Core-Plus Bridge Loan Program

Providing financing solutions

Red Oak is an investor-driven commercial debt fund sponsor that provides short-term financing solutions on commercial real estate assets nationally. Our experienced team of capital markets and lending experts are adept at applying institutional-caliber underwriting standards to small-balance sheet loans.

Core-Plus Bridge Loan Program

Program Description

Fixed-rate bridge lending program for institutional quality commercial real estate assets that are in transition and not currently cash flowing (1.00x or less).

Why consider this program?
  • You need additional financing to complete a property acquisition or development project

  • You’re seeking short-term funding to rehabilitate an asset 

  • You need flexible, non-permanent capital to implement an expansion, renovations or conversion on a core commercial real estate asset

  • You have a high-quality asset in a top-tier market

Why choose Red Oak?

Red Oak can, depending on the upside potential, provide a higher loan-to-cost than many other small-balance bridge lenders in the market.

financing parameters

Property Types

Multifamily, Office, Industrial, Retail, Self Storage, Hospitality, Manufactured Housing

Loan Amount

$2 Million to $20 Million

Loan Purpose 

Acquisition, Stabilization, Refinance, Expansion, Rehabilitation, Situational  

Asset Location

Primary, secondary & select tertiary markets

Maximum
LTV/LTC

Up to 75% LTV (based on stabilized value)
Up to 85% LTC (based on transaction underwriting)

Interest Rate

Starting at 7.99% (interest only)

Loan Term

1 to 5 Years (fully extended)

Extensions

6 to 12 months, available at market extension fees

Origination &
Exit Fees

Market competitive fees adjusted to loan size, timing and complexity

Lien Position

First mortgage or deed of trust or note hypothecation for note-on-note financing

CapEx Holdack

Holdbacks for renovations, with timely review and disbursements typically occurring within 10 days after submission of complete draw request package

Recourse

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

Timing to Close

30-45 days from application

Amortization

Interest only, structure/sweeps may be required on a case-by-case basis

Debt Service Reserve

Below 1.0X DSCR acceptable if supported by a debt service reserve (cash-flowing assets preferred)

Minimum Interest

Minimum interest pre-payment penalty, generally half of initial term

TI/LC/Rehab Facility

Future funding facility toward tenant improvements/leasing commissions and rehab costs

Deposits

Expense deposit adequate to cover third-party reports, legal fees and other costs

CONTACT US

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HEADQUARTERS
625 Kenmoor Avenue SE, Suite 200
Grand Rapids, MI 49546
616.734.6099
[email protected]