Deal of the Week #30 – $15M Bridge Loan – Whitby/Brampton, ON
DEAL OF THE WEEK #30 – Cameron Stephens Mortgage Capital (CSMC) is thrilled to announce the successful completion of a $15,000,000 bridge loan for a portfolio of two income-producing properties in the Greater Toronto Area. This financing was completed for a significant property manager/owner, marking the first of two transactions with this new client relationship.
THE CHALLENGE: Operating in a High-Interest Rate Environment
The Borrower, who acquired the properties in the early 2000s, has been managing them efficiently, with both properties fully tenanted at market rates. As the previous loan reached maturity, the Borrower sought an alternative to avoid locking in a multi-year fixed rate during this period of high interest rates.
THE SOLUTION: Tailored, Flexible Financing
Leveraging CSMC’s creative underwriting and syndication capabilities, led by Daniel Leitch, CFA, VP & Head of Syndication, and Miraan Mukhtar, Analyst, Underwriting & Portfolio Management, we structured a custom solution to meet the Borrower’s needs:
- Reduced Floor Rate: Allowing the Borrower to benefit from future prime rate reductions.
- Early Refinance Option: Loan open after six months, enabling flexibility to refinance once rates stabilize.
- Equity Takeout: $1.7 million equity takeout to provide the Borrower with additional working capital.
THE CAMERON STEPHENS ADVANTAGE:
- Flexibility in Financing: In a challenging market, CSMC provided terms tailored to the Borrower’s needs, demonstrating our ability to deliver bespoke financing solutions, including reduced floor rates and early refinance options.
- Higher Leverage for Growth: Refinancing at >70% LTV, the loan provided ~$1.7M in equity takeout, enabling the Borrower to unlock value and deploy working capital across their portfolio.
- Strong Market Expertise: CSMC’s access to proprietary capital and relationships with institutional partners enabled us to craft customized loan structures, helping clients navigate complex market conditions
Meet the Team Behind the Deal:
- Ian Wilson, VP Mortgage Origination, Agent Level 2
- Daniel Leitch, CFA, VP, Head of Syndication, Agent Level 1
- Miraan Mukhtar, Analyst, Underwriting & Portfolio Management
Ontario Brokerage License # 10769
