Purpose:

Commercial construction loans and or commercial bridge financing for the ground-up development of new commercial properties, or the renovation and repositioning of existing properties, for both pre-leased and speculative development. Loan structure, pricing, advance to cost ratios and recourse requirements are flexible and will be tailored to meet the needs, risk profiles, and requirements of individual transactions.

Acceptable Property Types:  

• Apartments
• Condominiums
• Office
• Retail
• Industrial
• Mixed-Use
• Hotels

Loan Term: 

Typically 12 to 24 month interest only term, with extension options when appropriate.

Loan to Value: 

75% on most property types; 65% on special purpose and hotels 

Maximum
Loan to Cost: 

75% to 85% (up to 100% on pre-leased projects) 

Loan Structuring: 

Loans typically structured with holdbacks for funding of all renovation and/or construction costs, tenant improvements, leasing commissions, and interest carry until stabilization, with monthly draws as costs are incurred.

Earnout Provisions: 

Earn out of up to 75% of the stabilized value funded upon achieving specified occupancy and NOI hurdles.

Loan Pricing: 

3.00% to 4.00% over six month LIBOR (interest only), plus 

Loan Fees of 2% to 4%. 

Liability: 

Loans are typically non-recourse, except for standard carve-outs. Speculative development projects will generally require completion and/or debt service guarantees. 

Closing Time Frame: 

Approximately 45 to 60 days. Quick closes available for time sensitive transactions

Permanent Loan:

Permanent takeout option offered with all construction / bridge loans. An Exit Fee of 1% is charged if the takeout is not elected.