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Prime Series Multifamily Bridge Loan Program

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Bridge Loans for Apartment and Multifamily Properties

Crefcoa provides bridge loans for apartment buildings and other multifamily property types for the acquisition, rehab or repositioning of properties that do not operate at stabilized levels in order to be eligible for permanent financing. The Prime Series program is a competitively priced option for experienced sponsorship with properties expected to meet permanent financing criteria within 18 months. Prime Series is not a hard or soft equity program.
  • LIBOR based pricing
  • Competitive fee structure (entry and exit)
  • Non-recourse
  • Interest reserve available
  • Up to 80% LTV based on stabilized value
  • Minimum and no in-place DSCR requirements
  • No prepayment premium after six months
  • Available in primary and secondary markets
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Prime Series Multifamily Bridge Loan Program Guidelines

Property Types
  • Apartment buildings
  • Student housing
  • Affordable housing
  • Seniors housing
  • Multifamily mixed-use
Eligibility Single or multi-asset portfolios.
Purpose Available for the acquisition or refinance of multifamily properties that do not meet the minimum requirements for permanent financing. Properties that are in lease-up, being repositioned or under rehabilitation and value add opportunities.
Bridge Loan Size Multifamily bridge loans from $5 million with no maximum - smaller loans considered on an exception basis.
Economic Occupancy No minimum economic occupancy required.
Minimum DSCR
  • Stabilized forecasted DSCR of 1.25 - interest rate used to determine DSCR is based on current permanent rate financing plus an additional spread of 100-150 bps.
  • No in-place DSCR requirements for most properties and sponsors. A minimum in-place DSCR may be required for markets, properties or sponsors that exhibit higher risk.
  • In place DSCR less than 1.05 requires an interest reserve.
Maximum LTV Up to 80% LTV based on stabilized value. Leverage intended to be consistent with permanent financing levels at acquisition.
Amortization Interest only.
Interest Rate
  • LIBOR based floating rate.
  • Spread above LIBOR (450-550 bps).
  • LIBOR floor rate equal to LIBOR rate at loan inception.
Term 18 months with two six month extensions.
Prepayment Penalty Open to prepayment after six months.
Guarantee Non-recourse for most loans subject to standard carve-outs.
Assumable Yes, subject to lender approval.
Supplemental Loan Available 12 months from date of closing of first loan.
Reserves
  • Taxes and insurance.
  • Deferred maintenance, repairs, major rehab costs.
  • Interest reserve for may be required for properties with in-place DSCR below 1.05.
Fees
  • 1%-3% commitment fee.
  • 1% exit fee (waived if refinanced through Crefcoa).
  • 1% extension fee.
  • Third party reports (TBD).
  • Legal (TBD).
  • Underwriting (TBD).
Subordinate Debt Not permitted.
Borrower Single asset single purpose bankruptcy remote U.S. entity.
Sponsor Requirements Strong experienced owner-operators with a proven track record in multifamily housing. Prefer sponsorship with comparable multifamily experience with repositioning, rehab or construction.
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Program availability -- including LTV, DSCR, and loan size -- may vary depending on property location, economic conditions, exposure, and other variables that may negatively influence risk. Program guidelines, rates, terms and fees are subject to change.
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What You Need to Know

  • Prime Series Multifamily Bridge loan program requires strong experienced sponsorship.
  • Minimum sponsorship net worth and personal liquidity requirements.
  • Sponsorship must have a proven track record in multifamily housing with a preference towards sponsorship with local market experience or completed rehab, construction or repositioning of comparable sized assets.
  • Properties located in secondary and tertiary markets are eligible.
  • Syndicated deals require extra scrutiny.
  • Take out is based on Agency, HUD or CMBS programs.
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Equity Series Multifamily Bridge Loan Program

For sponsors, properties or markets that don't meet the minimum eligibility requirements for our Prime Series program, Crefcoa offers a soft and hard equity option through the Equity Series Bridge program. Borrowers can expect higher rates and fees, but more flexibility with sponsorship and property requirements.
  • Sort or hard equity program
  • Interest rates start in the 8% range
  • Personal recourse required
  • Can close in less than 15 days
  • 3%-5% commitment fee
  • No occupancy or DSCR requirements
  • Less emphasis on strength of sponsorship and more emphasis on asset
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