Commercial Bridge Financing & Hard Money Loans
|PacSun Capital provides first position bridge loans and commercial bridge financing on a wide array of asset classes and property types. Our bridge loan program focuses on providing short term bridge capital to value added and opportunistic commercial real estate deals. Qualified sponsors and operators that need bridge financing for these types of opportunities should verify that their bridge loan requirements fit our lending parameters before requesting a loan.|
|A few specific criteria that are often over looked by some borrowers include LTV, asset location, and current cash flow. The bridge loans that we fund are contingent on an assets current performance and operating income. In addition to valuing a deal based on the current net income we also concentrate on providing bridge loans in Tier 1 markets which are strong core metropolitan markets or their close proximity sub-markets.|
|Take a moment to review the bridge loan lending parameters outlined below. Be sure that the asset for which you are requesting bridge financing meets these criteria and most importantly has a current operating income that supports the LTV.|
|We understand that in this business very few funding requests will fit neatly in a box and therefore we look forward to working with you to identify a unique deal structure that can benefit from our bridge loan program. Feel free to contact us to discuss your bridge loan needs or use the short submission form on the right side of our website to send us a bridge loan request.|
COMMERCIAL REAL ESTATE (Funding & Asset/Note Acquisition):
Minimum deal size: $2mm, sweet spot $10mm – $30mm
Geography: Tier 1 Core Markets across all contiguous United States.
Asset Type: Multi-family, Student Housing, Self Storage, Office, Retail, Mixed-Use, Mobile Home Parks, Hotel/Motel, Warehouse/Distribution
We focus on providing capital for the value add play and analyze deals based on current NOI. It is recommended that qualified sponsors/operators submit bridge loan requests via the forms on our website or email a brief introduction to the deal with the data mentioned below.
IMPORTANT: We want to see that there is a qualified sponsor/operator in place to whom we can provide the bridge loan and that the asset is in a Tier 1 market, or in a reasonable proximity. Before contacting us be sure to verify that your request meets these criteria as well as fully addresses each data point listed below. Thank you.
We need the following to consider looking at a request:
- “Current NOI” – We max out at 75% LTV based on income and given the current market that may be a stretch. We always provide first position debt so there are ways to structure a deal that works even with a tight capital structure, but in respect to providing a bridge loan to take out the entire current debt we won’t go above 75%. The deals that are getting done today are all about shuffling the debt around and creative deal structure.
- “Occupancy” – When reviewing occupancy keep in mind we prefer the value added deal when it comes to providing bridge financing. However, if an asset is stabilized and is being offered at higher cap rates with seller financing or some form of assumable debt then we’d consider purchasing the asset principally and therefore it may be considered for acquistion as well as funding.
- “Target NOI” (Pro-Forma)
- “Current Capital Structure” – Including borrower equity and mezzanine debt as well as any preferred equity or subordinated equity.
- “Price Expectation” – We don’t waste time on deals where the seller isn’t communicating or doesn’t have a clear understanding of their price expectations. We don’t just “write offers” or provide “LOI’s” for deals we don’t have intentions of funding.
- “Brief Narrative” – What’s the background on the deal. The story is often times what makes a deal. Bad sponsor, maturity default, bankruptcy, litigation,… the soap opera or country music song. Also, is the current debt assumable or is seller financing available.
If all the criteria is there and the deal seems to potentially fit our wheelhouse then please proceed with the submission as we look forward to hearing from you and developing an ongoing successful relationship.