Alliance Business Capital offers Bridge Loans through a handful of Lending Partners which include Banks as well as Private Firms.
The minimum Bridge Loan amount is currently $1 Million depending on the Lending Partner with some Lenders having a $2 Million minimum loan amount.
Alliance works hand in hand with our Bridge Lending Partners to secure our clients financing in a timely manner.
Please see below for typical Bridge Loan terms.
Typical Bridge Loan Terms
Primary Property Types:
Multifamily, Office, Retail, Light Industrial, Mixed-Use
Secondary Property Types:
Self-Storage, Student Housing, Hospitality, and certain Specialty Use Properties
Typical Loan Size:
Minimum Loan Amount of $1 Million, however most investors require $2 Million minimum
Maximum Loan Amount is $40 Million under this program, higher loan amounts maybe available on a case by case basis
Transitional, Value-add and Event Driven
Construction Loans considered on a case by case basis
Typically 2-5 years
Leverage is dependent on Property Type, Location and Overall Situation but typically runs in the 65% to 80% range with 80% including mezzanine debt and available only on a case by case basis
Recourse and Non-Recourse Loans are available, however most investors primarily offer Non-Recourse Loans with except for a bad-boy carveout
Prepayment Penalties vary among investors, however there is typically some sort of prepayment penalty such as a guarantee of a minimum amount of interest
Debt Service Coverage:
None, Partial or Non-Cash Flowing Properties will all be considered
Typically Interest Only, however Amortization can be structured on a case by case basis
Alliance Business Capital charges an Origination Fee ranging from 1% to 3% of the final loan amount payable through loan proceeds at loan closing.
Additionally most investors will have an Origination Fee of 0% – 3% determined on a case by case basis
Alliance Business Capital has an engagement/processing fee of $1500 – $2500 which is non-refundable
Additionally you will be required to cover any/all third party reports required by investor as well as any due diligence fees that the investor may have. Any/all closing costs are the borrowers responsibility.
Alliance Business Capital will function as a Intermediary/Advisor on all Bridge Loan transactions. We do not fund loans directly and depend on our Bridge Lending Partners for funding of all Bridge Loans originated by Alliance Business Capital.
We appreciate the opportunity to assist you with all of your Bridge Loan needs.