Berkadia Commercial Mortgage Launches New Floating-Rate Bridge Loan Program

Berkadia Commercial Mortgage Launches New Floating-Rate Bridge Loan Program

March 22, 2011

Berkadia Commercial Mortgage LLC (Berkadia) has announced the launch of a new floating-rate commercial mortgage program. The program, available through Berkadia’s nationwide loan origination network, will offer bridge loans to eligible borrowers seeking to acquire or reposition properties using non-recourse commercial mortgage debt. Berkadia will service the loans and seek to provide permanent financing upon stabilization of the properties’ operations.
“We’re pleased to have the resources to provide these much-needed loans to our current customers and prospects. We believe we’re filling a void in the marketplace—these are exactly the types of loans that borrowers want and need right now,” said Hugh Frater, chief executive officer at Berkadia.
The product launch represents a substantial program, funded using proprietary Berkadia capital. The loans will finance and recapitalize commercial properties in all the core commercial property types, including office, industrial, retail and multifamily. The non-recourse bridge loans will be London Interbank Offered Rate (LIBOR)-based, floating-rate commercial mortgages. While the loan term is flexible, terms will typically be two to three years. Berkadia intends to focus on middle-market lending opportunities with typical loans ranging from $10-$20 million, but with the potential to do larger or smaller transactions.
“We are committed to strong sponsors seeking to finance high-quality properties,” said Frater. “We believe borrowers needing bridge loans are finding limited opportunities, particularly for smaller balance loans. In today’s environment investment banks are focusing on bigger deals and the regional banks are still working through their existing portfolios.”