BridgeCore Capital today announced it has closed a $6,500,000 refinance of a 36-unit apartment building on the border of the Koreatown and MacArthur Park neighborhoods in Los Angeles.
The borrower needed the funds to refinance a matured loan and to pay outstanding property taxes. BridgeCore structured the loan with a six-month prepaid interest reserve to cover the shortfall between net operating income and BridgeCore’s debt service and to avoid payment default by the borrower during the loan term.
To solve the borrower’s cash requirements from the refinance, BridgeCore increased its loan proceeds by $100,000 from the original loan amount set forth in its term-sheet in exchange for cross-collateralizing a subordinate lien position on a non-owner-occupied single family home in Hesperia, Calif.
The borrower’s exit strategy is either to refinance with a conventional loan, or sell the property within the next 12 months.
BridgeCore coordinated the transaction process with an exceptional mortgage advisory team and title company to close in an expedited time-frame and enable the borrower to avoid foreclosure by the prior lender.
BridgeCore harnessed its comprehensive resources and experience to provide highly competitive loan terms and to solve the borrower’s critical timing challenge.
About BridgeCore Capital
BridgeCore provides bridge loans on commercial and non-owner occupied residential real estate in the U.S., including origination of senior and junior debt and purchase of non-performing loans secured by first trust deeds. Additionally, borrowers throughout the nation can take advantage of BridgeCore’s “Middle Market Loan Program,” which is an alternative to traditional lifeco financing. This program provides borrowers with flexible pre-pay, interest only, non-recourse, and fixed-rate financing with 2-to 5-year terms for loan sizes ranging from $10M to $30M+.
For more information, visit www.bridgecorecapital.com.
