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 85% loan-to-cost Up to 80% of stabilized value Up to 95% of estimated take-out financing |
Minimum DSCR at Closing | Minimum going-in DSCR equal to 1.10x (assuming a 5.5% interest rate and 30 year amortization) |
Minimum DSCR based on Stabilized NOI: | Minimum stabilized DSCR equal to 1.25x (assuming a 5.5% interest rate and 30 year amortization) |
Interest Rate | LIBOR + 4.50% – 5.50% |
Index Floor | 50 bps 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) |
Lender Origination Fee |
> 24 Month Term – 1.0%
|
Exit Fee | 1% exit fee – exit fee may be reduced or waived if Bellwether provides take out permanent loan |
Amortization | Interest only |
Prepayment Terms | Loan is open to prepayment, subject to any applicable exit fee, after the 12th month of the loan term |
Good Faith Deposit/Processing Fee | Typically 1% / $5,000 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 in some situations |
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 5.5% interest rate and 30 year amortization) |
Minimum DSCR based on Stabilized NOI: | Minimum stabilized DSCR equal to 1.30x (assuming a 5.5% interest rate and 30 year amortization) |
Interest Rate | LIBOR + 5.50% – 6.00% |
Index Floor | 50 bps LIBOR floor |
Term |
Up to 24 months, extension option available (0.5% – 1% extension fee’s) (Longer term loans can be considered) |
Lender Origination Fee |
> 24 Month Term – 1.0% paid at closing |
Exit Fee | 1% exit fee – Exit fee may be reduced or waived if Bellwether provides take out permanent loan |
Amortization | Interest only |
Prepayment Terms | Loan is open to prepayment, subject to any applicable exit fee, after the 12th month of the loan term |
Good Faith Deposit/Processing Fee | Typically 1% / $7,500 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 |
Lending Programs