Bridge Loans
Published 12-19-2018
Bridge Commercial Loans
Bridge financing gives owners the flexibility they need to reposition and stabilize commercial real estate properties. It is important to note that Bridge loans usually call for a clear exit strategy upon the loan’s term completion.
Property types that fall under the Bridge Loan Program are as follows: apartments, industrial, medical, mixed use, office, retail, as well as self-storage.
Max LTV can go up to 90%. Term length ranges from 12-36 months. Amortization is interest only, self-amortizing or a combination of the two.
Debt Service Coverage Ratio requirements vary widely depending on the program and can usually range from sub 1 to 1.6 times.
Bridge loans are can be recourse and non-recourse with standard carve-outs for environmental, bankruptcy, fraud and misapplication of funds. Partial recourse and/or operating deficit and completion guaranty may be required for properties undergoing more significant renovation.
Prepayment penalty structures and exit fees might apply.
For more information on bridge loans please visit our bridge loans page.
