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Home >
» Hard Money/Bridge Loan |
Bridge Loans for Apartment and
Multifamily Properties
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Capital Assets provides bridge loans for apartment buildings and other multifamily property types for the acquisition, rehab or repositioning of?properties that do not operate at stabilized levels in?order to?be eligible for permanent financing. The Prime Series?program is a competitively priced option for experienced?sponsorship with properties expected to meet permanent?financing criteria within 18 months. Prime Series is not?a hard or soft equity program.
- LIBOR based pricing
- Competitive fee structure (entry and exit)
- Non-recourse
- Interest reserve available
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- Up to 80% LTV based on stabilized value
- Minimum and no in-place DSCR requirements
- No prepayment premium after six months
- Available in primary and secondary markets
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Prime Series Multifamily Bridge Loan Program Guidelines
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Property Types |
- Apartment buildings
- Student housing
- Affordable housing
- Seniors housing
- Multifamily mixed-use
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Eligibility |
Single or multi-asset portfolios. |
Purpose |
Available for the acquisition or?refinance of multifamily properties that do?not meet the minimum requirements for
permanent financing. Properties that are in?lease-up, being repositioned or under?rehabilitation and value add opportunities. |
Bridge Loan Size |
Multifamily bridge loans from $5 million?with no maximum – smaller loans considered?on an exception basis. |
Economic Occupancy |
No minimum economic occupancy required. |
Minimum DSCR |
- Stabilized forecasted DSCR of 1.25 -?interest rate used to determine DSCR is?based on current permanent rate
financing plus an additional spread of?100-150 bps.
- No in-place DSCR requirements for?most properties and sponsors. A minimum?in-place DSCR may be required for?markets, properties or sponsors that?exhibit higher risk.
- In place DSCR less than 1.05?requires an interest ?reserve.
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Maximum LTV |
Up to 80% LTV based on stabilized value.?Leverage intended to be consistent with?permanent financing levels at cquisition. |
Amortization |
Interest only. |
Interest Rate |
- LIBOR based floating rate.
- Spread above LIBOR (450-550 bps).
- LIBOR floor rate equal to LIBOR rate
at loan inception.
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Term |
18 months with two six month extensions. |
Prepayment Penalty |
Open to prepayment after six months. |
Guarantee |
Non-recourse for most loans subject to?standard carve-outs. |
Assumable |
Yes, subject to lender approval. |
Supplemental Loan |
Available 12 months from date of closing
of first loan. |
Reserves |
- Taxes and insurance.
- Deferred maintenance, repairs, major?rehab costs.
- Interest reserve for may be required?for properties with in-place DSCR below?1.05.
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Fees |
- 1%-3% commitment fee.
- 1% exit fee (waived if refinanced
through capitalassists).
- 1% extension fee.
- Third party reports (TBD).
- Legal (TBD).
- Underwriting (TBD).
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Subordinate Debt |
Not permitted. |
Borrower |
Single asset single purpose bankruptcy?remote U.S. entity. |
Sponsor Requirements |
Strong experienced owner-operators with?a proven track record in multifamily?housing. Prefer sponsorship with comparable?multifamily experience with repositioning,
rehab or construction. |
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Program ?availability — including LTV, DSCR, and loan size?– may vary depending on property location, economic
conditions, exposure, and other variables that may?negatively influence risk. Program guidelines,?rates, terms and fees are subject to change. |
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What You Need to Know
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- Prime Series Multifamily Bridge loan program?requires strong experienced sponsorship.
- Minimum sponsorship net worth and personal liquidity?requirements.
- Sponsorship must have a proven track record in?multifamily housing with a preference towards
sponsorship with local market experience or?completed rehab, construction or repositioning of?comparable sized assets.
- Properties located in secondary and tertiary markets?are eligible.
- Syndicated deals require extra scrutiny.
- Take out is based on Agency, HUD or CMBS programs.
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Equity Series Multifamily Bridge Loan Program
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| For sponsors, properties or markets that don’t?meet the minimum eligibility requirements for?our Prime Series program, capitalassists offers a soft?and hard equity option through the Equity Series?Bridge program. Borrowers can expect higher?rates and fees, but more flexibility with?sponsorship and property requirements. |
- Sort or hard equity program
- Interest rates start in the 8% range
- Personal recourse required
- Can close in less than 15 days
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- 3%-5% commitment fee
- No occupancy or DSCR requirements
- Less emphasis on strength of ?ponsorship and more?emphasis on asset
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