Deal of the Week #29 – $9.5M Bridge Loan for Rental Townhouse Development – Cambridge, ON
Cameron Stephens Mortgage Capital (CSMC) is excited to announce a $9.5 million bridge loan for a newly constructed rental townhouse development in Cambridge, ON. This transaction marks a new client relationship and showcases our ability to deliver competitive, tailored financing solutions for commercial real estate developers. Notably, this bridge loan was structured to provide refinancing proceeds prior to full rental stabilization, offering the Borrower flexibility and financial liquidity.
The Challenge: Early Access to Equity and Refinancing Proceeds
Upon completing the construction of two high-quality rental buildings, the Borrower faced two key objectives:
- Onboarding quality tenants to stabilize the property.
- Securing financing to repay the construction loan and access equity.
The challenge? Many lenders require full rental stabilization before providing funds, forcing developers to rush tenant onboarding or leave equity tied up. In today’s capital-constrained environment, finding flexible, well-priced financing requires a partner with creativity and deep market understanding.
The Cameron Stephens Advantage: Strategic Support for Borrowers and Investors
Cameron Stephens delivered a solution tailored to the Borrower’s needs. Leveraging our expertise in multi-family assets and lease-up risk, we structured a bridge loan that enabled the Borrower to refinance their construction debt and repatriate a significant portion of equity.
Highlights of our approach included
- Underwriting the deal with debt-service coverage below 1.0x.
- Providing financing despite 30% of units still in lease-up.
- Offering terms that balanced flexibility for the Borrower with strong risk-adjusted returns for investors.
- Refinanced construction debt prior to stabilization, allowing time to secure high-quality tenants.
- Reduced carry costs through a competitive interest rate, easing financial pressure during the lease-up period.
This deal highlights Cameron Stephens’ ability to navigate complex lending scenarios and provide impactful solutions that drive growth in a challenging market.
Meet the Team Behind the Deal:
MacKenzie McGuire, Director of Mortgage Origination, Agent Level 1
Marko Sijakovic, CFA, VP of Syndication
Ajay Gunware, CFA, Senior Analyst, Underwriting and Portfolio Management
Ontario Brokerage License # 10769
