What Is a Commercial Bridge Loan?
A commercial bridge loan is short term financing used while a property is being acquired, renovated, leased up, stabilized, or prepared for permanent financing. It can help when a conventional lender needs more time or when the property does not yet meet permanent loan requirements. Commercial real estate bridge financing is commonly used for multifamily, office, industrial, retail, mixed use, hospitality, and other income producing property, subject to each lender's program and underwriting. CapitalAx is a commercial loan broker, not a direct bridge lender. We help borrowers compare bridge financing from private lenders, debt funds, family offices, and other commercial bridge lenders. The key to a bridge deal is a credible exit, such as a sale, a refinance into a commercial mortgage, or stabilization that supports longer term debt. Loan amounts, timing, pricing, leverage, and approval depend on the property, borrower, exit plan, and lender.
Deal Structure at a Glance
Who Is This For?
- Investors acquiring value add or distressed commercial properties
- Operators repositioning assets before permanent financing
- Business owners needing fast capital for time sensitive purchases
- Developers bridging to construction or permanent debt
- Borrowers with properties that don't yet qualify for conventional financing
Common Use Cases
- Acquisition of stabilizing or value add properties
- Bridge to permanent loan takeout
- Lease up period financing
- Renovation and repositioning capital
- Quick close competitive acquisitions
Borrower Scenarios
Examples of how this financing can be used.
An investor under contract on a 24 unit apartment building with below market rents, needing to close ahead of the seller's backup offer deadline, funded with a 12 month bridge loan.
A developer who just completed a 60 unit lease up nearing stabilized occupancy, bridging for a few months until the property seasons enough to qualify for agency permanent financing at significantly lower rates.
A partnership acquiring a distressed office building well below replacement cost, using bridge capital to fund the purchase and renovation before refinancing into a 10 year fixed conventional loan.
A foreign national investor purchasing a waterfront mixed use property that conventional lenders declined due to non standard income documentation, closed quickly through a private bridge lender.
Why Work With CapitalAx
We help borrowers organize bridge loans requests and compare lending sources that may fit the transaction.
Direct Relationships With Private Capital Sources
We source bridge capital directly from family offices, private debt funds, and non bank lenders who can issue term sheets in 48 hours and fund in under three weeks, cutting out the layers that slow institutional bridge lending.
Exit Strategy Engineering Before Closing
Every bridge loan we structure includes a mapped out exit to permanent financing. We pre qualify the takeout with conventional or agency lenders before the bridge closes, so there are no surprises when the bridge term matures.
Competitive Rate Shopping Across Capital Stacks
Bridge pricing varies wildly between lenders. We run every deal through multiple capital sources simultaneously and present you with a comparison of rates, fees, prepayment terms, and extension options so you make an informed decision.
Tools & Calculators
Commercial Mortgage and Loan Amortization Calculator
Calculate commercial mortgage payments, total interest, and a month by month loan amortization schedule.
Debt Yield Calculator
Calculate debt yield from NOI and loan amount, and see the maximum loan a lender's debt yield floor allows.
Property Financing Stress Test
Compare NOI, DSCR and supportable debt under changes in collected rent, expenses and borrowing rate.
Max Loan Calculator
Find out the maximum loan amount your property can support based on income and expenses.
Related Property Types
Looking for a different financing structure? Browse all loan programs.