Bridge Lending
Bridge loans are a type of short-term financing that provide borrowers with the funds they need to purchase or refinance a variety of commercial properties while they work to secure permanent financing from government-sponsored enterprises, commercial mortgage-backed securities (CMBS) lenders, or balance sheet lenders, i.e., LifeCos, banks, and credit unions.
These loans typically have terms ranging from six months to three years and are designed to provide borrowers with the necessary time to prepare their property for long-term financing. This might include construction, making necessary repairs or renovations, increasing occupancy rates, or improving cash flow.
At Centum Capital, we specialize in advising clients on effectively utilizing bridge loans as part of their commercial real estate investment strategy. Our expertise in navigating the complexities of bridge financing ensures that our clients receive tailored guidance to maximize the benefits of these loans. With our in-depth knowledge of the components a bridge loan comprises coupled with our ability to connect clients with a variety of lenders, Centum Capital empowers commercial real estate investors to leverage bridge loans as a valuable tool for achieving their investment goals.
Debt Fund
Debt fund loans are a flexible and efficient financing option provided by private investment funds, designed to meet the unique needs of all commercial real estate asset classes. These loans offer an alternative to traditional bank financing, featuring customized loan structures and faster approval processes. By pooling capital from multiple investors, debt funds can quickly provide the necessary funds for a wide range of real estate projects.
The primary advantages of debt fund loans include flexibility, speed, customization, and higher leverage. These loans can be tailored to support various commercial real estate ventures, including office buildings, retail centers, industrial properties, multi-family residential units, and specialized developments like hotels and healthcare facilities. With streamlined approval processes and less bureaucratic red tape, debt fund loans enable timely acquisitions, developments, and renovations.
Mini-Perm
Mini-perm loans are short- to intermediate-term financing solutions, typically ranging from 3 to 7 years, used in commercial real estate to bridge the gap between construction financing and long-term permanent financing. They are particularly beneficial for various asset classes, such as office buildings, retail centers, industrial properties, multi-family residential units, hotels, healthcare facilities, and specialty properties like senior living communities and self-storage facilities. These loans provide the necessary interim funding to allow properties to lease up, stabilize occupancy, and establish consistent cash flow before transitioning to permanent loans.
The key features of mini-perm loans include their short to intermediate terms, often featuring interest-only periods to reduce the financial burden on borrowers. They offer flexible repayment structures to match the cash flow needs of the property and are designed with the intent of refinancing into long-term permanent loans once the property is stabilized. This flexibility makes them adaptable to the specific needs of different asset classes, ensuring that properties have the financial support they need during their critical stabilization periods.
Bridge-to-Agency
The Bridge-to-Agency product offers a seamless and flexible financing solution designed to transition multifamily properties to permanent agency financing. This short-term, interim loan product is perfect for borrowers seeking to acquire, reposition, or stabilize a property before securing long-term financing through Fannie Mae, Freddie Mac, or HUD programs.
Key features of the Bridge-to-Agency product include competitive floating interest rates, interest-only payment options, and terms ranging from 6 to 36 months. This product provides the necessary capital to address immediate property needs, such as renovations or lease-ups, enabling owners to enhance property value and occupancy rates. Once the subject property meets the necessary performance benchmarks, we facilitate a smooth transition to permanent Agency financing, ensuring long-term stability and success.
Lenders for multifamily bridge-to-Agency loans often waive exit fees when the borrower refinances into a permanent loan with a GSE lender, assuming the bridge lender is also licensed to provide Freddie Mac and Fannie Mae executions. This can save borrowers thousands of dollars in fees and make it more attractive to refinance into a long-term loan once their property is at- or near stabilization. Unlike an Agency or CMBS transaction, bridge loans aren't securitized, but instead remain on the lender's balance sheet until maturity or the loan is paid off.
Ground-Up Construction
Ground-up construction loans are essential financing solutions designed to support the development of new commercial real estate projects from the ground up. These loans provide the necessary capital to cover the costs of land acquisition, construction, and related expenses, enabling developers to bring their visions to life. Whether you're constructing office buildings, retail centers, industrial facilities, multi-family residential units, or specialized properties like hotels and healthcare facilities, ground-up construction loans offer tailored funding solutions to meet the unique needs of each asset class.
The primary benefits of ground-up construction loans include flexibility, comprehensive coverage, and customized terms. These loans are structured to align with the project's timeline and financial requirements, offering phased disbursements that coincide with key construction milestones. This ensures that funds are available when needed, reducing financial strain and facilitating smooth project progression. Additionally, ground-up construction loans often come with interest-only payment periods during construction, helping to manage cash flow and financial planning effectively.