Participating Bridge

Loan Terms | Participating Bridge

Red Oak is debt fund sponsor that specializes in providing short-term, structured financing solutions on commercial real estate projects in primary, secondary and select tertiary markets. Our experienced team of capital markets and lending experts applies institutional-caliber underwriting standards to small-balance sheet loans.

Program description | Participating Bridge

Higher-leverage, floating-rate bridge lending program for commercial real estate assets that have a substantial value-creation component. The loan includes a larger equity component in exchange for a percentage of the value creation realized in the project at sale or refinance.

Why Consider This Program?

You’re seeking short-term funding to build, rehabilitate, reposition or stabilize an asset
You need financing with an equity component provided by the lender
You need flexible, non-permanent capital to build or implement a conversion, expansion or renovation on a core commercial real estate asset

Why Choose Red Oak?

Red Oak will take on a substantial amount of the project risk, while your loan is fully, or almost fully, financed in exchange for a participation in the property’s upside.

Bridge Loans

FHA/hud Loans

Multifamily & Affordable Housing

Senior Housing & Healthcare

Loan Terms | Participating Bridge

Red Oak is debt fund sponsor that specializes in providing short-term, structured financing solutions on commercial real estate projects in primary, secondary and select tertiary markets. Our experienced team of capital markets and lending experts applies institutional-caliber underwriting standards to small-balance sheet loans.

Program | Participating Bridge

Higher-leverage, floating-rate bridge lending program for commercial real estate assets that have a substantial value-creation component. The loan includes a larger equity component in exchange for a percentage of the value creation realized in the project at sale or refinance.

Why Consider This Program?

You’re seeking short-term funding to build, rehabilitate, reposition or stabilize an asset
You need financing with an equity component provided by the lender
You need flexible, non-permanent capital to build or implement a conversion, expansion or renovation on a core commercial real estate asset

Why Choose Red Oak?

Red Oak will take on a substantial amount of the project risk, while your loan is fully, or almost fully, financed in exchange for a participation in the property’s upside.

Bridge Loans

FHA/hud Loans

Multifamily & Affordable Housing

Senior Housing & Healthcare

Financing Parameters

Property Types

Multifamily, Industrial, Retail, Mixed Use, Hospitality, Office, Medical Office, Self-Storage, Manufactured Housing

Loan Amount

$1 Million to $10 Million

Loan Purpose

Acquisition, Refinance, Rehabilitation, Situational, Stabilization

Property Location

Primary and secondary markets only

Maximum LTV/LTC

Up to 75% LTV (based on stabilized value)
Up to 100% LTC (based on transaction underwriting)

Interest Rate

1-Month Term SOFR plus 700BPs (interest-only)

Loan Term

1 to 3 Years (fully extended)

Floor Cap / Rate Cap

The rate/floor will be set at the closing of the loan. No Rate Cap will be required

Extensions

Up to four (4) extensions up to 6 months each, at market extension fees

Origination Fees & Exit Fees

Market competitive fees based on the loan size, leverage, complexity and timing of the transaction

Exit Fees

15% to 25% participation in value creation (based on specific transaction) subject to returns

Lien Position

Senior Position (secondary financing prohibited)

Funding Structure

Full funding with holdback

Recourse

Non-recourse, other than standard “bad boy acts” or recourse structure for higher-risk transactions

Recourse

Typically 30 to 45 days from acceptance of LOI and receipt of deposits

Debt Service Reserve

Below 1.00x DSCR acceptable if supported by a debt service reserve (cash-flowing assets preferred)

Prepayment Penalty

Minimum interest, generally half of initial loan term

TI/LC and Future Advances

Future funding facility toward tenant improvements, leasing commissions and rehabilitation costs

Deposits

Expense deposit adequate to cover costs for third-party reports, legal fees and other customary due diligence or underwriting costs

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Oak Real Estate Partners' alternative investment platform is built around lending solutions that are financially engineered and structured to deliver alternative asset opportunities designed to align and support institutional investment objectives.

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