Mezzanine Financing

These loans are designed to help bridge the ‘gap' between total project funding requirements and the amounts available from senior lenders. Triad Capital works with borrowers that have already secured, in the process of obtaining or need help securing a loan from a senior lender for an acquisition, development and construction loan. Mezzanine loans assist in completing the capitalization so that it becomes a three-tiered structure: senior lender funds in a first lien position, mezzanine loan in the second tier, and equity in the third position. These funds provide adequate capital to complete the proposed project.

Typical Terms:

1. $1,000,000 to $10,000,000 – others on a case-by-case basis
2. Borrower is normally required to have 20% of the gap amount in cash or “hard” equity.
3. Closing Points – 2% to 5%
4. Term is normally 1 to 5 years
5. Rates – 10% to 24% depending on project. Interest only payments and deferred payments will be considered.
6. Fees & Expenses – Borrower pays all due diligence, closing and legal costs.

Hard Money Loans

All types of difficult to finance commercial property are considered. These loans are normally for the borrower with an unusual situation or require a quick closing.

Typical Terms:

1. $500,000 & up
2. Loan-to-Value up to 75% but normally below 65%
3. Points – 3% to 8% of loan amount
4. Rates – 10% and higher
5. Term – 1 to 3 years
6. Fees & Expenses – Borrower pays all due diligence, closing and legal costs.

Bridge Capital

Bridge loans are perfect solutions to timely real estate acquisitions or opportunities because they allow a borrower to act quickly. A bridge loan is typically for a short period of time until permanent financing is put in place.

Typical Terms:

1. $500,000 & up
2. Loan-to-Value up to 90% but normally below 70%
3. Points – 3% to 5% of loan amount with a 1% to 2% exit fee (negotiable)
4. Rates – varies with project
5. Term – 1 to 3 years
6. Fees & Expenses – Borrower pays all due diligence, closing and legal costs.