BridgeCore Capital, Inc. has successfully closed a $6.5 million refinance deal for a 36-unit apartment building located on the border of Koreatown and MacArthur Park in Los Angeles. This transaction highlights the company's ability to provide tailored financing solutions in complex real estate scenarios.
The refinance was necessitated by the borrower's need to pay off a matured loan and settle outstanding property taxes. Recognizing the challenges faced by the borrower, BridgeCore structured the loan with a six-month prepaid interest reserve. This strategic move was designed to cover the shortfall between the property's net operating income and BridgeCore's debt service, effectively preventing potential payment defaults during the loan term.
In a demonstration of flexibility, BridgeCore increased the loan proceeds by $100,000 from the original amount outlined in its term sheet. This additional funding was secured by cross-collateralizing a subordinate lien position on a non-owner-occupied single-family home in Hesperia, California. This arrangement allowed BridgeCore to meet the borrower's cash requirements while maintaining appropriate risk management measures.
The borrower's exit strategy for this loan involves either refinancing with a conventional loan or selling the property within the next 12 months. This approach aligns with typical bridge loan structures, which are designed to provide short-term financing solutions.
BridgeCore's ability to coordinate effectively with a mortgage advisory team and title company enabled the transaction to close in an expedited timeframe. This swift action was crucial in helping the borrower avoid foreclosure by the previous lender, underscoring the importance of speed and efficiency in bridge lending scenarios.
This transaction exemplifies BridgeCore's comprehensive approach to bridge lending, leveraging its resources and experience to offer competitive loan terms while addressing critical timing challenges. The company's willingness to adapt its lending parameters to meet unique borrower needs demonstrates the flexibility often required in the bridge lending market.
For more information about BridgeCore Capital and its services, interested parties can visit https://www.bridgecorecapital.com.
