Retail and shopping center bridge loans in Massachusetts

What Massachusetts means for a bridge lender

Massachusetts is a power-of-sale state, but lenders usually first file a Servicemembers Civil Relief Act action in the Land Court before the sale. Expect local rules on rentals in some cities.

A power-of-sale process outside court usually lets a lender recover the property faster than a court case. Asset-based lenders who rely on the collateral rather than the borrower’s credit are often most comfortable lending where the remedy is quick and predictable.

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.