Multifamily Bridge Loan – Cambridge, MA
An experienced Boston-area investor had just completed construction on a multifamily property in Cambridge, Massachusetts. He needed short-term bridge financing to pay off the construction loan and stabilize the property for long-term take-out.
Lima One Capital provided the needed financing with an interest-only bridge loan, giving the borrower a streamlined underwriting process and financial flexibility in terms of pre-payment penalties. This allowed the borrower to focus on getting new tenants at a time of high market demand. The flexible prepayment option allows the borrower to stabilize the property as quickly as possible and then move to his ultimate goal of permanent bank financing.
Throughout the process, Lima One had the borrower’s strategic interests in mind and recommended a multifamily bridge loan that helped achieve his goals. The end result was a borrower ready to move as quickly as possible to his ultimate long-term strategy for the property.
Multifamily Bridge Loan By the Numbers
- Loan Purpose: Refinance of Stabilized Property
- Loan Amount: $1.8 million
- Appraised Value: $2.8 million
- Loan-to-Value Leverage: 65%
- Loan Term: 13 months
- Interest Only