Corktown Hospitality Bridge
Solid sponsor, good asset, elevated exit risk
Experienced sponsor with three prior closings on the platform. Hospitality requires conservative underwriting; exit depends on conventional refi within 24 months.
Sponsor has limited hospitality operating history
Sponsor's prior three closings on the platform were all multifamily and mixed-use. This is their first dedicated hospitality bridge. Mitigant: sponsor has retained an experienced hotel operator (Marlowe Hospitality Group) under signed management agreement.
Exit relies on conventional refinance, not sale
Pro forma exit is refinance to permanent debt at month 22-24. Hotel stabilization assumes RevPAR ramp to $140 by month 18. If RevPAR underperforms, refi market may not support payoff. Mitigant: full personal recourse from sponsor; secondary exit via sale supported by $10.5M as-is appraisal.
12-month interest reserve held in escrow
Per OPM Exchange standard, hospitality bridge deals require 12 months of interest pre-funded into a controlled reserve. $780K held by title company; releases monthly to pay debt service. Reduces lender risk in early stabilization period.
Strong sponsor financial position
Verified PFS shows $4.2M liquidity and $14.8M net worth excluding subject property. Prior three deals on the platform all paid as agreed. Last deal repaid early in month 19 (24-month term).