Bridge


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Bridge and Mezzanine Loans

[ HUD Mortgages ] [ Hard Money ] [ Bridge and Mezzanine Loans ]

Bridge Loans are typically short-term loans that are generally meant to allow borrowers to position their properties to enable them to obtain more permanent financing. Most often, Bridge Loans are for no more than 5 years, and carry floating rates instead of fixed rates. Since these loans are not permanent, Bridge Loan lenders are concerned about the means of repayment. Situations that might lend themselves to a Bridge Loan include:

A property is not at stabilized occupancy, but should be after renovations.
A property has not performed up to expectations, but after some sort of repositioning the borrower hopes to increase the cash flow enough to obtain a larger permanent loan.
A borrower is not interested in locking into a long-term, fixed-rate obligation, and wants the ability to prepay the loan when the time is right.

Mezzanine Loans are meant to plug the gap between what a permanent loan lender is willing to lend and what the borrower is requesting. Also, a Mezzanine Loan could be used where there is an existing loan, and the borrower either cannot or does not want to prepay the loan, but would like to increase the leverage. Mezzanine Loans are generally no longer than 5 years, and are usually self-amortizing out of existing cash flow.

If you or your client is in need of either of these types of loan, please give CFG a call and we will try to help.

Judd A. Volk, President
60 Cutter Mill Road Suite 402 Great Neck, NY 11021
(516) 466-0550 Fax: (516) 487-5944

All transactions where we act as a commercial mortgage broker will be handled under the letterhead of GCP Capital Group LLC