Beverly Hills, CA — September 9, 2020—BridgeCore Capital, Inc. today announced that it has closed an $8 million loan on an historic office building in downtown Cleveland.
The borrower required a bridge loan to purchase the building, currently 42% occupied, with plans to convert it into a 436-unit, Class A multifamily apartment property, with a complementary mix of office and retail.
BridgeCore’s 12-month term, including two six-month extension options, with a fully funded reserve, is providing the borrower the necessary time to complete the pre-development plan and position for an exit with construction financing.
“BridgeCore’s competitively structured loan terms allowed our client to quickly execute on the purchase of a transitional asset at a time when conventional financing has not been readily available because of the COVID-19 economic environment,” Elliot Shirwo, BridgeCore founder and principal, said.
The loan term included a fully funded reserve for interest, real estate taxes and insurance; a pay-rate and accrual to lower the amount of interest reserve; and limited recourse to $2 million, subject to standard carveout and debt service guarantees.
BridgeCore employed its decades of experience and innovative strategies, solving the borrower’s array of unique transactional and property challenges and securing highly competitive loan terms to facilitate and consummate the purchase.
About BridgeCore Capital
BridgeCore provides short-term loans ranging from $2 million to $30 million on commercial real estate in prime U.S. markets, including origination of senior debt and purchase of non-performing loans secured by first trust deeds. Additionally, borrowers throughout the nation can take advantage of BridgeCore’s unique “Pay-Rate Protection” product, which reduces monthly payments as low as 4.99% per annum (“Pay-Rate”) for the entire loan term, deferring the remaining interest until loan pay-off, without compounding interest.