bridge loan financing by newrock



   asset management                     affordable housing               commercial real estate                credit risk products

bridge loan financing
(Secured by 1st lien)

This product allows borrowers to finance properties                     Amortization
            pms 229/8003
or portfolios with “value-added” opportunities. Cen-                    Interest only available.
terline Capital Group can structure financing that will allow borrow-
ers to carefully manage a re-leasing or repositioning program.          Prepayment
                                                                        Open to prepayment with payment of exit fees.
Property Types
“Value-added” commercial properties including multifamily, office,      Pledge
industrial, retail, self-storage and mobile home parks. Centerline      First-lien assignment of property interest. Single-purpose entities
Capital Group will also consider select hospitality and mixed-use       preferred.
property types. Emphasis will be placed projects that need short-
term lease-up, repositioning or rehabilitation.                         Fees
                                                                        Typically .5-1% of loan balance. Exit fees range from .25-1%. Exten-
Maximum LTV                                                             sion options range from .25-.5% per 12 month option.
Up to 80%. Certain loans may require sponsor guarantees.
Minimum DSCR                                                            Non-recourse except for customary environmental, malfeasance
1.05x initial coverage on an amortizing basis. Some loans will          and fraud carve-outs. Loans with elevated risks may require full
have less than a 1.0x coverage in which case an interest reserve        or partial sponsor recourse guarantees or additional structuring
will be required. Low coverage loans may require an interest re-        requirements such as letters of credit. Loans with any construc-
serve. Stabilized coverage should be Multifamily-1.15; Office-1.20;     tion or rehab component will require a completion guaranty from
Retail-1.20; Industrial-1.20; Mobile Home Parks-1.20; Hospitality-      the sponsor.
1.45; Self Storage-1.20.
Loan Amount                                                             Required for insurance, real estate taxes, leasing commissions,
$5 million – $50 million.                                               and tenant improvements. Reserves for replacement reserves
                                                                        are on a case by case basis (e.g., would not apply where exten-
Term                                                                    sive rehabilitation is intended). Reserves for identified deferred
From 18 to 36 months; with two 12 month extension options.              maintenance and renovation/ repositioning costs. Again, interest
                                                                        reserves may also be required to cover debt service shortfalls dur-
Interest Rate                                                           ing repositioning.
Variable and fixed rates available. Loans may require interest rate
caps to ensure a minimum DSCR.                                          Cash Management
                                                                        Cash management (lock-box) may be required on certain loans.
Market competitive pricing available upon request.                      Loan Costs
                                                                        Borrower is responsible for all due diligence and transaction

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