Participating 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.
Participating 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 larger equity component in exchange for a percentage of the value creation realized in the project at sale or refinance.
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You’re seeking short-term funding to build, 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 build or implement a conversion, expansion or renovation on a core commercial real estate asset
Red Oak will take on a substantial amount of the project risk, while your loan is fully, or almost fully, financed in exchange for a participation in the property’s upside.
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, Construction, 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 100% LTC (based on transaction underwriting)
Interest Rate
Starting at 10.99% 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
3 to 5 points to lender
Exit Fees
15% to 25% participation in value creation (based on specific transaction)
Lien Position
Senior Position (secondary financing prohibited)
Funding Structure
Full funding with holdback
Recourse
Full/Limited Recourse
Timing to Close
30 to 45 days from acceptance of LOI and receipt of deposits
Debt Service Reserve
Provided based on transaction underwriting
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
625 Kenmoor Avenue SE, Suite 200
Grand Rapids, MI 49546
616.324.0590
[email protected]
