Loan type: Bridge Loan
This was an 18 month bridge loan with interest rate of Prime plus 1% and a floor of 5%. The loan is interest only for the first twelve months and amortized over 15 years thereafter. It was underwritten at 45% of value. The client is a general contractor who completed construction of the project entirely with their own cash, and due to extenuating circumstances missed the leasing season. At loan closing the property was approximately 25% occupied. The financing allowed the client to recoup the vast majority of the construction cost until the property is stabilized and ready for permanent financing.