Arbor Bridge Loans offer commercial real estate investors the opportunity to leverage short-term financing benefits without compromising their long-term ROI, making your property’s financial transition seamless.
|Loan Amount||$5 million minimum.|
|Loan Term||Generally 1 to 3 years. Extension options available.|
|Amortization||Determined on a case-by-case basis. Typically interest only-payments.|
|Minimum DSCR||1.10x “As Is”, 1.30x – 1.40x stabilized. Lower DSCRs considered, if payment
supported by pre-funded interest reserves or guarantees.
|Maximum LTV||Up to 80% stabilized.|
|LTC||p to 80% as measured by new cash equity in the transaction
(Purchase Price + Cap Ex = Costs).
|Interest Rate||Floating rate over LIBOR index. Spread varies based on risk and terms.|
|Recourse||Generally Non-Recourse – except typical “bad boy” carve-outs.|
|Eligible Properties||ILF, ALF, ALZ, SNF or combination.|
|Eligible Transactions||Traditional acquisitions, acquisitions with rehab component, debt buy-backs with
fresh equity, and properties in lease-up in strong markets.
|Sponsorship||Established track record and appropriate net worth and liquidity commensurate
|Security||First mortgage lien on subject property.|
|Tax & Insurance Escrows||Monthly deposits required.|
|Replacement Reserves||Monthly deposits required.|
|Recourse||Non-recourse execution is available, with standard carve-outs required for “bad acts” such as fraud, bankruptcy and illegal transfers.|
|Third-Party Reports||Appraisal, Phase I Environmental, Property Condition Assessment, Zoning
Report, Liability Risk Assessment, Seismic (if applicable).
|Expense Deposit||Generally $50,000.|