Dixon Link Capital successfully arranged $1.15 million in bridge financing for a multi-tenant office property in Jacksonville, Florida.
Loan proceeds were used to refinance the borrower’s existing mortgage, set to mature soon, fully fund a 12-month interest reserve, and cover all transaction and closing costs. This short-term bridge loan helped the borrower, whose family has owned the property for almost 40 years, avoid a steep balloon payment and provided additional time to lease up the remaining available office units – and renew leases for existing tenants – at market rate.
Transaction Highlights
The Challenge: Looming Loan Maturity in Tough Market Conditions
Time was of the essence to refinance this established multi-tenant office property, as the borrower’s mortgage was set to mature soon. However, their current lender was unable to refinance the existing note due to their reduced credit appetite for office assets – a sentiment widely shared by traditional bank lenders in today’s market. Even though the property’s occupancy and net operating income had been drastically improving over the previous 18 months thanks to the efforts of the borrower’s commercial realtor, numbers still fell just short of the bank’s minimum DSCR required. The borrower needed a financing solution to bridge this timing gap – and fast.
The Solution: A Bridge Loan with a Strong Exit Plan
Through strong relationships with a nationwide network of non-bank lenders, Faith Link, Managing Partner at Dixon Link Capital, helped the borrower swiftly secure and review multiple competitive term sheets. Of these options, the sponsor ultimately chose an industry-leading private lender based in Davie, Florida.
The lender provided a $1.15 million bridge loan, equal to 45% of the property’s as-is value, for a 24-month term with interest-only payments. This loan structure allows the borrower ample time to lease up the final remaining office suites at market rates and stabilize the property to be prepared to refinance back into permanent, conventional financing.
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At 45% LTV, loan proceeds refinanced the borrower’s existing mortgage, pre-funded a 12-month interest reserve, and covered all financing and closing costs. Moreover, the lender and Ms. Link worked diligently to ensure the borrower did not have to bring additional funds to the closing table. In fact, the borrower was reimbursed at closing for all third-party reports paid for out-of-pocket!
For Challenging, Time-Sensitive Deals, Dixon Link Capital Delivers
Whether a borrower is running low on time, funds, or both – Dixon Link Capital has the expertise, resources, and relationships to source creative, competitive financing solutions for commercial real estate transactions. Ready to close your next CRE deal? Get started here.
Dixon Link Capital is a commercial mortgage broker based in Jacksonville, Florida, specializing in commercial real estate. We are proud to be “Your Link to Lenders!“
