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Bridge Loans: Everything You Wanted To Know
As the name implies, bridge loans fulfill a vital need for active developers by giving life to a new project in the months before lenders feel confident enough to make available a construction loan, or a repositioning loan in the case of an existing project. But real estate bridge loans have other uses, both tactical and strategic, that make them indispensable in today's New York marketplace. For new development projects, bridge loans provide financing for property assemblages, site acquisition, and development expenses. Not only do such loans provide the developer with the funds to acquire a site, they also supply the breathing room that the developer needs to create the architectural designs and analyses for new construction projects. Just as important, bridge loans offer an opportunity to refine the developer's property repositioning or acquisition plan in the case of an existing project. During the development--or repositioning--planning stage, the developer's financial advisor has the time to arrange senior construction and mezzanine loan financing. For example, in recent months our firm has arranged highly competitive financing for projects under the 80/20 Bond Financing Program, and other projects under the recent Liberty Bond Program for downtown Manhattan. Still others have been condominium or office projects in which the fiercely competitive New York marketplace requires developers to move extremely rapidly to acquire control of desirable locations. Bridge loans have other strategic uses for developers. By enabling construction to commence before a formal construction loan is in place, a developer may time construction to avoid a heavy winter schedule with the attendant extra costs, or plan the completion of construction to coincide with the primary rental and sales months beginning in the spring and continuing into the summer season. A typical bridge loan has a term of 12 months or less, with spreads ranging upwards from 225 over 30-day LIBOR depending upon the lender's view of the location, viability of the project, and reputation and financial strength of the developer. Commitment fees of 1% are common, although lower fees can sometimes be negotiated. In some instances, commitment fees on bridge loans can be credited against fees on subsequent loans from the same lender. Guarantees required for such loans are highly negotiable. Our firm, The Singer & Bassuk Organization, has recently arranged over $250 million in bridge loans for seven separate transactions. In each instance, these loans have enabled developers such as The Moinian Group; Nathan Berman; a joint venture consisting of Cornerstone Real Estate Advisers, a wholly owned subsidiary of Massachusetts Mutual Life Insurance Company and Adellco LLC; and a joint venture comprised of Jeffrey Levine's Douglaston Development and Continental Properties owned by the Fisch family, to acquire site control and arrange for the orderly start of construction. I expect bridge loans to play an increasing role in New York financing and see a trend where lenders providing the ultimate financing for a project's development to provide bridge loans in order to cement the business and the relationship at an early stage in an increasingly competitive market. Marc Sylvester is based in Edison, NJ. He holds expertise in the banking and finance sector and is a consultant to leading business houses. http://www.imdollar.com/bridge-loans/
Latest News:Site: Yahoo! News Search Results for news News 8 Red Cross blood drive in Orange News 8 and the Red Cross are teaming up again today for a 'Remembering 9/11 Blood Drive'. News Near You for Sept. 10 NEWS NEAR YOU HanoverThe annual winterization program in Hanover County is accepting applications from low-income, elderly or disabled homeowners and volunteers who want to help them. News by location Get local and national news updates via E-mail. Duke University School of Nursing will offer several graduate courses in Fayetteville in 2011. Participants will meet once a month at the Southern Regional Area Health Education Center at 1601 Owen Drive. Each course will involve online learning. News media giants tap new media to stay alive Traditional news media outlets are staving off their much-reported impending demise by learning to use the very social media tools that are supposedly clobbering them to death. News 8 Follows First-Year Teacher Throughout the school year, News 8 will follow Darryl Wende during his first year of teaching in a series of reports called "Making the Grade." News by location Get local and national news updates via E-mail. A small fire that someone set on a street in west Fayetteville may have been a ploy to get inside homes in the neighborhood, police said. News by location Get local and national news updates via E-mail. An investigator with the Consumer Product Safety Commission was at Fort Bragg on Thursday conducting tests inside a military home where three families were staying at different times before their babies died mysteriously. News Animation Goes Political: Knocks Pres. Obama Speech In New Video The Taiwanese NMA News animation videos are coming out with increasing regularity , and are getting more timely and news-worthy . In the past, they've been fairly fun in their bipartisan ribbing toward both political parties - but their latest Pres. Barack Obama video takes some sharp jabs at the Commander-in-Chief. News by location Get local and national news updates via E-mail. You had to feel good about how the rest of the state of North Carolina felt about Fayetteville and Cumberland County football this week as reflected in the first Associated Press high school polls. News by location Get local and national news updates via E-mail. Two men are accused of robbing a pizza delivery driver at gunpoint Wednesday night, off Rosehill Road. Site: news - Google News Adobe, Google on Apple's App Store Changes: 'great News' - PC World
MORE RESOURCES: Site: Yahoo! News Search Results for loans Indian bank loans up 19.4% on year as of Aug 27 Indian bank loans rose 19.4 percent on year as of Aug. 27, the central bank's weekly statistical supplement (WSS) showed on Friday. Perkins Loans FAQs Perkins loans are very low cost, but scarce Liverpool loans shifted by RBS into 'bad debts' division RBS shifted loans of Liverpool owners Tom Hicks and George Gillett to "bad debts" division in March. Rediscounting loans sum up to P45.3 billion AVAILMENTS of rediscounting loans fell by over half in the eight months to August compared to a year earlier after the central bank slashed its budget for the facility and jacked up the cost of borrowing. Student Loans, Burger King: Hot Trends 'Student loans,' Burger King, Piers Morgan, 'Google search event,' ESTA and NCSECU are the trending topics on Google and Yahoo. Bank loans jumped 11.7% in July; robust economic growth seen Bank loans rose at their fastest pace in 13 months in July, led by higher lending for manufacturing and other production activities, signaling a continuation of the robust economic growth registered in the first half of the year. Loans for self-employment and housing for North East A loan scheme for self employment and housing will be introduced for the benefit of the poor families in the North and East, shortly. With a low annual interest rate of 4%, loans upto Rs.250,000 will be granted through the District Secretariats by the Bank of Ceylon. Eastday-Loans for M&As climb on call to lend Loans for mergers and acquisitions in Shanghai rose to 10 billion yuan (US$1.5 billion) at the end of June because banks were encouraged to lend to help facilitate companies to integrate in order to boost economic upgrading. Sanofi Said to Get $10 Billion Loans for Genzyme Bid Sanofi-Aventis SA, France?s largest drugmaker, got about $10 billion of underwritten loans to back its bid for U.S. biotechnology company Genzyme Corp., two people familiar with the situation said. College Loans 101: New Rules for Borrowers (Smart Consumer) Here are some tips for navigating the latest changes to student loans. Site: loans - Google News Student loan debt exceeds credit card debt in USA - USA Today
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