A developer approached BLC with his plans to convert a dormant college building into a 72 Unit Apartment Complex. The plans had merit, however, the developer lacked the capital to do the project.

Bedford Lending completed a comprehensive financial analysis and looked at all of the available options. We concluded the property could be retrofitted for $40.00/SF and that the value in the land and buildings could be credited as equity towards the project. We also advised the developer to form an identity of interest with a qualified builder who would be willing to substitute their profit for an ownership interest in the project.

Bedford Lending then processed and funded a 40 year construction to permanent mortgage under HUD’s Section 221d(4) program. This loan provided the developer with 97% financing, thanks to the equity credits we were able to recognize. The developer subsequently converted the property into condos.

Bedford Lending was engaged to: (i) complete due diligence (ii) develop an optimal funding solution (iii) evaluate construction costs and (iv) assist the client in securing a $475,000 Community Grant, which was needed to bridge the equity requirement. BLC worked closely with the Housing Agency and was instrumental in securing the community grant. In addition, we recommended using modular construction, which saved the client an estimated $300,000.

 

Results: Bedford Lending processed and funded a 40-year, non-recourse 90% construction to permanent mortgage. Between the grant and HUD financing the loan structure provided 100% financing and the borrower was only responsible for funding the working capital and initial operating deficit.

A successful nursing home operator, with two facilities, wanted to expand into the assisted living market. Our assessment…he didn’t fully understand many of the critical strategic business issues, niche market opportunities, development issues, and financial options. Bedford Lending researched the long-term care market for niche opportunities, modeled the creation of a new Alzheimer’s facility and prepared an analysis detailing all the financing options.

Results: Bedford assembled the development team and financed the loan with a 232 HUD loan. The loan was structured with a 40 year, fully amortizing non- recourse note.

Bedford Lending was engaged to secure maximum financing for the acquisition of an 80,000 SF strip mall in the Southwest. The property consisted of one anchor tenant and 12 smaller units. There were two prominent challenges: (i) the $10,000,000 purchase and sales agreement was expiring in 35 days and (ii) the borrower only had 10% down payment.

BLC worked diligently and structured the loan with an 80% first mortgage, 5% second mortgage and a 5% third loan secured by the partner’s ownership interest. The effective interest rate on all three loans was 6.44%.

The complex loan structure funded in 30 days and met the client’s goal of a long-term fixed rate interest rate, high leverage transaction.

Bedford Lending provided financing for a client to refinance three apartment buildings, aggregating 32 units. The $1,800,000 loan was structured as a blanket mortgage and the funds were used to payoff a $1,000,000 bank rehab loan and provided a $800,000 cash take-out. The property was only rented for three months at 79% occupancy and that many lenders denied the request because of the short rental history and low occupancy. The loan was closed in less than 30 days.

 

Bedford Lending Corp. provided 90% financing for a client to acquire an office building in New England. The client, which operates a CPA company, leased 25% of the space and had an option to acquire the building.

 

We were able to qualify the client by combining the cash flow from their practice,rental income of the building and their personal income.  Our $3,600,000 loan funded 90% of the acquisition price. The client noted that the banks were only able to provide 75% -80%  financing which left a major equity gap. Similarly, the loan did not qualify or SBA financing because the client did not occupy 51% of the space.