MHC IV Bridge Fund
MHC IV Bridge Fund
Investment in an LLC that makes a single bridge loan with an initial 12-month term
Interest
Minimum Interest, Funded at Closing
The loan bears interest at 10% per annum, with a minimum of 12 months of interest due even if the loan is repaid early. The loan also provides for a 1% origination fee payable by the Borrower to the Fund. A full twelve months of interest is funded at closing.
LTV as DST IV Equity is Raised
Principal
Expected Sources of Principal Repayment
84¢ of each dollar of equity raised in DST IV and DST V must be applied to repayment of the bridge loan until $4.41M of principal has been repaid, excluding the first $9.4M1 of equity raised in DST V. Thereafter, 72¢ of each dollar of equity raised must be applied until the bridge loan is repaid in full.
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Borrower LTV2 is capped at 79.6%
The initial 84% repayment requirement is intended to maintain Borrower LTV at or below 79.6% as DST IV equity is raised.
1) The first $9.4M of DST V raise pays another obligation. After the obligation is paid, up to $10.6M may be applied to the repayment of the loan. For purposes of the foregoing thresholds, only proceeds from sales occurring after the Bridge Loan is funded will be included. 2) LTV means the ratio of (i) the outstanding principal amount of the bridge loan, together with other indebtedness of the Borrower or Depositor that is senior to or pari passu with the bridge loan and indebtedness indirectly secured by the DST IV real estate, to (ii) the appraised value of the DST IV real estate.
Borrower Sources & Uses
3) The Borrower will contribute this amount to the Depositor, which will contribute the funds to DST IV. DST IV will use these funds, together with the JPM loan and seller holdback note, to acquire the DST IV real estate.
MHC Capital
MHC Capital has executed across 4,000+ sites and $200M+ in assets and brings a vertically integrated platform spanning acquisitions, property management, construction, and operations, enabling consistency and cost efficiency. The platform is supported by specialized, dedicated in-house leadership for environmental compliance, portfolio-wide renovations, and development to improve accountability, speed, and cost control at operational standards.
Terms
Membership interests in MHC IV Bridge Fund, LLC
$25,000,000
Accredited investors only
One year from closing, subject to two six-month extension options
12 months of interest due, including upon early repayment
10.0% per annum, paid monthly4
1.0%, payable to investors4
$2.51M; 12 months funded at closing
MHC DST IV units; $90M appraised as of January 9, 2026
84% of equity raised in DST IV until $4.41M of principal has been repaid; 72% thereafter
84% of equity raised in DST V until $4.41M of principal has been repaid; 72% thereafter, up to $10.6M5
Two six-month extensions
13.0% per annum, paid monthly
1.0% of the then-outstanding Loan balance upon commencement of each six-month Extension Period; 50% payable to investors and 50% payable as selling commission
At the commencement of an extension period, an additional six months of interest at the 13% extension rate is reserved based on the then-outstanding loan balance
K-1
Polsinelli
4) Interest begins to accrue only upon closing of the loan to the Borrower. 5) The first $9.4M of DST V raise pays another obligation. After the obligation is paid, up to $10.6M may be applied to repayment of the loan.
Important Information
This material is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any security. Any offer is made only through the offering documents for MHC IV Bridge Fund, LLC (the “Fundˮ), which contain information about the offering, including its risks, and which should be read in full before investing. Interests in the Fund are available to accredited investors only, as defined under Rule 501 of Regulation D.
An investment in the Fund is a speculative private placement involving a high degree of risk and is suitable only for investors who can bear the economic risk of the investment, including the possible loss of their entire investment. The interests have not been registered under the Securities Act of 1933 or applicable state securities laws, are subject to restrictions on transfer, are illiquid, will have no secondary market, and carry no redemption right. Investors should be prepared to hold their interests for an indefinite period. The Fundʼs loan is indirectly secured by unsold DST IV interests held by the Borrower. DST IV’s underlying real estate is subject to a senior loan. Repayment of the Fundʼs loan depends on the Borrower’s performance and on the size and pace of equity raised in separate offerings of affiliated DST IV and DST V. Target raise amounts are targets rather than commitments and may not be achieved. Investors acquire membership interests in the Fund, which makes the loan to the Borrower. Investor distributions are funded from loan payments and interest received by the Fund from the Borrower. Offering and syndication expenses are borne by the Borrower. Distributions are not guaranteed. The loan may be extended beyond its initial one-year term, which would lengthen the period before principal is repaid. Investors should not assume that the loan will be repaid at the end of its initial term. Early repayment is not assured and depends, among other things, on the size and pace of equity raised in affiliated offerings. Statements regarding repayment, collateral coverage and loan-to-value reflect assumptions described in the offering materials and, where applicable, are based on a third-party appraisal. Appraised value is an opinion of value as of the appraisal date and is not a guarantee of current value, realizable value or sale price. Actual collateral values and loan-to-value ratios may vary. The Fund’s transactions involve affiliates of the Sponsor. S2K Financial LLC serves as dealer manager for this offering and receives compensation in that capacity. The Fund’s loan is indirectly secured by indirect interests in affiliated DST IV, and both the primary and secondary sources of repayment are equity raised in affiliated offerings. These relationships create conflicts of interest, which are described in the offering documents. Past performance does not guarantee future results. Securities offered through S2K Financial LLC, Member FINRA/SIPC.SECURITIES OFFERED THROUGH S2K FINANCIAL LLC, MEMBER FINRA/SIPC, THE DEALER MANAGER FOR MHC AFFORDABLE HOUSING DST V.