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Hotel Bridge Financing
CICG offers short term mortgages up to $10,000,000 or 70% percent stabilized value for:
Discounted Purchase Option (DPO)
These loans can closed in as little as two weeks, allowing a buyer to quickly acquire, renovate and stabilize the property until permanent financing can be sourced. Whether buying properties or refinancing current debt, a hotel owner can be confident in CICG's ability to move efficiently enabling them to close quickly on the transaction and have the capital necessary to complete the renovation or brand conversion successfully.
Transaction size: Up to $10,000,000
Use of Proceeds: Acquisition, refinance, or discounted purchase option paired with a recently completed or planned renovation. Allows owners to acquire, renovate and stabilize the property until which time permanent financing can be sourced.
Interest Rate: Blended rate typically around 8% based on credit review and scope of project.
Typical Terms: 36 months (18 months interest-only with 18 months P&I based on a 10-25 year amortization).
Recourse: Personal and/or corporate guarantees as applicable
Debt Service Coverage Ratio (DSCR) Requirements: Minimum 1.25x at stabilization (typically 2-3 years).
Leverage: Stabilized Loan to Value not to exceed 70%
If you have a project that meets the above guidelines and you are seeking a loan with competitive rates and terms, please contact our office to discuss.