Opportunistic Bridge

Loan Terms | Opportunistic Bridge

Red Oak is debt fund sponsor that specializes in providing short-term, structured financing solutions on commercial real estate projects in primary, secondary and select tertiary markets. Our experienced team of capital markets and lending experts applies institutional-caliber underwriting standards to small-balance sheet loans.

Program description | Opportunistic Bridge

Higher-leverage, floating-rate bridge lending program for commercial real estate assets that have a substantial value-creation component. The loan includes a small equity component in the form of a higher LTC in exchange for a higher interest rate and exit fees.

Why Consider This Program?

You’re seeking short-term funding to rehabilitate, reposition or stabilize an asset
You need financing with an equity component provided by the lender
You need flexible, non-permanent capital to implement a conversion, expansion or renovation of a core commercial real estate asset

Why Choose Red Oak?

Red Oak can, depending on the upside potential, provide a higher LTC (providing equity the borrower does not have to raise) than many other small-balance bridge lenders in the market.

Bridge Loans

FHA/hud Loans

Multifamily & Affordable Housing

Senior Housing & Healthcare

Loan Terms | Opportunistic Bridge

Red Oak is debt fund sponsor that specializes in providing short-term, structured financing solutions on commercial real estate projects in primary, secondary and select tertiary markets. Our experienced team of capital markets and lending experts applies institutional-caliber underwriting standards to small-balance sheet loans.

Program | Opportunistic Bridge

Higher-leverage, floating-rate bridge lending program for commercial real estate assets that have a substantial value-creation component. The loan includes a small equity component in the form of a higher LTC in exchange for a higher interest rate and exit fees.

Why Consider This Program?

You’re seeking short-term funding to rehabilitate, reposition or stabilize an asset
You need financing with an equity component provided by the lender
You need flexible, non-permanent capital to implement a conversion, expansion or renovation of a core commercial real estate asset

Why Choose Red Oak?

Red Oak can, depending on the upside potential, provide a higher LTC (providing equity the borrower does not have to raise) than many other small-balance bridge lenders in the market.

Bridge Loans

FHA/hud Loans

Multifamily & Affordable Housing

Senior Housing & Healthcare

Financing Parameters

Property Types

Multifamily, Industrial, Retail, Mixed Use, Hospitality, Office, Medical Office, Self-Storage, Manufactured Housing

Loan Amount

$1 Million to $10 Million

Loan Purpose

Acquisition, Refinance, Conversion, Rehabilitation, Situational, Stabilization

Property Location

Primary, Secondary & select Tertiary markets with a minimum population of 50,000 to 100,000 people

Maximum LTV/LTC

Up to 75% LTV (based on stabilized value)
Up to 90% LTC (based on transaction underwriting)

Interest Rate

1-Month Term SOFR plus 600BPs – 700BPs (interest only)

Loan Term

1 to 3 Years (fully extended)

Floor / Rate Cap

The rate/floor will be set at the closing of the loan. No Rate Cap will be required

Extensions

Up to four (4) extensions of 6 months each, at market extension fees

Origination Fees & Exit Fees

Market competitive fees based on the loan size, leverage, complexity and timing of the transaction

Lien Position

Senior Position (secondary financing prohibited)

Funding Structure

Full funding with holdback

Recourse

Non-recourse, other than standard “bad boy acts” or recourse structure for higher-risk transactions

Timing to Close

Typically 30 to 45 days from acceptance of LOI and receipt of deposits

Debt Service Reserve

Below 1.00X DSCR acceptable if supported by a debt service reserve (cash-flowing assets preferred)

Prepayment Penalty

Minimum interest, generally half of initial loan term

TI/LC and Future Advances

Future funding facility toward tenant improvements, leasing commissions, rehabilitation and conversion costs

Deposits

Expense deposit adequate to cover costs for third-party reports, legal fees and other customary due diligence or underwriting costs

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Oak Real Estate Partners' alternative investment platform is built around lending solutions that are financially engineered and structured to deliver alternative asset opportunities designed to align and support institutional investment objectives.

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