Time-Sensitive Bridge Acquisition
14-day close on a bank-owned multifamily at 15% below market.
Deal Overview
| Property | 18-unit apartment building |
| Location | Northeast Washington, DC |
| Strategy | Opportunistic acquisition |
| Purchase Price | $3,100,000 |
| Timeline | 14-day close |
The Situation
A DC-area investor received an off-market opportunity to acquire an 18-unit apartment building from a regional bank's REO portfolio. The property—located in a rapidly improving neighborhood near a new Metro station—had been foreclosed after the previous owner defaulted.
The bank was motivated to clear the asset from their books before quarter-end and offered the property at $3.1M—approximately 15% below comparable sales in the submarket. But there was a catch.
The challenge: The bank required a 14-day close with no financing contingency. Conventional lenders quoted 45-60 day timelines. The investor needed to close as if paying cash—but didn't have $3.1M liquid.
The Challenges
14-day closing requirement
Bank demanded fast execution with hard deposit
No financing contingency
Investor bore full closing risk
Property condition
Building needed $200K+ in deferred maintenance, disqualifying agency/CMBS
Proof of funds
Bank required evidence of ability to close before accepting offer
Our Approach
Brookmont executed an accelerated bridge loan process:
Lender Pre-Selection
We immediately identified three bridge lenders with demonstrated ability to close in under 14 days. All three provided proof-of-funds letters within 24 hours.
Parallel Processing
We ran appraisal, title, and environmental reports simultaneously rather than sequentially—compressing the typical timeline.
Expedited Underwriting
We provided complete documentation upfront—sponsor financials, property photos, rent roll, and rehab budget—enabling same-week underwriting approval.
Day-of-Closing Coordination
We coordinated signing, funding, and recording to ensure the transaction closed by the bank's deadline.
The Financing Structure
| Purchase Price | $3,100,000 |
| Closing Costs | $85,000 |
| Renovation Holdback | $200,000 |
| Interest Reserve | $115,000 |
| Total | $3,500,000 |
| Bridge Loan | $2,480,000 | 80% LTV |
| Sponsor Equity | $1,020,000 | 20% |
Bridge Loan Terms
The Execution Timeline
| Day | Action |
|---|---|
| Day 1 | Received opportunity; engaged Brookmont |
| Day 2 | Identified lenders; obtained proof-of-funds letters |
| Day 3 | Submitted offer with $150K hard deposit |
| Day 3 | Offer accepted; signed PSA |
| Day 4 | Ordered appraisal (rush), title, environmental |
| Day 5 | Submitted full loan package to lender |
| Day 7 | Received term sheet; signed LOI |
| Day 8 | Appraisal completed |
| Day 10 | Title cleared; loan documents prepared |
| Day 12 | Final underwriting approval |
| Day 13 | Loan documents signed |
| Day 14 | Funded and recorded; keys received |
The Outcome
At Acquisition
Post-Stabilization (12 months later)
The investor acquired the property at a significant discount, completed light renovations, stabilized operations, and refinanced into agency debt—returning nearly all initial equity while retaining a cash-flowing asset worth $1M+ more than the purchase price.
Key Takeaways
1. Speed is a competitive advantage
The ability to close in 14 days won a deal at 15% below market. The premium paid for bridge financing was far outweighed by the acquisition discount.
2. Bridge loans enable 'cash-like' execution
With the right lender relationships, investors can compete with all-cash buyers while using leverage.
3. Preparation accelerates execution
Having documentation ready and relationships established before the opportunity arose made the timeline possible.
4. Short-term cost, long-term value
The 10.5% bridge rate was expensive—but only for 12 months. The refinance into 5.9% agency debt delivered the long-term economics.
This case study represents a representative transaction. Specific details have been modified to protect client confidentiality.