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Bridge Debt is Prominent at MBA

Bridge/Reposition Capital flooded this year’s Mortgage Bankers Convention in San Diego as new platforms emerged from heretofore stabilized capital providers. Programs run a wide gamut from extensive use conversion to “bridge light”, funding proceeds limited to tenant improvements. Rates and terms vary based on risk and level of rehabilitation although non-recourse opportunities to 80% of total cost are readily available at institutional single-digit yields. Traditionally transactions under $5,000,000 have been limited to regional recourse capital providers although several debt funds are now dipping down to $2,000,000 for national non-recourse product.