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

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 a higher interest rate and exit fees.

Why consider us This Program?
  • You’re seeking short-term funding to rehabilitate, reposition or stabilize an asset

  • You need financing with an equity component provided by the lender

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

Why choose Red Oak?

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

Starting at 9.99% fixed rate (interest only)

Loan Term

1 to 3 Years (fully extended)

Extensions

Periods of 6 to 12 months, available at market extension fees depending on business plan

Origination Fees

2 to 4 points to lender

Exit Fees

Exit fees based on required yield (on higher LTC transactions)

Lien Position

Senior Position (secondary financing prohibited)

Funding Structure 

Full funding with holdback

Recourse

Full/Limited & Non-Recourse

Timing to Close

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

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