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
Fixed-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, Rehabilitation, 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
Starting at 6.99% (interest only)
Loan Term
1 to 5 Years (fully extended)
Extensions
Periods of 6 to 12 months, available at market extension fees
Origination Fees
1 to 2 points to lender
Exit Fees
Exit fees based on required yield
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
30 to 45 days from acceptance of LOI and receipt of deposits
Debt Service Reserve
Properties must provide at least break-even debt service coverage (l.00x on existing cash flow)
Prepayment Penalty
Minimum interest, generally half of initial loan term
TI/LC and
Future Advances
Future funding facility toward tenant improvements, leasing commissions and rehabilitation costs
Deposits
Expense deposit adequate to cover costs for 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
616.324.0590
[email protected]
