Small Balance Bridge Product

Property  Types: Single Family, Condos, Co-ops, Apartments, Mixed-Use, Retail, Small Office Buildings, Industrial & Warehouse, other asset classes on a case by case basis.
O/O Properties:   Allowed subject to minimum credit requirements for the tenant and guarantor. Tenant shall have an EBITDAR/Rent ratio in excess of 2.0x
Loan Purpose: Acquisition — Subject to minimum equity investment of 20%
ARV: 65%
Refinance – Cash outs considered with title seasoning requirements
Loan Size:$200k to  $4MM
Locations: New York, New Jersey, Florida, Massachusetts, Connecticut
Term:1 to 3 year primary term (with extension options)
Rate: 10 – 12.5%Market based spread over LIBOR (or equivalent benchmark)
Rate Type: Floating

Fees:                  Generally 1.0% – 3.0% at closing, upfront Deposit for 3rd Parties usually range from $5,000 up to $7,500
DSCR: May be minimal at closing but >= 1.2x on an underwritten stabilized basis (exceptions for condominium loans)
LTV/C:  Up to 80% on an as-is basis and 65% on a stabilized basis. LTC is based on lender approved costs of acquiring the asset.
Subordinate Debt:  Not Permitted.
Reserves:  Determined on a loan by loan basis. Generally, includes funding of tax, insurance, TI/LC, replacement reserves. If the property’s LTV is less than 50% and the DSCR is above 2.00x, reserves may be waived on a case by case basis. Interest and operating expense reserves may be required if the property’s in-place DSCR is < 1.05x
Prepayment: Call protection (minimum interest) for loans will generally be required for the first 6 months
Recourse: Full Recourse
Borrower: Single Purposes Entities.

Documentation Requirements – Initial Review

  • Investor
    • Sponsor’s Resume/Executive Summary
    • Sponsor’s Business Plan
    • Current Rent Roll
    • Last 2 yrs. Property Operating Statements/P&Ls
    • Pro Forma/Discounted Cash Flow
  • Owner Occupied
    • Sponsor’s Resume/Executive Summary
    • Sponsor’s Business Plan
    • Last 2 yrs. Business Tax Returns
    • Last 2 yrs. Personal Tax Returns