Healthcare Bridge Loans
Advantages: Fast bridge loan that closes in 6 to 8 weeks so investors have funds for their project while waiting for their HUD loans to close.“One-Stop Shop” if you’re looking for FHA or Agency permanent debt but need short-term bridge financing
No exit fee if permanent financing originated via Eagle -Greystone
Savings on fees and closing expenses
Loan Purpose: for properties that are either stabilized or need minor to moderate renovation or other value-add strategyOur bridge loan program can be used to finance stabilized properties while we underwrites permanent financing or fund moderate rehab/re-tenanting where the borrower needs to completes a value add strategy before securing permanent financing through FHA, Fannie Mae and Freddie Mac.
- Eligible Properties:
- Loan Amount:
- $5 million to $35 million+
- Loan Terms:
- up to 36 months including extensions
- Floating rate interest (spread 1.50% over LIBOR floor 500 bps for assisted living/independent living and 625 bps for skilled nursing facilities depending on quality and risk)
- Interest only (some amortization may be required after first two years)
- Loan Commitment Fees:
- Loan to Value:
- Up to 80%
- Equity Requirements:
- 15.0% to 20.0% cash equity in the property
- Debt Coverage Ratio:
- Minimum 1.10x at closing, Interest reserve established if less than 1.25x. During the bridge loan term, a minimum 1.40x must be achieved. Particular attention will be paid to the anticipated DCR on the take-out loan. In general (and particularly for rehab or repositioning loans), underwriting must demonstrate loan can be refinanced upon stabilization.
- Prepayment/Exit Fees:
- possible prepayment after one year subject to exit fee (waived if Eagle-Greystone provide permanent financing).
- Application Fees/Deposits:
- $15,000 per property non-refundable processing fee (depends on loan size and complexity) plus approximately $20,000 per property escrow deposit to cover cost of appraisal, structural/engineering, environmental reports, travel and due diligence.
- Taxes, insurance and replacement reserves
- Third Party Reports:
- MAI Appraisal (expanded or separate market study may be required for properties with value-add); Environment Phase I and Engineering/Structural Report prepared by approved professionals
- Non-recourse with standard carve-outs for environmental, bankruptcy, fraud and misapplication of funds, etc.; Partial recourse and/or operating deficit and completion guaranty may be required for properties undergoing more significant renovation.