bridge loan financing

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					                                                                                                                     www.centerline.com

   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.
                                                                        Recourse
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.
                                                                        Reserves
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.
Spread
Market competitive pricing available upon request.                      Loan Costs
                                                                        Borrower is responsible for all due diligence and transaction
                                                                        costs.

				
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posted:11/14/2008
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