We recently arranged $2.75 million in bridge financing for a client purchasing a mixed-use property. With a 1031 exchange deadline approaching, the borrower needed a lender capable of evaluating the transaction quickly and closing within a limited timeframe.
Transaction Summary
- Loan type: Bridge financing
- Property type: Mixed-use property
- Loan amount: $2,750,000
- Time to funding: 19 days
- Underwriting: Based primarily on property value
The Situation
The client needed to close on a mixed-use property before an important 1031 exchange deadline. Missing that deadline could have disrupted the purchase and affected the potential tax-deferral benefits associated with the exchange. Commercial financing was not practical because the normal underwriting and approval process could not accommodate the required closing schedule. The borrower needed an aggressive bridge lender that understood the property and could act quickly.
The Financing Solution
Through our commercial lender network, we sourced a bridge lender capable of underwriting the transaction primarily on the value of the underlying asset. Our lender relationships and experience with commercial mortgage underwriting allowed us to present the transaction effectively, address potential issues early, and keep the process moving toward closing. The $2.75 million loan funded in just 19 days, allowing the client to complete the acquisition within the required timeframe.
Bridge Financing for Time-Sensitive Transactions
- 1031 exchange purchases
- Time-sensitive property acquisitions
- Mixed-use and commercial properties
- Transitional or underperforming assets
- Properties requiring renovation or stabilization
- Borrowers awaiting permanent financing
- Transactions requiring asset-based underwriting
Another Transaction Successfully Funded
This closing demonstrates the value of having access to the right lender for the situation. When a commercial transaction involves a firm deadline, conventional financing may not move quickly enough. Our role is to understand the complete scenario, identify an appropriate capital source, and help move the financing from application to closing. We provide access to bridge, commercial, and private financing solutions for borrowers with time-sensitive or complex real estate transactions.
Contact us to discuss your transaction.
