For both recourse and non-recourse bridge loan programs, Dekel Capital’s Shlomi Ronen (here with wife Einat) is seeing lenders win big deals by stretching on loan proceeds and tightening pricing, as well as back-loading loan fees to minimize upfront capital requirements for sponsors. Shlomi tells us that, currently, recourse bridge loan programs are priced in the 3% to 4% range; non-recourse bridge loan programs are priced in the 4% to 5.5% range for middle market sized loans. He adds that leverage is typically 70% to 75% of project costs for bridge loans, and some debt funds stretching to 80% LTC. As well, Dekel is working with preferred equity funds that are layering leverage to 85% to 90% LTC, typically in prime locations. Dekel is currently raising bridge debt for a number of creative office conversions. Given the strong market demand by tenants for creative office in infill and transit-oriented locations, bridge lenders are not requiring pre-leasing prior to funding their loans on creative office redevelopment and new construction. For more information on our Bisnow sponsor, click here. `
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Dekel Capital is a Los Angeles-based Real Estate Merchant Bank with proven expertise in capital market advisory and private equity in commercial real estate.We serve an elite group of commercial real estate operators, investors, and developers with an exclusive, boutique approach that allows us to create tailored solutions that address your unique capital challenges. Our deep relationships within the capital markets give us an unparalleled advantage in providing our national clientele with best-in-class structured financing solutions and funding execution. Over the past 15 years, the team at Dekel Capital has financed a combined $2 billion of structured transactions for developers, operators, and investors.
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