Bridge Loan for Chicago Commercial Property Investor

$1.3MM bridge loan secured by 4 commercial properties in the Albany Park neighborhood of Chicago, IL. The Borrower needed to cash out some equity to pay for legal and operating expenses. We paid off the previous loan balance of and provided the need cash in a timely manner. The collateral for this loan consists of 4 adjoining retail properties totaling approximately 27,000 square feet. The properties collectively have an occupancy rate of over 90%, and most of the tenants are “mom & pop” stores. The Borrower has operated a business in one of the spaces for over 25 years. Based on a local Chicago commercial real estate broker’s opinion of value and a past appraisal, we estimate the value to be approximately $2,900,000 so the LTV (loan-to-value) for our bridge loan is 45%. Owemanco has provided private money financing to the Borrower several years ago and we had a good experience. That bridge loan was refinanced with a local bank, and this is the same expected exit strategy for the current loan. The Borrower plans to refinance with a conventional lender to pay off our 1st trust deed bridge loan within the 2-year term. This loan was funded in June 2016.