In hospitality and entertainment venues, many owners are trying to work through issues with the lenders.
But if an owner possesses a trophy property with viable businesses that would be thriving if it weren't for COVID, they can find lifelines in the form of bridge loans, according to Eric S. Orenstein, a member of Rosenberg & Estis, P.C. and a leader of the firm's transactional department.
With these bridge loans, borrowers are paying a high rate for 15 months. These shorter-term, higher-interest loans are a good way for lenders to deploy capital on assets with solid underlying fundamentals. "This is real bridge financing, and we're now bringing people back to normalcy," Orenstein says.
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Leslie Shaver
Les Shaver has been covering commercial and residential real estate for almost 20 years. His work has appeared in Multifamily Executive, Builder, units, Arlington Magazine in addition to GlobeSt.com and Real Estate Forum.
