Borrower Receives Loan Extension for Fast Food Chain's Commercial Property

The fast food industry has continued its booming growth through the decades and the appeal for high-quality meals on-the-go reigns supreme across multiple generations around the country. 

Looking to fund this ever-growing industry is always a sweet spot of ours here at Commercial Capital BIDCO. We're grateful to our borrower for a clean process! In October of 2023, our client closed on the extension of a loan for a commercial property located in Manhattan, Kansas at a requested loan amount of $1,040,000.00 with an LTV of 65%. The property itself is currently leased by a fast food chain and will continue this line of business in addition to implementing renovations thanks to the loan proceeds made possible with the loan extension. The renovations will enable the commercial building to receive its certificate of occupancy and the fast food chain can continue operations. 

Looking to franchise a restaurant or start a fast food business in your area - we work across the United States to provide funding opportunities when your primary lender is not able to. Let's talk through your goals and plans today! Reach out to us on our website: https://commercialcapitalbidco.com/apply/


Smooth Sailing in Florida With a Cash-Out Refinance

A long-time client to Commercial Capital BIDCO closed on a cash-out refinance of two commercial properties in Florida in August of 2023. One is located in Destin, Florida while the second is located at Steamboat Landing in Freeport, Florida. Loan proceeds from this deal will be used to pay taxes due on the sale of assets previously owned by the client. The requested loan amount for this deal was $765,000 with a LTV of 65%. This deal was closed and funded in just 30 days. We thank this client for their repeat business and look forward to many more "smooth sailing" deals in the future!

 


Cash Out Refinance in New Britain, Connecticut

The northeast is still a hot spot for commercial investments and real estate purchases for entrepreneurs as well as developers. As such with this deal, the borrower here was able to close on a cash-out refinance of a commercial property located in New Britain, Connecticut in September of 2023. The property is currently leased by a technical institute, however the loan proceeds from this cash-out refinance will be used to pay off the current note, provide funds to pay past due income taxes, provide funds for real estate acquisitions, and to provide funds for the property to build out a new parking area. The requested loan amount for this deal was $720,000 with a LTV of 65%. The property is 15,542 square feet and sits on 2 acres.


Upscale Wine Lounge Closes Cash Out Refinance in Pennsylvania

In September of 2023, our client closed on a cash-out refinance of an upscale wine lounge located in the beautiful borough of Rankin, Pennsylvania - just 10 miles south of Pittsburgh. The wine lounge provides a unique experience for special occasions, celebrations, date nights, friend gatherings, and more. The lounge also features multiple rooms and spaces to relax, gather, and unwind. Live music is featured throughout the week and a full dinner menu is available nightly. Our client has built an excellent path to success by incorporating unique concepts and an upscale feel for their customers.

Loan proceeds will be used to pay off a portion of their current debt as well as provide funds for upgrades and provide working capital. The requested loan amount for this deal was $2,650,000.00. The LTV was 59% and the size of the lounge is 14,000 square feet.  

 

 


Client Increases Existing CCB Loan for Build Out and Renovations

In August of 2022, our client closed on the increase to an existing Commercial Capital BIDCO loan that will allow them to complete the buildout of a cannabis cultivation facility. The collateral property is located in Iron Mountain, Michigan and the loan proceeds are being used to cover the finishing touches on the subject property’s renovation. 

Requested Amount: $1,650,000  //  Property Size at 8,850 sq. ft. on 0.83 acres  //  LTV at 51%


Refinance Closed for Partner Buyout in Ohio

In December of 2022, our client closed on the refinance of a current loan on their commercial property in Butler, Ohio. The loan proceeds are also being used to buyout the principle’s former business partner. Time was of the essence with this deal and we were happy to assist with a quick closing. 

Requested amount: $540,000  //  Property size is 51.013 acres  //  LTV at 48%

 


Indoor Grow Facility Secures Funding for Improvements in Oregon

Cannabis and grow facilities can run into speed bumps when looking for lenders who understand their specific needs as well as their state's laws. We were thrilled to help our client close on the refinance of a cannabis grow facility in December of 2022. The collateral property is located in Dallas, Oregon. The loan proceeds from this deal will be used to pay off the initial investors and allow for improvements to be made to the indoor grow facility. 

Requested amount: $1,550,000  // Property size is 15,000 sq. ft. on 122 acres  //  LTV at 63%


CLOSED: Current Debt Refinance

In July of 2022, our client closed on the refinance of current debt. The collateral properties for the deal are located in Elk Rapids, Michigan and Williamsburg, Michigan. The loan proceeds are being used to pay off the current debt on the properties and provide working capital to provide improvements on the Williamsburg property. The requested loan amount for this deal was $1,834,000.00. The property size is 4,686 square feet situated on 68 acres. The LTV was 56%. 


Deal Talk Podcast - Give Episode 2 A Listen!

Episode 2 of our Deal Talk podcast featuring Terry Luker is now available! "Getting a Better Deal the Second Time Around" is a pivotal deal from Terry Luker's first book, "Yes! How to Get the Funding You Need For Your Business," and is brought into even greater detail here on our podcast! Give it a listen below and be sure to Follow our podcast on Spotify and YouTube!

 

Click Here to Listen on Spotify!

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Commercial Capital BIDCO: A Phalanx Against Uncertain Times

Wow is an understatement for how we are feeling! Thank you to DealMaker Magazine for highlighting our very own COO, Jeff Luker, as part of this year's Hot List. Check out the full interview and article below as well as on DealMaker Magazine's website linked here.

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“A man’s character is known by the kind of company he keeps.” – Proverbs 13:20

Fresh out of college, Jeff Luker, now COO of Commercial Capital BIDCO, worked in car sales for about eight years, running sales teams and finance departments. During that time, he gained insights he’d used later in his career in the world of commercial loan brokerage and lending. Citing the similarities between selling a car and closing a loan agreement, Luker says the biggest difference was learning patience, as loans can take up to 90 days to close, whereas a car sale is same day. Otherwise, the transition to Alternative Capital Solutions, Commercial Capital BIDCO’s affiliate company that was founded prior to the bridge lending firm, was natural and paved the way for Commercial Capital BIDCO to thrive as one of the most important departments in the two firms, second only to the rapidly expanding underwriting department. Luker has great pride in the company’s culture, one he says is unique and essential to its brand. Having been in his role for more than seven years, Luker says his team uses great continuity to perform on all cylinders, giving clients a consistently well-rounded experience.

Specializing in short-term real estate-backed bridge loans, Commercial Capital BIDCO finances deals ranging from $250,000 to $2 million but can go as high as $6 million. With a team 10 members strong, Luker is proud of Commercial Capital BIDCO’s strong cohesion, which aligns with the company’s ethos of doing whatever it takes to get the borrower the best outcome — even if that means sending them to a permanent lender.

As COO, Luker’s role is primarily to work with brokers who send loan requests in for clients, vetting those requests through underwriting and then contacting and closing the deal with approved clients. The rest of the team fills in each other’s shoes. Since they have worked together for years, teammates are able to pick up the slack to get every viable deal out the door. And with an increased focus on credit quality, the company is adding more underwriters to its team and Luker says there is no end in sight for the company’s expansion.

“Even though we’re a short-term bridge lender with an average closing time of about 17 days, and even with as quickly as we work, we still do a full doc underwrite on every deal,” Luker says. “We’ve had a lot of banks in our area tell us that our underwriting is just as good if not better than theirs. Of course, one reason for that is because when a banker underwrites a loan, they’re slanting it to what their chief credit officer wants to see. We can’t do it that way. Since we can help with the permanent loan as well, we position our package so that we can quickly turn it to a permanent package. And if we’re going to do that, then it’s going to have to have a wide audience.”

Having a permanent package option has proved to be essential for Commercial Capital BIDCO because, as the past few years have shown the world, the unexpected can and will happen. When solutions for borrowers dry up due to market fluctuations, Luker and his team aim to be in a position to find a permanent solution to their lending needs. While the company doesn’t have a minimum credit score for its loans, it does stray away from risky or speculative proposals and focuses heavily on the front end so the client knows what they are signing up for.

“Brokers call us frequently asking for our loan parameters, our minimum credit score and our minimum debt service,” Luker says. “We don’t really have any of that because each project is different and unique. We prefer to look at things on a case-by-case basis. We want to see what makes sense. Sometimes you’re getting your cash flows up and your debt service is not good, but if we can build in an interest reserve that makes sense to give you time to build it up, then the project does make sense. We don’t have any sort of hard and fast rules on our loans, and that speaks to our flexibility. We want to do loans that make sense and loans that have a clear-cut takeout.

“I think a lot of brokers and borrowers, when they come to us, a lot of times are gun shy. You never really trust a lender until you have a loan funded with them, and I understand that. But I think that once we get through the process and we’ve funded the loan, a lot of borrowers and brokers see that we’re really fast and we’re really very easy to work with.”

Looking into the current and immediate future for the state of the U.S. economy, property values will decline as rates rise. Commercial Capital BIDCO’s activities are all real estate backed, so being careful with valuations is a top concern for the team. When starting a new loan process, the team may run into a prospective client with an appraisal that is six or eight months old. Based on the company’s loan policy, the team may still accept that appraisal, but will go further to investigate, making sure it is a good fit before asking for an updated appraisal. This has always been a checkpoint in the loan process at Commercial Capital BIDCO and will continue to be as the economy ebbs and flows.

With a possible recession in the coming years, Luker believes it will be pertinent for his team to continue being flexible as well as sharpening their already effective strategies in regards to building the best funding packages for their clients. Rising interest rates will actually be a boom for the short-term bridge loan lender and Commercial Capital BIDCO is ready to take on the challenge of funding deals for an influx of borrowers looking for a lending solution.

ABOUT THE AUTHOR: Ian Koplin is an editor of DealMaker.