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Commercial Mortgage Loans |
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| Why Choose Capital Assets,Inc |
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| Capital Assets,Inc has the knowledge,
expertise and strategic relationships required to
provide you with the most competitive rates and terms
for your commercial property loan. |
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Multiple commercial financing options
- Competitive interest rates, terms and costs
- Knowledgeable and seasoned commercial mortgage
specialists
- Certainty of execution
- Convenient electronic loan process saves you
time and money
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| Request a Quote Today! |
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| Provide some basic information
about the property and commercial real estate financing you’re
seeking and we will provide a no cost no obligation
quote. |
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Security and privacy protected
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No social security number required
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No credit inquiry
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No cost or obligation
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| Commercial Learning Center |
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Home >
Commercial Loan Center Refinance or Purchase |
Bridge Loans for Apartment and
Multifamily Properties
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capitalassists 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.
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LIBOR based pricing
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Competitive fee structure (entry and exit)
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Non-recourse
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Interest reserve available
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Up to 80% LTV based on stabilized value
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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 acquisition. |
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.
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Minimum sponsorship net worth and personal liquidity
requirements.
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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.
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Properties located in secondary and tertiary markets
are eligible.
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Syndicated deals require extra scrutiny.
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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. |
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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
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No occupancy or DSCR requirements
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Less emphasis on strength of sponsorship and more
emphasis on asset
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