SENIOR DEBT BRIDGE
Aileron’s bridge loan program is designed to help existing borrowers or investors acquire or refinance commercial real estate assets at a discount to the collateral’s fair market value. In a period of tightened liquidity, Aileron’s bridge loan program helps borrowers take advantage of the discounts being offered, allowing them to right-size their balance sheets or capitalize on an opportunistic acquisition. Conversely, when the economy/market is in expansion mode, Aileron’s bridge program allows investors to close on opportunistic acquisition targets quickly, or close on properties that are in need of renovations and/or lease up prior to qualifying for conventional financing. While all transactions are evaluated and priced on a deal-by-deal basis, the following is a general outline of the terms typically offered:
- Loan Amount:
- $1,000,000 – $10,000,000 (larger on a case-by-case basis)
- Term:
- Up to 36 months
- Property Types:
- Office, Industrial, Retail, Mixed-use, Multi-family, ALF, Hotel
- Repayment:
- Interest only with balloon payment at maturity
- Lending Territory:
- Nationwide
- Loan to Value:
- Up to 75% of appraised value
- Prepayment Penalty:
- None
- Rate:
- 8-12%
- Fees:
- 2-5% origination fee
- Collateral:
- First mortgage/deed of trust
Subordinate Debt and Mezzanine Loans
Aileron, on a case-by-case basis, also provides junior debt and/or mezzanine financing for value-add projects. In these cases, Aileron will provide leverage up to 90% of the total project cost; provided, however, that the remaining 10% equity comes directly from the developer/sponsor, and the senior debt financing terms are acceptable to Aileron. As these deals each have their own unique characteristics, pricing is determined on a case-by-case basis, and the term is limited to 24 months.