$5 Million, Two-Year Bridge Loan Secured by Commercial Real Estate

Transaction Summary
Source …………………………………………………………… Referral from Existing Client
On / Off Market ………………………………………………………………………….Off Market
Transaction Date ………………………………………………………………………… Sep 2013
Description…………………………………………………………….. $5 Million Bridge Loan
Collateral …………………………………………………………………………………………… Land
Location ………………………………………………………………………………… Portland, OR
Term ………………………………………………………………………………………………….. 2 yrs
Interest Rate ………………………………………………………………………………………. 8.0%

  • Borrower was developing land for a future site to be developed by a national hotel developer;
  • The purpose of the Bridge Loan was to pay off an existing maturing loan;
  • Take out of Bridge Loan is the eventual sale of the property to the national hotel developer;
  • Borrower shopped the market for short-term secured debt and was unable to get a loan to pay off the entire balance of the existing loan for a cost of funding lower than 14%;

Elk Rock Value-Add: Through our funding network, we were able to place the loan at a funding rate which was 600 basis points lower than the nearest quote from other lenders and close on the loan within 60 days.