Participating Bridge Loan Program
Providing financing solutions
Participating Bridge Loan Program
Higher-leverage, floating-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.
- 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
financing parameters
Multifamily, Industrial, Retail, Mixed Use, Hospitality, Office, Medical Office, Self-Storage, Manufactured Housing
$1 Million to $10 Million
Acquisition, Refinance, Rehabilitation, Situational, Stabilization
Primary and secondary markets only
Up to 75% LTV (based on stabilized value)
Up to 100% LTC (based on transaction underwriting)
1-Month Term SOFR plus 700BPs (interest-only)
1 to 3 Years (fully extended)
Floor Cap / Rate Cap
The rate/floor will be set at the closing of the loan. No Rate Cap will be required
Up to four (4) extensions up to 6 months each, at market extension fees
Origination Fees & Exit Fees
Market competitive fees based on the loan size, leverage, complexity and timing of the transaction
15% to 25% participation in value creation (based on specific transaction) subject to returns
Senior Position (secondary financing prohibited)
Full funding with holdback
Non-recourse, other than standard “bad boy acts” or recourse structure for higher-risk transactions
Typically 30 to 45 days from acceptance of LOI and receipt of deposits
Below 1.00x DSCR acceptable if supported by a debt service reserve (cash-flowing assets preferred)
Minimum interest, generally half of initial loan term
Future funding facility toward tenant improvements, leasing commissions and rehabilitation costs
Expense deposit adequate to cover costs for third-party reports, legal fees and other customary due diligence or underwriting costs