ValueXpress has announced an exciting bridge loan program that we want our clients to have access to right away. Our investor is seeking mortgage loans on transitional and value-added real estate projects that require time and capital to re-position, perform renovations, and/or increase rents. The asset types that apply are multifamily, office, industrial, independent living and student housing. The minimum loan size is $10 million, but it can go up to $100 million.
This capital is especially attractive because the leverage is up to 80% of the all-in cost or appraised value, and interest rates start at LIBOR plus 350. Loan terms provided are up to three years for the initial term plus extension options (18-month minimum interest and no lockout). Also available is a two-year initial term with extension options, in which case only 12 months of interest must be paid in the event of prepayment, but there is no lockout. The lender desires locations in the continental United States with historically strong or improving markets and solid fundamentals. The lender desires high-quality Sponsors with demonstrated track records of executing similar business plans. This loan is non-recourse except for “Bad Acts.” Breakeven/negative cash flow at closing is acceptable, provided market comps support project stabilization within the loan term with Debt Yield and LTV appropriate to facilitate an exit.