Recently Funded | $350K – Construction Completion Bridge – Commercial Real Estate Loan, CT | $350

$350K CONSTRUCTION COMPLETION BRIDGE LOAN FOR CT REAL ESTATE INVESTOR

Second lien bridge financing allows an experienced developer to complete construction on a luxury single family property in Fairfield County, CT

An experienced real estate investor was mid-project on a luxury single family home renovation, but faced construction delays and cost overruns due to COVID.

In the face of this uncertainty, the bank lender was unlikely to increase the construction loan. Speritas Capital arranged a construction completion bridge loan, secured by a second mortgage (second lien) on the property, which closed in 10 days.

The Loan Need & Challenges

Due to covid-19 time delays and increased costs, project costs were higher than anticipated, and exceeded the financing available from the senior bank lender.

The borrower was reluctant to ask the bank for an increase because she was concerned that it would raise red flags and that the senior lender might not allow additional draws on the facility.

Speritas Recommends a 2nd Lien Construction Completion Bridge Loan

This experienced investor had worked with Speritas Capital on other deals so they came to us for help.

Speritas Capital knew that it would be difficult to find another lender to help complete this project. Most commercial real estate lenders do not provide construction completion financing when the project has experienced delays and overruns, no matter what the circumstances.

Refinancing the entire bank loan with a cash-out option would have been expensive for a construction completion loan. So we recommended a second lien bridge loan.

Speritas Capital Partners helped an experienced commercial real estate investor complete construction using a second lien bridge loan2nd Lien Construction Completion Bridge in action

The Client Says…

“Speedy! Speritas Capital Partners quickly found the right lender and brought this to close in just 10 days.”

 


Read More about the Strategic Use of  BRIDGE LOANS


Finding the Right 2nd Lien Construction Completion Bridge Lender

Speritas capital assessed the situation and determined that the second loan, combined with the first, would result in a relatively low combined loan-to-value ratio. This gave us confidence that we could find the right lender.

From our deep lender network, Speritas was able to bring a local alternative lender who would consider this specific type of scenario – an experienced investor and strong underlying market value. This lender knew the market well and had provided other second-lien loans.

About this Construction Completion Bridge Loan

LOAN AMOUNT:
$350K

LOAN TYPE:
2nd LIEN BRIDGE LOAN

LOAN TERM:
12 MONTHS

RATE:
CUSTOM

LENDER: ALTERNATIVE NONBANK

CLOSED IN: 10 DAYS


Conclusion – Post Finance Update

Speed was of the essence for this investor so that this luxury development project could keep to the construction timeline.

This construction completion bridge loan closed in 10 days, allowing the investor to access capital quickly, complete construction, and get on the spring market.


Are you looking for a strategic partner to advise you on your next BRIDGE LOAN financing challenge?

Learn More About our Bridge Loan Advisory Capabilities

The Speritas Capital team is always happy to hear your story, learn more about your financing needs and answer your questions. And we never take an up front fee. Contact Speritas Capital Partners today!

Jeff Bardos, CEO Speritas Capital Partners

 

Jeff Bardos, CEO – MEET JEFF!

The Speritas team brings our 30+ years of banking experience and our transparent, strategic approach to every client and every deal, both large and small.