Mezzanine Debt Terms
Program Highlights
- Secured by an assignment of 100% of borrowers interest in real estate/business, guarantee from borrower principals and a second lien/security interest in the real estate/ business.
- Acquisition, construction, redevelopment,working capital where there is a value creation opportunity.
- Commitments from $200,000-$2 million. Terms from 2-5 years
- The current interest rate floats at a spread over the prime rate plus an ownership position in the real estate project.
- Real Estate transactions typically have a first mortgage lender ahead of Bridge Funding Corporation.
Summary of Terms
- Loan Size - $200,000 - $2,000,000 (10-20% of total costs)
- Interest Rate - Lender's prime + 2%
- Loan Fee - 1-2%
- Ownership - 30% ownership in project
- Loan to Cost - up to 100%
- Loan Term - 2-5 years
- Amortization - interest only
- Guarantee - 100% joint and several from principals of borrower
- Property Types - multi-family, mobile home parks, self-storage, industrial, retail, residential, land development, office, hotel, condominiums
- Business Types-growth
- Borrower - specific property type experience