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
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
616.324.0590
[email protected]
