Retail and shopping center bridge loans in Florida

What Florida means for a bridge lender

Florida is a judicial foreclosure state, so lenders plan for court timelines. Florida charges documentary stamp tax on notes and an intangible tax on recorded mortgages, which add to closing costs, and property insurance availability and cost, especially near the coast, is a major underwriting item.

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.

Retail specifics

Check local zoning for allowed uses, signage and parking requirements before planning a re-tenanting strategy, since some uses such as restaurants or medical may need additional approvals.

How retail bridge loans are sized

Many asset-based bridge lenders lend around 60–70% of as-is value on retail, and less for centers with a dark anchor, heavy near-term rollover or high vacancy. When the plan involves re-tenanting, some lenders size to loan-to-cost and fund tenant improvements and leasing commissions from a holdback. Single-tenant buildings are often sized off the tenant's credit and remaining lease term as much as the real estate.

What lenders will ask for

• Rent roll with lease start, expiration, options and recovery terms
• All leases and amendments, including co-tenancy and exclusive use clauses
• Tenant estoppel certificates
• Trailing 12-month operating statement and CAM reconciliations
• Tenant sales reports, where provided
• Leasing plan and TI/LC budget for vacant space

Full list and timeline on the retail and shopping center bridge loans page.