Fast Commercial Bridge Loans from a Balance-Sheet Lender

What a commercial bridge loan is for

Permanent lenders, such as banks, agencies and life companies, want stable properties: steady occupancy, clean financials and a track record of operation. Many good deals do not look like that yet. A building may be half-leased, in need of renovation, recently bought out of distress, or owned by a seller who needs to close faster than a bank can. A bridge loan fills that gap. It is short-term, interest-only financing secured by the property, and it is repaid when the business plan is complete, usually through a refinance or a sale.

Common bridge loan scenarios

• Acquisition bridge. Buy now, especially when the seller wants a quick close or the property does not qualify for a bank loan in its current condition.
• Refinance bridge. Pay off a maturing loan, a partner or a lender that will not extend, and buy time to stabilize or sell.
• Cash-out refinance. Pull equity from a property you own to fund improvements or another investment.
• Value-add and rehab. Finance a property whose value depends on renovation, re-tenanting or better management.
• Lease-up. Carry a building through the period between vacancy and stabilized occupancy.
• Construction completion. Finish a project that stalled when the original financing ran out or the original lender stepped away.

How we structure bridge loans

Loans typically run $100,000 to $2,000,000; smaller loans, and larger loans up to $5,000,000, are considered case by case. Rates are 10.99% to 12.99% (current typical range; subject to change, market conditions and underwriting), with 2 to 4 points, interest-only payments and flexible prepayment. Terms are 12 months, plus one optional 6-month extension, and closings typically take about 2 weeks or less, subject to underwriting. We lend up to 70% of value or cost in first position.

Because we value a property with a broker price opinion or an internal valuation instead of a full appraisal, and keep documentation limited to what the deal needs, the review stays focused and moves quickly. There is no minimum credit score. The property, the leverage, the borrower's experience and, above all, the exit determine the final terms.

The exit is the whole point

A good bridge loan starts with the end in mind. Before we commit, we want to understand how the loan will be repaid and what has to happen first: leases signed, renovations finished, occupancy at a level a permanent lender will accept, or a buyer at a realistic price. The clearer and more conservative the exit, the easier the loan is to approve. With a 12-month term and one optional 6-month extension, timing matters, so build a schedule that leaves room for delays.

Property types and markets

We provide bridge financing for apartment buildings, mixed-use buildings, retail and restaurant properties, office buildings, light industrial buildings and self-storage facilities in DC, MD, VA, DE, PA, NJ and NC. Smaller deals are welcome; see our small balance commercial page.

Who uses our bridge loans

We work with experienced investors, owner-operators and the mortgage brokers who represent them. First-time investors are welcome too, especially when the property and the plan are strong. Brokers get a direct line to the lender and a straight answer on whether we can help their client.