Filling the Gap Between Banks & Private-Money, Two Loans in L.A. and Concord Exemplify Squeezed Borrowers
San Mateo, CA (Feb. 24, 2016) — Redwood Mortgage, a family-owned private lender founded in 1978, announced today a Middle-Market Bridge loan program designed to meet the under-served commercial real estate borrower segment that feels stuck among the offerings of traditional banks and other lending sources. For loan amounts generally from $500,000 to $7.5 million, borrowers have had difficulty getting competitive rates — until now.
Redwood Mortgage’s Middle-Market Bridge is currently lending in the upper-mid single-digit interest rates for that sector. At those competitive rates, the Middle-Market Bridge loan product can solve the problem borrowers face with traditional lenders who have tightened lending parameters in recent years and who also may lack the capacity for the wave of refinancing on maturing commercial and multi-family loans.
Redwood Mortgage’s Middle-Market Bridge loan program features:
- $500,000 to $7.5 million range of loan amounts, or higher depending on circumstances
- competitive single-digit loan rates
- no prepay penalty
- loan-to-values of up to 65% on acquisitions or refinances
- for Multi-Family, Mixed-Use, Office, Retail, Self-Storage, Warehouse, Commercial Condo property
- loans offered by an established lender that has been in business for over 37 years and presently managing more than $350 million in assets
“Borrowers report that it’s incredibly difficult getting a competitive middle-market loan, whether to renovate a property, refinance from a CMBS loan coming due, or other situations that require flexible, customized debt,” said Steve Belleville, Director of Sales and Marketing for Redwood Mortgage. “Our Middle Market Bridge loan program is perfect for borrowers who need tailored loans. We’re an established, trusted, results-oriented lender that’s been active in this area for years but now have a formalized and dedicated program.”
Redwood Mortgage’s Middle-Market Bridge loans are highly competitive and supported by the firm’s deeply experienced team, he said. The firm has loaned nearly $2 billion since its founding in 1978, currently manages $350 million in assets and expects to place over $100 million in capital over the next year.
Two recent Middle-Market Bridge loans include:
- In Concord, CA near San Francisco, Redwood Mortgage assisted a borrower with a loan above Redwood’s normative middle-market range because of the quality of the property and the loan underwriting. The $14 million loan on a well-located retail center closed at an upper-mid single digit interest rate.
- In Los Angeles, Redwood Mortgage provided a $475,000 loan over a two-year term for a well-located warehouse which includes ancillary office space at an upper-mid single digit interest rate.
“Redwood Mortgage provides more nimble capital than traditional sources,” said Vice President, Lori Randich. “We specialize in opportunity-capital in real estate lending, where borrowers have a particular need or challenge that typical lenders often can’t accommodate.”
Redwood Mortgage’s borrowers run the gamut of owners renovating property in the path of growth; private high-net-worth individuals who are already in real estate or are diversifying their stock-heavy portfolios with property; borrowers with partnership and tax-motivated events such as Starker exchanges; and real estate components of trust-and-estate strategies, among others.
About Redwood Mortgage
Founded in 1978, Redwood Mortgage is a second-generation family-held firm with over 35 years of experience in arranging and funding mortgage loans in California. Based in San Mateo, CA, Redwood Mortgage and its affiliates have arranged nearly $2 billion in loans and currently manage a portfolio of over $350 million. Redwood Mortgage provides tailor-made funding solutions secured by California residential, multifamily and commercial properties. The firm differentiates itself from traditional lenders with its single level of decision-making, no prepayment penalty on loans, its long-held expertise in commercial loan transactions and its in-house document production and funding. For more information, visit www.redwoodmortgage.com