Bridge Financing for Short Term Acquisition and Development
Baron Financial Group actively provides developers and investors with
one of the most flexible, creative and competitive construction and
bridge loan programs in the United States. We arrange construction
and bridge loans for new construction projects, or for the comprehensive
renovation, repositioning and lease-up of existing properties.
With experienced real estate professionals and analysts we posses the ability to analyze complex transactions and gain an in depth understanding of the risks posed by the transaction. We are then able to develop workable solutions and create loan structures that adequately address these risks while meeting the needs of our borrowers.
Construction/bridge financing for the ground-up development of new commercial properties, or the renovation and repositioning of existing properties, for both pre-leased and speculative development. Loan structures, pricing, advance to cost ratios and recourse requirements are flexible and will be tailored to meet the needs and risk profiles of individual transactions.
| Property Types: |
Apartments, Condominiums, Office, Retail, Industrial, Mixed-Use, and Hotels. |
| Loan Sizing : |
$10 Million to $150 Million + (essentially, no maximum limit). |
| Loan to Value: |
75% on most property types; 65% on special purpose and hotels. Maximum Loan to Cost: 75% to 85% (up to 100% on pre-leased projects). |
| Loan Term: |
Typically 12 to 24 month interest only term, with extension options when appropriate. |
| Amortization: |
NONE: Loans typically structured with holdbacks for funding of all renovation and/or construction costs, tenant improvements, leasing commissions, and interest carry until stabilization, with monthly draws as costs are incurred. |
| Interest Rate: |
Interest only at prime plus 400 to 600 basis points, depending on project type and quality of property. |
| Debt Service: |
Not Applicable. |
| Prepayment: |
Not Applicable. The term is the lock-out Period. |
|
