Commercial Loan Direct Announces A New Apartment Bridge Loan Product To Stabilize Apartment Complexes Between $1.5 Million And $5 Million

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CLD's bridge product is designed for the acquisition and stabilization of apartment buildings with the goal of being taken out by CLD’s Fannie Mae product.

Commercial Loan Direct - Apartment Loans

Commercial Loan Direct - Apartment Loans

The purpose of this bridge loan is to stabilize and existing apartment complex and upon stabilization refinance with CLD’s Fannie Mae product

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Atlanta-based Commercial Loan Direct, a business division of CLD Capital, announces the immediate deployment of a new apartment bridge loan product. This product is designed for the acquisition and stabilization of apartment buildings with the goal of being taken out by CLD’s Fannie Mae product.

CLD Capital, one of the top online originators of commercial loans in the country, hopes to expand the eligibility of borrowers for Fannie products in the small apartment arena by offering apartment bridge loans from $1.5 Million to $5 Million.

Commercial bridge loans are often used for commercial real estate purchases to quickly close on a property, retrieve real estate from foreclosure, or take advantage of a short-term opportunity in order to secure long-term financing. Bridge loans on a property are typically paid back when the property is sold, refinanced with a traditional lender, the borrower's creditworthiness improves, the property is improved or completed, or there is a specific improvement or change that allows a permanent or subsequent round of mortgage financing to occur. The timing issue may arise from project phases with different cash needs and risk profiles as much as ability to secure funding.

Typical commercial bridge loan interest rates are usually 11–15% (with 2-4 points origination), with terms of up to 12 months. Loan-to-value (LTV) ratios generally do not exceed 65% for commercial properties, or 80% for residential properties, based on appraised value. CLD’s program offers substantial improvements over traditional bridge loans as follows:

Fernando Martin, Executive VP, says that "The purpose of this bridge loan is to stabilize and existing apartment complex and upon stabilization refinance with CLD’s Fannie Mae product which would allow the Borrower to take advantage of Fannie Mae's terms, low rates, and non-recourse options."

CLD’s apartment bridge loan program:

Loan Size: $1.5 to $5 million

Term: 12 months

Amortization: 40 years, no Interest Only

Advance Rate: Up to 90% Loan to Cost (LTC), including lender-approved soft costs.

Spread: 700 basis points plus; floor is the start rate; rate typically 7 – 7.5%

Index: 6-month LIBOR

Origination Fee: 2%

Exit Fee: 1% waived upon refinance with CLD’s internal Fannie Mae Program

Loan Extension: 2, 3-month extensions for .25% fee each

Prepayment: Open

Recourse: Full

Reserves: No reserves for bridge, no interest reserve; will impound for taxes and insurance

Underwriting: DSCR 1.0x on in-place cashflow

Commercial Loan Direct ('CLD') a division of CLD Capital is a wholesale commercial mortgage lender and apartment mortgage banker originating for its own portfolio. In addition to offering its own financial programs, CLD has partnered with institutional investors, Fannie Mae, Freddie Mac, FHA, SBA, USDA, life insurance companies, banks and real estate investment trusts to bring you a wider selection of additional lending vehicles. With a focus on commercial loans over $1 million, a diversified mix of financing products, a state of the art online commercial lending platform, and a staff of experienced professionals, CLD provides a cost-efficient solution for apartment lending and commercial property financing.

View CLD's Commercial Rates

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Leanne Eicoff
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