424
Borrower's Plan
Continue Occupancy
Exit Strategy
Refinance
Borrower Credit Rating
Good
Interest Rate
13%
Origination Points
3%
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.
Funded By
Gelt Financial, LLC
Creative Private Financing for Commercial Real Estate since 1989