Core 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.
Core Bridge Loan Program
Floating-rate bridge lending program for institutional-quality commercial real estate assets that are in transition, are currently cash flowing (l.00x or greater) and require additional funds/time to reach stabilization.
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You’re seeking short-term funding to rehabilitate, reposition or stabilize an asset
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You need financing to complete a property acquisition or redevelopment project
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You need flexible, non-permanent capital to implement the renovation and stabilization of a core commercial real estate asset
Red Oak can provide a moderately higher LTC and more attractive rates than many other small- to mid-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
$2 Million to $20 Million
Loan Purpose
Acquisition, Refinance, Situational, Stabilization
Property Location
Primary and secondary markets only
Maximum
LTV/LTC
Up to 75% LTV (based on stabilized value)
Up to 75% LTC (based on transaction underwriting)
Interest Rate
1-Month Term SOFR plus 450BPs – 550BPs (interest only)
Loan Term
1 to 5 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 three (3) extension of 12 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
Debt Service Reserve
Properties must provide at least break-even debt service coverage (l.00x on existing cash flow based on proposed loan amount)
Prepayment Penalty
Minimum interest, generally half of the initial loan term
TI/LC and
Future Advances
Future funding facility toward tenant improvements, leasing commissions and other approved 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]
