Bridge Loans Pic

BRIDGE LOANS

Bridge loans are an important part of CCP’s financing capabilities. Frequently a property is purchased before stabilization or as part of a “value-added” strategy. In these scenarios, we help maximize loan dollars to minimize higher priced equity requirements. In this way, our client obtains the lowest overall cost of capital on financing proceeds.

Floating rate debt with flexible prepayment allows the properties to be refinanced with permanent financing as soon as stabilization is achieved or it allows the properties to be sold without prepayment penalties to attract the highest sales prices.

CCP has access to both recourse and non-recourse lenders and each has its own unique underwriting criteria and aggressive/creative abilities. CCP will match up each property and borrower with the right capital source.

CLOSED TRANSACTIONS

Borrower was looking for maximum acquisition leverage on apartment building purchase for covered land entitlement strategy:

  • 80% loan to purchase price acquisition financing, 1.00 DCR
  • 6.50%, interest only, non-recourse
  • 3 year term with two 1-year extensions
  • Locked for 18 months then open to prepay
  • Non-Recourse
  • Debt Fund
Loan Amount: $3,000,000
Loan Type:       Bridge Loan: 15 Unit Apartment Complex
Loan Location: Southern California

Borrower was looking for maximum Bridge loan leverage on two infill land parcels approved for Condominiums:

  • 65% LTV
  • Prime + 1.00%
  • 12 month loan plus one 6 month extension
  • The loan took out higher interest rate acquisition financing
  • Interest Reserve Included
  • Locked for 18 months then open to prepay
  • Recourse
  • Private Lender
Loan Amount: $18,000,000
Loan Type:       Bridge Loan
Loan Location: Southern California