BridgeCore Capital Provides $6.5 Million Refinance for Los Angeles Apartment Complex

BridgeCore Capital, Inc. has successfully closed a $6.5 million refinance deal for a 36-unit apartment building located on the border of Koreatown and MacArthur Park in Los Angeles. This transaction highlights the company's ability to provide tailored financial solutions in the competitive real estate market of Southern California.

The refinancing was necessitated by the borrower's need to pay off a matured loan and settle outstanding property taxes. In a strategic move to address the borrower's financial constraints, BridgeCore structured the loan with a six-month prepaid interest reserve. This provision is designed to cover the gap between the property's net operating income and BridgeCore's debt service, effectively safeguarding against potential payment defaults during the loan term.

Demonstrating flexibility in their approach, BridgeCore increased the loan proceeds by $100,000 from the original term sheet. This additional funding was secured by cross-collateralizing a subordinate lien position on a non-owner-occupied single-family home in Hesperia, California. This creative solution enabled the borrower to meet their cash requirements from the refinance.

The borrower's exit strategy involves either refinancing with a conventional loan or selling the property within the next 12 months. BridgeCore's timely intervention and efficient processing of the transaction were crucial in helping the borrower avoid foreclosure by the previous lender.

This deal underscores the importance of alternative lending options in the real estate market, particularly for borrowers facing time-sensitive financial challenges. BridgeCore's ability to coordinate with mortgage advisory teams and title companies to expedite the closing process demonstrates the value of experienced bridge lenders in facilitating complex real estate transactions.

The transaction also highlights the ongoing demand for multifamily properties in Los Angeles, a city known for its tight housing market. The refinancing of this 36-unit complex suggests continued investor interest in apartment buildings, despite broader economic uncertainties.

BridgeCore's involvement in this deal showcases the company's 'Middle Market Loan Program,' which offers an alternative to traditional financing methods. This program provides borrowers with flexible terms, including pre-pay options, interest-only payments, non-recourse financing, and fixed-rate options for loans ranging from $10 million to over $30 million, with terms of 2 to 5 years.

The successful closing of this refinance deal in Los Angeles exemplifies the critical role that bridge lenders play in the commercial real estate market. By offering flexible and timely financing solutions, companies like BridgeCore Capital are helping to maintain liquidity and facilitate transactions in a market where traditional lending options may be limited or time-consuming.

As the real estate market continues to navigate economic uncertainties, the availability of such alternative financing options becomes increasingly important for property owners and investors. This transaction serves as a case study in how creative financing solutions can address complex real estate challenges, potentially influencing future lending practices in the industry.