BridgeCore Capital, Inc. has closed a $1,300,000 refinance of a multifamily complex in Oklahoma City, Oklahoma, the company announced. The transaction highlights the growing role of bridge lenders in providing tailored capital solutions for value-add real estate projects, particularly in secondary markets where borrowers often face tighter lending conditions from traditional banks.
The borrower required cash-out proceeds to fund improvements to the subject property and another multifamily property in the same market, establish a 9-month interest reserve, and provide additional working capital. The business plan is to complete the improvements to the subject property and sell it within the 18-month loan term. This strategy is common among real estate investors seeking to force appreciation through targeted renovations and then exit via sale before the loan matures.
To facilitate the improvements, BridgeCore structured a future-funding reserve, with documentation of the use of funds required only for the initial advance. This structure provided the borrower with greater flexibility and efficiency in accessing the remaining improvement funds, reducing administrative burdens and allowing for quicker deployment of capital as renovation milestones are met. Such flexibility is critical in bridge lending, where timing and execution can significantly impact a project's profitability.
BridgeCore also worked with the borrower to structure the loan with recourse limited to its fund entity, a move that shields the borrower's other assets from potential liability. This limited recourse feature is particularly attractive to sponsors who want to mitigate risk while still pursuing opportunistic investments. By leveraging its extensive experience, in-house capabilities, and flexible capital base, BridgeCore addressed a number of unique structural requirements while delivering highly competitive financing terms.
The closing involved close coordination with the trusted mortgage advisory team, sponsor, and title company to ensure an efficient process and on-schedule closing. This collaborative approach underscores the importance of strong relationships in executing complex transactions, especially when multiple properties and reserve structures are involved.
The deal matters because it illustrates how non-bank lenders like BridgeCore are filling a gap left by conventional lenders, which have become more cautious amid economic uncertainty. For borrowers in markets like Oklahoma City, where multifamily fundamentals remain solid but capital can be harder to secure, bridge financing offers a viable path to unlock value and achieve business plans.
BridgeCore provides bridge loans on commercial and non-owner occupied residential real estate in the U.S., including origination of senior, junior and mezzanine debt and preferred equity. Additionally, borrowers throughout the nation can take advantage of BridgeCore's "Bridge Loan Program," which provides flexible pre-pay, interest only, non-recourse, and floating-rate financing with one- to three-year terms for loan sizes ranging from $15M to $50M+. For more information, visit www.bridgecorecapital.com.
The announcement was originally distributed via NEWMEDIAWIRE.
