Opportunistic Bridge Loan Program
Providing financing solutions
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.
Opportunistic Bridge Loan Program
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 a higher interest rate and exit fees.
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You’re seeking short-term funding to rehabilitate, reposition or stabilize an asset
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You need financing with an equity component provided by the lender
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You need flexible, non-permanent capital to implement a conversion, expansion or renovation of a core commercial real estate asset
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.
financing parameters
Property Types
Multifamily, Industrial, Retail, Mixed Use, Hospitality, Office, Medical Office, Self-Storage, Manufactured Housing
Loan Amount
$1 Million to $15 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) extentions 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
CONTACT US
To request information about our company, please complete the form and someone will be in touch shortly.
HEADQUARTERS
5925 Carnegie Boulevard
Suite 110
Charlotte, NC 28209
980.288.6627
[email protected]
