BridgeCore Expands With Second Trust Deed Product

BridgeCore Capital has expanded its loan offerings. The private mortgage lender has added second mortgage and mezzanine loan products to its offerings, and will provide financing for deals ranging in value from $1 million to $8 million. This new product allows the company to take full advantage of the capital stack and offer borrower more financing options with better leverage.

“We further expanded our capital solution by offering multiple tranches of the capital structure through our senior and, now, our second mortgage/mezzanine loans, raising the potential leverage available to the borrower from 65% LTV to 80% CLTV between the first and second mortgages,” Elliot Shirwo, principal and founder at BridgeCore Capital, tells GlobeSt.com. “In addition, I found that borrowers who were seeking a second mortgage or mezzanine loan between $1 million and $10 million in loan size were left without many choices.”

BridgeCore is focusing on this deal size to service a niche segment of the market. “Above $10 million, the institutional lenders dominate the market given their mandate to deploy larger capital tranches, and below $1 million the majority of private lenders flourish,” says Shirwo. “For private lenders, as the second or mezzanine loan size increases, the senior loan size proportionately increases, narrowing the number of private lenders who have the appetite to cover the senior position.”

In addition to expanding its loan offerings, BridgeCore is also expanding into new geographies. Now, the firm services California, but moving forwarded it will focus on Austin, Dallas, Charleston, Miami, Nashville, Denver, Portland, Columbus and Phoenix, as well as San Jose and Sacramento in California. “BridgeCore expanded beyond California as part of our firm’s growth trajectory, as we address increasing demand from borrowers for our pay-rate product, as well as from investors who seek deeper diversification in their real estate debt allocations,” says Shirwo.

The company isn’t just moving out of California, it is shifting its focus to secondary markets, where it sees the most opportunity. “Secondary markets complement the new, expanded primary markets, given growth rates in primary markets like San Francisco, where economic expansion flows over to secondary markets to support residential, retail, commercial and office needs,” says Shirwo. “Further, there is ample room to grow in secondary markets, affording more opportunity for private lenders to provide alternative capital solutions.”

Over the next 12 months, BridgeCore plans to expand slowly as it rolls out its new products. “My goals are to take a measured and incremental approach to expansion over the next 12 months, until there is more visibility and clarity in the economic and political climate, both domestically and internationally,” says Shirwo. “Private lending serves the continuing need for capital during times of economic disruption, increased volatility and fragmentation, when traditional primary lenders tend to step back and tighten their approaches to the market. As a private lender, BridgeCore Capital offers sustainability for borrowers in the performance of their loans, and for investors in preserving capital.”