Commercial Real Estate Bridge Loans
You have the deal. You have the business plan. You have a closing deadline that a conventional lender cannot meet. A commercial real estate bridge loan is how sponsors with time-sensitive acquisitions, repositioning plays, and value-add transactions close when standard mortgage finance is too slow, too rigid, or simply unavailable for the asset in its current state.
Financely structures and places CRE bridge loans for sponsors across office, retail, industrial, multifamily, mixed-use, and hospitality assets globally. We assess your transaction, identify the right lender, and manage the process from first contact to close.
Bridge Lending at a Glance
What Is a Commercial Real Estate Bridge Loan
A commercial real estate bridge loan is a short-term debt facility used to finance a property transaction or repositioning plan during the period before longer-term permanent financing is available. Bridge loans are underwritten against the exit value of the asset and the credibility of the sponsor's business plan rather than the current income of the property. This distinction is what makes them useful where conventional mortgage lenders cannot help.
A conventional commercial mortgage lender underwrites against the current net operating income of the property. If the property is vacant, partially leased, being repositioned, or in a transitional state, the current NOI does not support the loan the sponsor needs. A bridge lender looks past the current income position and underwrites the stabilised value the property will achieve once the business plan is executed. The bridge loan funds the execution. The permanent loan refinances the completed asset.
Bridge loan versus construction loan: A bridge loan funds the acquisition or repositioning of an existing asset. A construction loan funds the development of a new asset from the ground up. Some transactions require both: a bridge loan to acquire the site and fund initial works, converting to a construction facility once planning is confirmed. Financely structures both and can advise on the sequencing.
When a Bridge Loan Is the Right Structure
Bridge finance is not a last resort. For a defined set of transaction types, it is the correct and most efficient financing structure. The following scenarios are where bridge lending consistently provides the best answer.
Time-Sensitive Acquisitions
The seller requires a short closing timeline that conventional lenders cannot meet. Auction purchases, distressed asset sales, and motivated seller situations regularly require closing in 20 to 45 days. Bridge lenders are structured to move at that speed. Conventional mortgage lenders are not.
Vacant or Under-Leased Assets
The property has insufficient current income to support a conventional mortgage at the required loan amount. The sponsor's plan is to lease up the asset to stabilisation and refinance on permanent debt. The bridge loan funds the acquisition and the carry period while the leasing strategy is executed.
Value-Add Repositioning
The asset requires capital expenditure, refurbishment, or a change of use before it reaches its target value. Conventional lenders will not advance against a property mid-repositioning. Bridge lenders advance against the projected exit value net of stabilisation costs, funding both the acquisition and the capex programme within a single facility.
Refinancing Before Maturity
An existing loan is maturing and the sponsor needs time to complete a repositioning, lease up a vacancy, or wait for market conditions to improve before refinancing onto permanent debt. A bridge loan buys the runway. It replaces the maturing loan and gives the sponsor 12 to 36 months to execute the plan that justifies the permanent debt terms.
Non-Standard or Complex Assets
The asset type, location, or structure falls outside the lending criteria of conventional mortgage providers: mixed-use assets with complex income streams, assets in secondary markets, short-leasehold interests, or properties with planning or title complexity that a conventional lender's credit committee will not approve within a normal timeline.
Portfolio Recapitalisation
A sponsor needs to release equity from a stabilised portfolio to fund new acquisitions without selling assets. A bridge facility secured against one or more portfolio properties provides the liquidity. The exit is either a refinance onto long-term debt or the sale of the asset once the required hold period has been satisfied.
Have a Deal That Needs Bridge Financing?
Submit your transaction details and receive a financing assessment within one business day. No upfront fees. No commitment before you receive a response.
Loan Parameters We Work Within
The parameters below represent the range across our active lender panel for commercial real estate bridge transactions. Individual lenders within the network have specific mandates that may sit within tighter ranges. Our role is to match your transaction to the lender whose parameters fit your deal precisely, not to the lender who is most prominent or most familiar.
| Parameter | Range | Notes |
|---|---|---|
| Loan size | $2M to $150M+ | Larger transactions above $100M may require club or syndicated structures. We advise on structure as part of the initial assessment. |
| Loan-to-value | Up to 80% of current value | Up to 75% of projected stabilised value for value-add transactions. Higher LTV requires additional credit support. |
| Loan tenor | 12 to 36 months | Extensions of 6 to 12 months are available at most lenders' discretion, subject to performance against the business plan. |
| Interest rate | Floating, typically SOFR or SONIA plus a spread | All-in rates vary by asset quality, LTV, sponsor track record, and market conditions. We provide indicative pricing as part of the structuring assessment. |
| Origination fee | 1 to 2 percent of loan amount | Typically deducted from the first advance or paid at closing. Exit fees may also apply depending on the lender. |
| Asset types | Office, retail, industrial, multifamily, mixed-use, hospitality, development sites | Healthcare and specialised assets considered on a case-by-case basis. Residential assets of 5 or more units qualify as commercial for bridge purposes. |
| Geographies | North America, Western Europe, Middle East, select Asia Pacific | Strongest lender appetite in primary and secondary markets in the US, UK, and Western Europe. Emerging market CRE considered on a case-by-case basis. |
| Recourse | Non-recourse to limited recourse | Most bridge lenders require a carve-out guarantee from a principal for standard bad-boy acts. Full recourse structures available at lower LTV. |
Asset Classes We Finance
Office
Acquisition and repositioning of single-tenant and multi-tenant office assets. Conversion plays including office-to-residential and office-to-mixed-use. Lease-up financing for recently refurbished or newly constructed office stock in markets with confirmed occupier demand.
Industrial and Logistics
Acquisition of last-mile logistics assets, distribution warehouses, and urban industrial properties. Value-add plays including clear-height upgrades, dock door additions, and ESG-led refurbishment. One of the strongest segments for bridge lender appetite in 2026 given sustained occupier demand and constrained supply.
Multifamily and Build-to-Rent
Acquisition bridge for stabilised or partially leased multifamily assets pending lease-up to stabilisation. Repositioning of older multifamily stock requiring unit renovation and amenity investment. Build-to-rent schemes at practical completion requiring a bridge to permanent investment-grade debt.
Retail and Mixed-Use
Repositioning of retail assets with a credible change-of-use or asset management strategy. Mixed-use acquisitions with complex income streams that do not fit standard mortgage underwriting. High street and urban retail in prime locations with active repositioning plans.
Hospitality
Acquisition and refurbishment of hotels, serviced apartment buildings, and extended-stay assets. Brand conversion plays requiring a carry period between flag removal and new flag commencement. Seasonal assets requiring bridge financing to fund pre-opening costs before trading revenue commences.
Development Sites and Land
Acquisition of sites with planning permission or in the planning process where construction finance will follow. Land banking for sponsors with a phased development programme. Site assembly bridge loans where multiple parcels need to be acquired within a short window before the composite site is refinanced onto a construction facility.
What Lenders Look For: The Five Underwriting Factors
Bridge lenders underwrite differently from conventional mortgage lenders but they are not less rigorous. Understanding what a bridge lender needs to see in a submission is the difference between a term sheet and silence. Every bridge lending decision rests on five factors assessed in combination.
Exit Strategy Credibility
The single most important underwriting factor in any bridge loan. The lender needs to understand precisely how and when the loan will be repaid. A credible exit is either a refinance onto permanent debt, supported by an independent assessment that the stabilised asset will support the required debt service at market rates, or a sale of the asset at a value that covers the loan balance with adequate margin. An exit strategy that depends on market conditions improving is not a credible exit strategy.
Sponsor Track Record
Bridge lenders advance against a business plan. The plan is only as credible as the person executing it. A sponsor who has completed similar value-add or repositioning transactions in the same asset class and geography will receive more favourable terms than one attempting an unfamiliar strategy for the first time. Track record does not require perfect prior performance but it does require demonstrated ability to execute comparable transactions to completion.
Asset Quality and Location
The underlying asset is the lender's security. Its quality, location, and liquidity in a forced sale scenario determine the lender's downside. Assets in liquid markets with multiple potential buyers at the lender's assessment of exit value give the lender comfort on recovery. Assets in thin markets, with limited comparable transactions, or with structural features that restrict the buyer pool reduce lender appetite and typically result in lower LTV offers.
Equity Contribution and Skin in the Game
A sponsor who is putting 20 to 35 percent of the capital stack from their own resources is a fundamentally different credit risk from one who is trying to finance 90 percent of the transaction. Meaningful equity contribution aligns the sponsor's incentives with the lender's interest. Thin equity contributions result in tighter loan terms, additional covenant protection, and sometimes a requirement for additional recourse to the sponsor.
Business Plan Specificity
A business plan that says the property will be leased up and refinanced is not a business plan. A business plan that identifies the target tenant profile, the required rental levels supported by comparable evidence, the specific capital expenditure programme with contractor quotes, the timeline to each lease milestone, and the target refinancing terms at stabilisation is a business plan a lender can underwrite. The more specific and evidenced the plan, the more confidence the lender has in the exit.
Current Valuation and Title
An independent valuation from a recognised firm is required for every bridge loan, typically at the borrower's cost. The valuation confirms both the current market value and the lender's assessment of stabilised value. Clean title with no undisclosed encumbrances, charges, or disputes is a prerequisite. Title issues are the most common cause of delayed or failed closings on transactions that have already received term sheets.
What Financely does before making any lender introduction: We review the business plan, assess the exit strategy, verify the asset details, check the LTV against lender parameters, and confirm that the sponsor's track record and equity contribution meet the threshold for a credible presentation. A submission that leaves our desk is one that a lender can assess and respond to. We do not forward incomplete or unstructured submissions.
Bridge Loan vs Conventional Commercial Mortgage: When Each Applies
| Factor | Bridge Loan | Conventional Mortgage |
|---|---|---|
| Underwriting basis | Exit value and business plan credibility. | Current net operating income and debt service coverage ratio. |
| Asset status required | Vacant, partially leased, transitional, or under-repositioning. | Stabilised, fully or near-fully leased, with established income history. |
| Closing timeline | 15 to 45 business days for well-prepared transactions. | 60 to 120 days or longer, depending on lender and complexity. |
| Tenor | 12 to 36 months. Short-term by design. | 5 to 30 years. Long-term permanent capital. |
| Cost | Higher all-in rate reflecting short tenor, flexibility, and transitional risk. | Lower rate reflecting stabilised asset quality and longer duration. |
| Prepayment flexibility | Typically open to prepayment after a short lock-out or with a modest exit fee. | Often carries yield maintenance or defeasance prepayment penalties. |
| Best suited for | Acquisitions with deadlines, transitional assets, value-add plays, refinancing of maturing loans. | Stabilised assets with long-term hold strategy and established income profile. |
What We Need From You to Get Started
The faster you provide the following information, the faster we can assess your transaction and identify the right lender. You do not need all of this at the point of first contact, but a complete submission produces a more specific and actionable response.
The Asset
Property type, address, and current use. Current occupancy and lease profile. Current market valuation or asking price. Any existing title, planning, or structural issues the lender will need to know about.
The Financing Requirement
Loan amount requested. Proposed LTV against current or projected value. Required tenor. Closing deadline if applicable. Whether interest can be serviced from cash flow or needs to be rolled or reserved.
The Business Plan
What you are doing with the asset. The specific value-creation or lease-up strategy. The capex programme with indicative costs. The target stabilised income and value. The exit route and timeline.
The Sponsor
Entity name and structure. Key principals and their roles. Relevant prior transactions in the same asset class and geography. Proposed equity contribution and source of equity funds.
On closing deadlines: If you have a hard closing deadline, tell us immediately when submitting. Bridge lenders can move quickly but they cannot compress legal, valuation, and compliance processes beyond a minimum threshold. A deadline of fewer than fifteen business days from first contact is tight for any structured real estate transaction. Do not withhold deadline pressure from your initial submission.
The Process: From Submission to Close
- Submit your transaction. Use our real estate financing page to provide the asset details, loan requirement, business plan summary, and sponsor information.
- Initial assessment. We review your transaction within one business day and assess which lenders have appetite, what LTV and terms are realistic, and whether any structuring work is needed before an introduction is made.
- Structuring recommendation. We provide a written assessment covering the recommended loan structure, indicative terms, required documentation, and a realistic closing timeline.
- Lender introduction. We introduce the transaction to matched lenders from our panel. We manage the introduction and remain engaged through the due diligence process on both sides.
- Term sheet and due diligence. The lender issues a term sheet. Legal, valuation, and title due diligence proceeds. We assist in resolving conditions and keeping the process moving toward close.
- Close. Loan documents are executed, funds are advanced, and the transaction closes.
Submit Your Bridge Loan Transaction
If you have a commercial real estate transaction that needs bridge financing, submit your details now. We assess every submission and revert with a structuring assessment and lender options within one business day. No upfront fees. No commitment required before you receive a response.
Frequently Asked Questions
What is a commercial real estate bridge loan?
A short-term debt facility of 12 to 36 months used to finance the acquisition, repositioning, or stabilisation of a commercial property asset before permanent financing is available. Underwritten against the exit value and the sponsor's business plan rather than the current property income.
What LTV do bridge lenders offer?
Typically 65 to 80 percent of current market value or purchase price, whichever is lower. Up to 75 percent of projected stabilised value for credible value-add transactions with experienced sponsors. Higher LTV requires additional credit support or a lower-leverage first tranche with mezzanine layered above.
How quickly can a bridge loan close?
A well-prepared transaction with clean title and a sponsor with a verifiable track record can close in 15 to 30 business days from term sheet. Complex ownership structures, title issues, or environmental concerns add time. Bridge lenders are materially faster than conventional mortgage lenders but the minimum realistic timeline is two to three weeks from term sheet to funding.
Do I need to have an existing lender relationship?
No. A significant share of the lenders in our panel do not require a pre-existing relationship. What matters is transaction quality: a credible exit strategy, a specific business plan, adequate equity contribution, and a sponsor with relevant track record. We introduce transactions on their merits, not on relationship history.
What property types do you finance?
Office, industrial and logistics, multifamily and build-to-rent, retail and mixed-use, hospitality, development sites, and land with planning or in the planning process. Healthcare and specialist assets considered case by case. Strongest lender appetite currently for industrial, logistics, and multifamily.
What does Financely charge?
Our fees are success-based and agreed transparently before any lender introduction is made. No upfront advisory fees. You do not pay until the transaction closes. The fee structure is explained as part of our initial assessment response.
Ready to Move Forward?
Submit your commercial real estate bridge loan requirement and receive a financing assessment within one business day.
Disclaimer: Financely operates as a finance advisory and deal origination platform. We do not lend directly. All financing decisions are made independently by lenders based on their own underwriting criteria, valuation, legal due diligence, and credit assessment. Loan parameters, LTV ranges, interest rates, and closing timelines described on this page are indicative and subject to change based on market conditions and individual lender mandates. Obtain independent legal and financial advice before committing to any real estate financing arrangement.