About Edgewood Capital
Edgewood Capital Advisors is a direct portfolio private money lender focusing on providing short-term, 1st trust deed loans secured by investment residential real estate, commercial real estate and land. Although Edgewood will lend nationwide and even in the Caribbean, the firm is headquartered in Connecticut where a large percentage of its funding has occurred. Edgewood lends to business owners, real estate investors, and developers only and does not make primary residence loans. Edgewood was founded in 2002 with the mission of providing flexible debt and equity for real estate entrepreneurs and opportunistic investments for accredited investors, and other institutional investors. Since its inception, Edgewood has funded over $690 million in real estate debt and equity transactions in the geographic locations where it lends.
Edgewood recently funded a $4.8 million bridge loan secured by a 62-key hotel located in Narragansett, RI.
Edgewood funds short-term bridge loans from $2 million to $40 million to business owners, developers, and property investors looking to purchase, refinance, renovate, or cash-out of non-owner occupied residential property, commercial property and land. Although Edgewood lends nationwide, the bulk of the firm’s bridge lending has occurred in Connecticut and New York. Edgewood has differentiated itself through a number of unique program attributes outlined below.
Below are a sampling of reasons why a borrower would take out a loan from Edgewood:
- The borrower needs to close quickly (most loans close in 10 to 15 business days)
- The borrower has impaired credit or needs to quickly take advantage of an opportunistic scenario
- The borrower needs an asset based loan and cannot verify income
- The collateral or loan structure is complex and requires a unique financing solution
- The borrower needs a competitively priced bridge loan on a special-use property type
Bridge Loan Program Highlights / Guidelines
A bridge loan is a short-term loan that usually assists in bridging a borrower from a less favorable situation to a more favorable situation. For example, a borrower may take out a bridge loan to pull cash-out of his property to pay off lingering debt and improve a low credit score, so he can refinance into a permanent loan. Real estate collateral is essential to Edgewood’s program and borrowers without hard commercial real estate or investment residential real estate collateral are not eligible for financing.
Loan sizes from $2 million to $40 million
- Loans secured by most property types including multifamily, office, retail, mixed-use, hospitality, special-use, luxury residential, and land
- No set minimum credit score requirement
- Loan-to-value (LTV) generally up to 80%, higher leverage may be considered on a deal-specific basis
- 1 to 3 year loan terms with extensions available
- Interest rates start at Libor plus 300 basis points
- 1st lien position and/or assignment of the 1st mortgage loan plus other collateral loan documents
- 1.00% to 3.00% loan origination fee
- Partial or non-recourse financing available
- Closings can occur in 10 to 15 business days
The Loan Process
LendVer did not shadow the application or loan process for Edgewood but its website offers basic information about how to get started. Applicants are encouraged to fill out a short online application form or to contact Edgewood directly to start an application. Edgewood also lists its staff’s names and contact information on its website.
Because of Edgewood’s familiarity with the markets where it lends, it is often able to save time for borrowers by processing, underwriting and approving all loans in-house. According to Edgewood’s website:
Edgewood Capital’s mission is to conduct all business with the highest level of professionalism, structure high quality solutions for real estate entrepreneurs, and provide our accredited investors access to real estate investments that will generate appropriate risk adjusted returns.
- Edgewood will consider almost all commercial or business use property and has financed land, hotels, RV parks, marinas, grocery stores and other special-use property.
- Edgewood can fund from $2 million to $40 million in 10 to 15 business days.
- Edgewood understands complex capital structures and when needed can provide mezzanine financing and preferred equity investments.
- High leverage up to 80% or more is available through Edgewood at competitive short-term interest rates.
- Edgewood is a collateral based lender, offers partial or non-recourse loans and does not place emphasis on personal credit scores or income.
- Edgewood is selective, although it has funded over $690 million, the firm’s loans are spread out over only 120 transactions.
- Most of Edgewood’s lending has occurred in Connecticut or New York so borrowers seeking financing in other states may not receive as competitive terms.
Why Edgewood Capital is the Best
Edgewood has operated as a premier Connecticut bridge lender since 2002 and has funded over $690 million. Edgewood’s experience in the markets where it lends enables it to close loans in 10 to 15 business days; and all processing, underwriting and loan servicing is done in-house. Edgewood offers loan sizes from $2 million to $40 million, providing capital to borrowers with a wide range of financing needs. Edgewood is experienced in providing loans secured by special-use property that other lenders shy away from such as land, gas stations, marinas and hotels. Edgewood offers high leverage up to 80% or more, and competitive interest rates starting at only Libor plus 300 basis points.