Participating Bridge Loan Program

Providing financing solutions

Opportunistic Bridge
Loan Program
Participating Bridge
Loan Program
Core Bridge
Loan Program
Core-Plus Bridge
Loan Program
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.

Participating Bridge Loan Program

Program Description

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.

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

Timing to Close

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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