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Bridger's Private Capital Market Funds $16.5MM Refinancing of Mixed-Use Property
SAN FRANCISCO Bridger Commercial Funding announced today that it arranged $16.5 Million in term financing secured by 77,247 square foot retail and office property located in Artesia, California. Financing was obtained through Bridger’s private capital market, BankXchange Direct®, a proprietary consortium of over 300 different financial institutions that currently will provide new commercial real estate financing.
The loan carries an interest rate of LIBOR+425, and was swapped for a fixed rate. LTV is 58%. The loan is interest-only, and matures in three years. Proceeds were used to pay off a bridge loan on the property.
“Bridger created BankXchange Direct as a new source of liquidity for commercial real estate owners in the absence of a public capital market,” said Robert Schonefeld, Bridger CEO. “Without the CMBS market to efficiently deliver new debt capital, what remains is an extremely inefficient, fragmented financing market. Our forming BankXchange Direct brings together hundreds of Bridger’s bank clients to finance new mortgage loan requests and is intended to boost sector liquidity and return a level of efficiency to sourcing capital,” Schonefeld added. Bridger’s 10-year history in having brought capital markets execution capabilities to banks nationwide positions the company to create the BankXchange Direct portal by assembling credible sources of financing. Borrowers can take advantage of this network to expediently find the right funding sources for their loan requests.
This loan request had many challenges to overcome, according to Bridger Executive Vice President Peter Grabell. Underwriting challenges included incomplete lease-up, a local tenant roster with restaurant concentration, and second-story retail space. In addition, the borrower invested more equity in the property to enhance its credit profile. “This was a difficult deal, and the funding bank really persevered in working through the issues to get the loan closed. In addition to a well-underwritten loan added to its balance sheet, the bank initiated a new customer relationship with a very strong borrower that should benefit both parties in the future,” Grabell said.
Bridger Holdings LLC provides strategic real estate portfolio advisory services and lending programs to financial institutions that enhance their financial performance and optimize risk/return profiles. Its BankXchange division handles institutional loan and REO sales. Bridger Commercial Funding originates secondary market loans for banks’ customers. Its Bridger Asset Management division augments banks’ special assets groups in managing impaired assets and in maximizing loan workout recoveries, and provides asset management services to property owners.
Source: Bridger Commercial Funding