Hotel Construction, Specialty Projects, Other Assets and Bridge Loan Program

Construction and Bridge Loan Program

Finance provides first lien non-recourse (completion and standard carve out guarantees only) construction,
acquisition, bridge, recapitalization, and debtor-in-possession financing under its Construction and Bridge Loan
Program to borrowers for real estate projects located throughout the United States.

Terms and conditions under loan program typically include the following*: Eligible Locations: Real estate projects located throughout the United States
Property Types: 

Strong emphasis on hotels, but also pursuing opportunities to lend on multifamily, senior
housing, student housing, office, retail, and select other specialty assets such as
condominium, time share and fractional projects
Security: First mortgage lien on the subject property, and pledge of ownership interests
Loan Sizes: $15 million to $75 million
Loan to Cost Ratio: 55% to 75%
Non-recourse, with standard carve out guarantees and completion guarantees on
construction loans
Interest Rate: Libor based floating rate typically between L+8.00% and L+9.00%
Origination Fee: 2% of loan amount
Exit Fee: 1 - 2% of loan amount
Loan Term: 36 month primary term; with up two 12-month extensions
Debt Service: Interest only during the primary term
Prepayment: 12 to 18 months yield protection from project completion
Reserves/ Escrows: Real estate taxes, insurance and replacement reserves
Emphasis on borrower equity funded in connection with loan, asset quality, value creation
business plan, market analysis, and sponsorship
Expense Deposit:
$35,000, payable upon acceptance of Loan Application to cover 3rd party reports and out of
pocket closing costs. Any remainder credited back to borrower at loan closing, or refunded
in the event the subject loan application is not approved.
Closing Time:
Typically 30 to 60 days from application and deposit remittance with ability to close sooner
on time sensitive transactions
Third Party Reports:
MAI Appraisal, and Phase I environmental, and other reports as may be relevant and / or
required by HSF (feasibility, property condition etc.)

We also can do final loans after construction.

Contact with your projects

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