Participating Bridge Loan Program

Providing financing solutions

Opportunistic Bridge
Loan Program
Participating Bridge
Loan Program
Core Bridge
Loan Program
Core-Plus Bridge
Loan Program
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

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 larger equity component in exchange for a percentage of the value creation realized in the project at sale or refinance.

Why consider this program?
  • You’re seeking short-term funding to build, rehabilitate, reposition or stabilize an asset
  • You need financing with an equity component provided by the lender
  • You need flexible, non-permanent capital to build or implement a conversion, expansion or renovation on a core commercial real estate asset
Why choose Red Oak?
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 11.99% 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

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HEADQUARTERS
625 Kenmoor Avenue SE, Suite 200
Grand Rapids, MI 49546
616.324.0590
[email protected]