COMMERCIAL REAL ESTATE BRIDGE LOANS
Alliance Business Capital offers Commercial Real Estate Bridge Loans as a Commercial Loan Broker. We work with a small select group of Commercial Real Estate Bridge Lenders to fund Bridge Loans originated by Alliance or an Alliance Partner.
If you have a borrower seeking a Bridge Loan Alliance may be able to assist. Give us call to find out how we might be able to work with you to secure financing for your borrower.
Bridge Loan General Guidelines
The following criteria is from one of our Bridge Lending Partners.
| Primary Property Types: | Multi-Family, Office, Retail, Light Industrial, Mixed-Use |
| Secondary Property Types: | Self-Storage, Student Housing, Hospitality, and certain Specialty Use Properties |
| Typical Loan Size: | Minimum Loan Amount of $1 Million Maximum Loan Amount is $40 Million, higher loan amounts considered on a case by case basis |
| Loan Purpose: | Transitional, Value-add and Event Driven |
| Term: | 2-5 Years |
| Leverage: | Leverage is dependent on Property Type, Location and Overall Situation but typically runs in the 65% - 80% range with 80% including mezzanine debt and available only on a case by case basis |
| Recourse: | Recourse and Non-Recourse Loans are available, however most investors primarily offer Non-Recourse Loans with an exception for a bad-boy carveout |
| Prepayment: | Prepayment Penalties vary among Investors, however there is typically some sort of prepayment penalty such as a guarantee of a minimum amount of interest |
| Debt Service Coverage: | None, Partial or Non-Cash Flowing Properties will all be considered |
| Amortization: | Typically Interest Only, however Amortization structured on a deal by deal basis |
| Origination Fees: | Alliance Business Capital charges an Origination Fee ranging from 1% to 3% of the final loan amount payable through loan proceeds at closing. We split the origination fee with the referring broker. Additionally, most bridge lenders will have an origination fee of 0% - 3% determined on a deal-by-deal basis |
| Additional Fees: | Alliance Business Capital has an engagement fee of $1500 which is non-refundable. Additionally, you will be required to cover any/all third-party fees that the lender may require. Any/all closing costs are the borrower's responsibility. |
Questions about a Bridge Loan
If you have questions or need assistance in securing a Commercial Real Estate Bridge Loan, please feel free to contact us.