Industrial, warehouse and flex bridge loans in Illinois

What Illinois means for a bridge lender

Illinois is a judicial foreclosure state, and contested cases, especially in Cook County, can take a long time. Lenders that lend off the asset factor that into leverage, and Chicago has its own landlord-tenant ordinance that affects multifamily operations.

Foreclosure runs through the courts, which usually takes longer and costs more than a power-of-sale process. Lenders that size loans on the property, not the borrower, price that time in: some reduce leverage, some ask for larger interest reserves, and some only lend in judicial states on stronger assets.

Industrial specifics

Confirm zoning allows the intended industrial use, including outdoor storage or truck parking, and review any state environmental program records for the site before closing.

How industrial bridge loans are sized

Many asset-based bridge lenders lend around 60–75% of as-is value on industrial, with lower leverage for vacant single-tenant buildings, functionally obsolete space or properties with environmental concerns. When there is a plan to add docks, power or other improvements, some lenders fund it on a loan-to-cost basis from a holdback. Lenders may require a Phase II environmental before closing if the Phase I raises concerns, which can also reduce proceeds.

What lenders will ask for

• Rent roll with lease dates, options and expense recoveries
• All leases and amendments
• Tenant estoppel certificates
• Trailing 12-month operating statement
• Building specifications: clear height, docks, power, sprinklers, square footage
• Prior environmental reports, if any

Full list and timeline on the industrial, warehouse and flex bridge loans page.