A repeat client of Fidelis was in contract to purchase two commercial multi-tenant office buildings, 100% leased, totaling approximately 23,400 rentable sq.ft. located in Bonita, CA. To limit the cash down payment, the borrower needed a creative broker to arrange bridge financing with a mezzanine loan.
The purpose of the bridge financing was to allow time to raise rents, add a new cell tower lease, and stabilize the property at a higher value in preparation for refinancing with a conventional lender.
Through Fidelis’s network of lenders, we arranged a bridge loan for the borrower to purchase the property for $5,700,000 or 61% of the purchase price and arranged mezzanine financing where the borrower provided additional collateral, other than the subject property, limiting the cash down payment into the project.
Fidelis Private Fund arranged a 1st Trust Deed purchase bridge loan for $3,450,000 at less than 61% LTV, not including the mezzanine loan.
(The bridge loan was not funded by Fidelis, but arranged by John Lloyd/Cornerstone Commercial Mortgage acting as the broker on the transaction)
The Fidelis Private Fund helped the borrower arrange some creative short-term bridge financing to purchase the property where there is potential to raise rents and immediately realize added value.
Our goal is complete customer satisfaction, and if the loan request doesn’t fit Fidelis Private Fund as a direct lender, we find the right lender with the best loan terms for the borrower.
Another transaction where Fidelis Private Fund is helping our clients achieve their financial goals.