Opportunistic 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.

Opportunistic Bridge Loan Program

Program Description

Higher-leverage, fixed-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 exit fees and a higher interest rate.

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

  • You're seeking short-term funding to rehabilitate/reposition an asset

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

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

financing parameters

Property Types

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

Loan Amount

$1 Million to $15 Million

Loan Purpose

Acquisition, Stabilization, Refinance, Conversion, Rehabilitation, Situational 

Asset Location

Primary, secondary & select tertiary markets with a minimum population of 50,000 to 100,000

Maximum
LTV/LTC

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

Interest Rate

Starting at 9.99% fixed rate (interest only)

Loan Term

1 to 3 Years (fully extended)

Extensions

Dependent on business plan

Origination &
Exit Fees

3 to 5 Points to lender, interest accrual
Exit fees based on required yield (on higher LTC transactions)

Lien Position

Senior Position (secondary financing prohibited)

CapEx Holdack

Full funding with holdback

Recourse

Full/Limited Recourse

Timing to Close

30-45 days from acceptance of LOI and receipt of deposits

Amortization

Interest only, more 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 customary due diligence or underwriting costs

CONTACT US

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