Closed: 96-Unit MF Bridge-to-Perm

The Sage Creek Group successfully arranged $11,750,000 in bridge-to-permanent financing for a recently constructed 96-unit garden style market rate apartment asset in Salem, OR. The loan proceeds were used to retire the senior construction loan, fund an interest reserve, and cover closing costs. The financing included 12 months of of interest only during lease up and grants the sponsor a cash-out option upon stabilization. The project was 50% occupied at application. Application to closing was 40 days. SCG had previously arranged an 83% LTC construction loan for the asset in 2018.

The COVID disruption caused many lenders to shy away from lease up risk despite strong market fundamentals and demand drivers. SCG identified a capital source that clearly understood both the quality of the asset and the exceptionable ability of the sponsor to execute the lease up and stabilize the property.  

Bridge Rate: WSJ Prime + 150 bps Floating

Perm Rate: 5-yr TCM + 275 bps

LTV: 75%/LTC: 85%

Amortization: 12 months IO then 30 years

Term: 10 years