Bridge Loans
Century’s flexibility as a lender is best demonstrated in the innovative bridge and structured loans we originate.
When there is a demonstrated source of repayment, Century typically bridges that funding to allow developments to move forward. Century is also able to leverage its own balance sheet to provide credit enhancements for financing by other lenders.
Bridge and Structured Financial Products include:
- Credit enhancements for subordinate bonds that were sold to private investors for additional permanent financing.
- Bridge loans of tax credit equity fundings, permitting a higher per credit price, injecting additional equity, and reducing public financing subsidy.
- Medium-term loans to fund required operating and debt service reserves for the initial term of new construction of mixed-income developments.
- Stand-by guarantees for projected rent increases during construction, allowing larger initial permanent loan commitments.
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Basic Terms |
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Purpose |
The loan will be used for structured financing for development of affordable rental and for-sale homes, including condominiums and townhomes. |
Loan Amount |
Loans may range between $500,000 to $15,000,000. |
Term |
12 to 48 months for loans, and up to 15 years for credit enhancements. |
Pricing |
Interest rates will be negotiated between the Borrower/Sponsor and Century. Market and overall risk of repayment will determine the loan interest rate, which may be fixed or variable based on an index rate (typically LIBOR). |
Repayment |
Bridge loans are repaid from permanent or other financing sources. Credit enhanced loans are repaid through amortization to the loan term. |
Security |
Bridge loans are secured through a recorded Deed of Trust, an Assignment of Partnership Interests, or other Sponsor assets. |
For more information or to apply for a loan please contact:
Aaron Wooler
310.642.2019
awooler@centuryhousing.org