LOS ANGELES—Lone Oak Fund ends its year with $378 million in bridge loans, an increase of 8.67% over the previous year. In total, the private lending fund, which specializes in short-term loans with no prepayment penalties, completed 844 bridge loans in 2013.
According to Alexa Mizrahi, a loan officer with the fund, the growth is an indication of increased confidence in the market. “Investors are aggressively acquiring and repositioning properties,” says Mizrahi. “We are experiencing a major upturn in business because our proven ability to close quickly enables borrowers to take advantage of these opportunities.” The fund typically closes loans in a week or less.
The fund anticipates even greater growth in the coming year, forecasting a loan volume of $400 million. Non-owner occupied multifamily properties made up the bulk of the loans funded in 2013, but Lone Oak expects more loans to come from retail and industrial properties in 2014. In addition to increased confidence in the market, Lone Oak also attributes the high volume to its cooperation with brokers and second trust deed lenders.
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