Lending Programs

TurnCap is your direct lending partner for commercial real estate financing, specializing in bridge to perm multifamily and commercial loans.

Bridge to Perm – Multifamily 

TurnCap’s bridge to perm loan program is designed to add value to Borrower’s transactions by privately funding loans in situations where conventional and institutional lenders are unable to quote. 

Loan Amount $10 – $45 million (Higher amounts considered on a deal by deal basis)
Maximum Loan Amount/Loan-to-Value Up to 80% loan-to-cost
Up to 75% of stabilized value
Up to 95% of estimated take-out financing
Minimum DSCR at Closing Minimum going-in DSCR equal to 1.00x (assuming a 30 year amortization)
Minimum DSCR based on Stabilized NOI: Minimum stabilized DSCR equal to 1.25x (assuming a 30 year amortization)
Interest Rate Floating rate, specified as a competitive market rate spread over a LIBOR floor
Index 30-day LIBOR with a market rate LIBOR floor
Term Up to 3 years, plus one (1), twelve (12) month extension available with an extension fee (longer term to be considered on a case-by-base basis)
Amortization Interest only
Lender Origination Fee 1%
Exit Fee 1% exit fee – exit fee shall be reduced if Bellwether provides permanentfinancing
Prepayment Terms

Loan is open to prepayment, subject to any applicable exit fee and minimum interest requirement

Minimum Interest

12 months

Good Faith Deposit/Processing Fee

Typically 1% good faith deposit and $7,500 processing fee both due at Application (reduced good faith deposit considered for larger transactions)

Recourse

Non-Recourse with standard carve-outs available; will require full recourse or completion guaranty for capex

Reserves

Lender may require Borrower to fund upfront interest reserves or capital improvement reserves at closing

Escrows

Tax and insurance shall be collected monthly; ongoing replacement reserves to be determined based upon property condition report

Bridge to Perm – Commercial

TurnCap is your direct lending partner for commercial real estate financing, specializing in bridge to perm and alterative financing structures.

Loan Amount

$5 – $30 million

Property Types Storage, Industrial, Office, Retail
Maximum Loan Amount/Loan-to-Value Up to 75% loan-to-cost
Up to 70% of stabilized value
Up to 85% of estimated take-out financing
Minimum DSCR at Closing

Minimum going-in DSCR equal to 1.15x (assuming a 30 year amortization)

Minimum DSCR based on Stabilized NOI:

Minimum stabilized DSCR equal to 1.30x (assuming a 30 year amortization)

Interest Rate

Floating rate, specified as a competitive market rate spread over a LIBOR floor

Index

30-day LIBOR with a market rate LIBOR floor

Term

Up to 24 months, extension option available (Longer term loans can be considered)

Amortization

Interest Only

Lender Origination Fee 1.0%
Exit Fee

1% exit fee – Exit fee may be reduced if Bellwether provides permanent financing

Prepayment Terms

Loan is open to prepayment, subject to any applicable exit fee and minimum interest requirement

Minimum Interest

18 months

Good Faith Deposit/Processing Fee

Typically 1% good faith deposit and $10,000 processing fee both due at Application (reduced good faith deposit considered for larger transactions)

Recourse

Typically Full Recourse. Non-Recourse with standard “bad-Boy” provisions decided on a deal by deal basis (Completion guarantee required for CapEx)

Reserves

Lender may require Borrower to fund upfront interest reserves or capital improvement reserves at closing

Escrows

Tax and insurance shall be collected monthly; ongoing replacement reserves to be determined based upon property condition report

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