Fast Office Building Bridge and Hard Money Loans

Office financing when the property is in transition

Office buildings in transition are hard to finance with conventional debt. A tenant moving out, a maturing loan, rising vacancy or a building that needs updates to compete can all push a property outside a bank's comfort zone. Our office bridge loans give owners and buyers time to lease up, renovate or reposition, then refinance or sell once the building's income is back on solid ground.

Office scenarios we finance

• Acquisitions of small and mid-size office buildings, including properties priced to reflect vacancy.
• Maturing-loan refinances when the current lender will not extend or the building no longer fits the original loan.
• Lease-up after a tenant leaves or while new space is marketed.
• Renovation and repositioning, such as common-area upgrades, suite reconfiguration or systems work.
• Construction completion on office and professional buildings.
• Special situations, including partnership buyouts and time-sensitive closings.

What we look at on an office deal

• Rent roll, tenants and lease expirations
• Current and expected occupancy
• Market rents and leasing demand
• Tenant improvement and leasing costs
• Building condition and systems
• The exit: refinance or sale

We underwrite office conservatively, because leasing takes time and money. A clear leasing plan, realistic rents and a budget for tenant improvements and commissions all strengthen a request.

Documentation stays limited, valuation is handled with a broker price opinion (BPO) or an internal valuation instead of a full appraisal, and there is no minimum credit score.

Loan structure

Loans typically run $100,000 to $2,000,000; smaller loans, and larger loans up to $5,000,000, are considered case by case. Rates are 10.99% to 12.99% (current typical range; subject to change, market conditions and underwriting), with 2 to 4 points, interest-only payments and flexible prepayment. Terms are 12 months, plus one optional 6-month extension, and closings typically take about 2 weeks or less, subject to underwriting. We lend up to 70% of value or cost in first position.

On purchases, borrowers typically bring 20% to 50% down. Final terms depend on the building, the tenancy and the plan.

Office is a case-by-case asset

We do not treat all office the same way. A well-located small building with stable professional tenants is a very different risk from a large, mostly empty one. We review every office deal on its own facts and tell you directly whether it fits. Buildings with ground-floor retail and apartments may fit our mixed-use program; see also commercial bridge loans.