CRE Gap Financing & Bridging Loans

Commercial real estate buildings representing CRE bridge financing

Transitional CRE

Bridge the capital requirement to stabilization or exit

Financely arranges bridge and gap capital for value-add and transitional commercial real estate assets with defined business plans and credible refinance or sale exits.

Structures can incorporate interest reserves, capex and TI/LC escrows, cash management, intercreditor arrangements and covenant packages aligned with the asset's operating plan.

The mandate covers underwriting, capital-stack design, lender placement, term negotiation and execution through closing.

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Scope

Capital structuring and underwriting for transitional assets

The financing case is built around leverage, asset performance, reserves, business-plan execution and the credibility of the proposed exit.

Capital Stack Design

Senior and stretch senior bridge
Mezzanine debt
Preferred equity
A/B notes
Rescue capital

Underwriting & Modeling

NOI build
DSCR and debt yield
Lease-up assumptions
Capex requirements
Exit sensitivities

Security & Covenants

First or second lien
Assignment of rents
SNDAs and intercreditor terms
Interest and capex reserves
Cash sweeps and reporting

Lender Execution

Lender selection
Term-sheet comparison
Third-party reports
Closing coordination
Funding mechanics

Mandate Profile

Structures and asset types

Initial Dossier

What is required for underwriting

A complete initial file allows lenders to evaluate the sponsor, current property performance, business plan and exit assumptions.

Procedure

Four stages from underwriting to funding

1

Assess

Review the asset, sponsor, market, leverage requirement, business plan and proposed exit.

2

Underwrite

Analyze NOI, DSCR, debt yield, reserves, capex, lease-up and downside sensitivities.

3

Place

Map appropriate lenders, refine indicative terms and negotiate the capital structure.

4

Close

Coordinate diligence, conditions precedent, security, reserves, documentation and funding mechanics.

Pricing is driven by leverage and business-plan risk

Final economics depend on asset type, market depth, tenancy, leverage, stabilization risk, sponsor strength, exit assumptions and the required tenor.

Benchmark plus lender margin
Origination fees
Exit fees where applicable
Extension fees and tests
Legal and third-party costs
Advisory and arranging fees

Frequently Asked Questions

CRE bridge and gap financing

What is CRE gap financing?

Gap financing provides capital between the senior loan and the sponsor's equity where the primary facility does not fully cover the acquisition, refinancing, capex or stabilization requirement.

What is a CRE bridge loan?

A bridge loan is typically short- to medium-term financing used while an asset completes a defined transition such as acquisition, renovation, lease-up, stabilization or refinancing.

Can mezzanine debt or preferred equity be combined with senior debt?

Yes, subject to lender consent and an acceptable intercreditor or structural arrangement. The appropriate structure depends on leverage, remedies, cash flow and sponsor economics.

What exit does a bridge lender expect?

Common exits include refinancing into permanent debt following stabilization or selling the property. The exit must be supported by realistic timing, NOI, valuation and leverage assumptions.

Does Financely provide the loan directly?

No. Financely acts as advisor and arranger. Debt and equity are provided by third-party capital providers subject to underwriting, valuation, compliance, documentation and final approval.

Request a CRE bridge financing quote

Submit the property, sponsor profile, target facility, leverage, business plan, current operating information and proposed exit to receive a commercial quote for the mandate.