All the facts relating to commercial real estate bridge loans offered by Clopton Capital
Eligible real estate asset classes for bridge leveraging: Multifamily, office, industrial, retail, commercial, hotel.
Where: All real estate markets anywhere in the US.
Primary need areas: Raising fast capital for acquisitions, refinancing, cash-outs, Value-add & re-positioning, and Heavy & Light rehab
Best channels for Bridge Financing: 1st & 2nd Lien loans, and mezzanine
Loan amounts: From $1 – $40 million, loan to value and loan to cost up to 85%
Clopton is a national commercial mortgage broker focused on clients that need fast capital for developing and investing in commercial properties in our country’s cities, towns, and rural areas. We are finely tuned into all the in’s and out’s when it comes to speed of funding for time-sensitive acquisitions and loan maturities, refinancing existing interest-pressured commercial mortgages, and new or rehab construction – even saving real estate threatened by foreclosure. Our longstanding relationships with the most competitive commercial mortgage lenders in the market give us access to – and hence to our clients – commercial real estate bridge loan financing options that are accessible easier and faster than any business mortgage you can think of. These options are not ordinarily offered by traditional banks, yet not surprisingly Clopton – with several $ billion of real estate funding deals under our belt – can secure highly competitive interest rates for almost any bridge loan requirement. Get to know us here: https://cloptoncapital.com/.
It is a well-known fact that asset-backed borrowers value our involvement in their commercial property loan arrangements because we are reliable, versatile, and resolute. We have a stellar reputation for getting deals closed quickly at the lowest available interest rates, with redemption terms that don’t add to your stress. On the contrary, it’s our mission to always take pressure off your shoulders. Most importantly, we make no distinction preference-wise between small and big clients: every deal – whether a $1 million bridge leveraging application or for a client looking to raise as much as $40 million – gets the same heralded Clopton VIP treatment built on expertise in every aspect of the commercial loan arena.
Start with our guide for the most astute selection from reputable commercial bridge loan lenders to suit your needs best
Commercial Real Estate Bridge Loan dilemmas: some real client case studies resolved by us.
Case Study 1: A client facing an $8 million maturing commercial property loan attached to a retail center in central Illinois was in urgent need of refinancing. Making things more complicated, the center was saddled with a large space reflecting a near-term lease roll that simply would not be renewed prior to the loan maturing. This single blemish interfered with the negotiation for a permanent loan and left our client (the owner) in a quandary with respect to continuing the financing of his LLC-held investment. We were able to arrange a fast non-recourse bridge loan with a 24-month term: one that bought our client the time necessary to complete the lease roll for the problem area, thus stabilizing the property and transitioning it into qualifying for a permanent loan. The bridge loan was structured as interest only, 75% ITV, and non-recourse.
Case Study 2: A client borrower in an investor-partnership structure approached us looking for an acquisition and rehab bridge loan for a value-add apartment building deal in San Antonio. The client requirements included securing rehab money, to be interest only, with non-recourse, and allowing enough time to fix the property to the point it became stabilized enough to apply for a permanent loan. Our professional team of commercial mortgage brokers put their heads together and was able to arrange a 24-month, $5.5 million non-recourse advance, giving our satisfied client 75% of stabilized value in acquisition and rehab dollars. As a result, the partnership achieved its objectives quickly with a safe commercial real estate bridge loan by successfully controlling the property in the first instance, then executing as expected, and emerging with a group of happy investors behind it.
Case Study 3: A Seattle client borrower immersed in a trust structure had a bridge loan requirement aimed at exiting out of a parcel of $8 million commercial first mortgages maturing together for 4 office/retail investment properties. The trustee presented us with her biggest issue, namely being unsure of what she wanted to do with the properties. She needed the time to decide if the investing entity was going to sell or refinance, but certainly, a hard money lending option was not one she was prepared to consider. After connecting with a few of our close commercial bridge loan lenders, we seamlessly arranged a short-term interest-only loan, non-recourse, with a very light prepayment, giving the trust the required additional 24 months to figure out its long-term strategy for the properties.
Still have questions about commercial real estate bridge loans? We have answers.