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