Octagon Finance

The Historic Tax Credit Bridge Loan Experts.

Lending

From HTC Approval to Action: Lending Strategies for Rehabilitation

Developers utilizing historic tax credits gain a distinct advantage with Octagon Finance. Our unique background as both a lender and a former developer provides unparalleled flexibility and creative solutions, built on a wealth of direct experience. To advance projects to the construction phase, Octagon can advance funding at National Park Service Part II – Description of Treatment Approval. Each loan is tailored based on specific project conditions and borrower requirements. Octagon can also extend loans guaranteed by equity from other federal, state, and local tax credit programs. We originate, structure, underwrite, monitor, and service all loans. Our underwriting team’s unique capabilities and background provide value-added guidance for an efficient advancement to closing.

We offer two primary funding solutions

Unitranche

Streamlined Construction Financing for Multifamily with HTC Integration

  • Construction and tax credit bridge financing combined
  • Secured by the first lien on the real estate, the pledge of the developers’ membership interests and 100% of the future historical tax credit payments
  • Borrow up to 75% of the total development cost (underwriting the HTC repayment source)
  • Approximately 30% of the loan is repaid at construction completion by the HTC payments
  • Lending on multifamily only.

Tax Credit Bridge Loans

Monetizing HTC Equity to Launch Project Start

  • Limited term HTC bridge
  • Secured by the pledge of the developers’ membership interests and 100% of the future historical tax credit payments
  • Borrow up to 90% of the future historical tax credit payments
  • 100% of the loan is repaid at construction completion by HTC payments
  • Lending on multifamily, hospitality, office, mixed use, and retail.