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Deal Details
Private Loan Type
Commercial Property Value Add
Approx. Funding Date
02/29/2024
Property Type
Property City
Los Angeles
Property State
CA
Loan Term (months)
18
Lien Type
1st Mortgage
Payment Type
Interest Only
Purchase Price
$1,970,000
Loan-to-Purchase Price
75%
Borrower's Contribution to Purchase
25%
Source of Borrower's Contribution
Cash
Location Type
Urban
Property Condition
Fair
Occupancy at Closing
All Units Occupied
Number of Units
9
Building Square Footage
6,150
Lot Square Footage
14,900
Lot Acreage
0.34
Borrower's Plan
Rehab and Rent
Exit Strategy
Refinance
Borrower Credit Rating
Excellent
Interest Rate
9.5%
Origination Points
1%
Deal Summary
SDC Capital, a direct private lender based in Burbank, funded a $1,475,000 1st lien position bridge loan for the acquisition of a 9-unit multifamily property in Los Angeles, CA. We funded 75% of the $1,970,000 purchase price, while the Borrower contributed 25% cash at closing. The Borrower had significant multifamily value-added experience, including a strong balance sheet. They were a repeat client of ours and had excellent credit history. The rents for this property were below market and some of the units needed to be upgraded. The Borrower plans to renovate a few of the units and will do so using their own funds. We did not include a hold-back of rehab money in this loan. Once the renovations are completed and rents have increased, the Borrower will seek a conventional multifamily loan to pay off our loan. The interest rate was 9.5% and we charged a 1% origination point, with a loan term of 18 months. We don’t normally go so low on points for a term over 12 months, but we made an exception because of the long relationship we had with the Borrower. This multifamily bridge loan was funded in February 2024.
Funded By
SDC Capital
Family Office Lender. No 3rd-party appraisal (typically). Soft Money Terms in 1st or 2nd Lien Position.