Commercial Bridge Loans

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.