Bridge & Value-Add Financing

One-line summary: Short-term, interest-only financing for acquisition, lease-up, repositioning, or pre-stabilization holds, bridging the gap until the property qualifies for permanent agency or bank financing.

Best for

Investors acquiring properties that need work before they qualify for permanent financing: lease-up, rehab, repositioning, partially vacant assets, or distressed acquisitions. Also used to close fast on opportunistic deals when permanent financing would take too long, then refinance once stabilized.

Key terms (typical)

Attribute	Typical Range
Eligible properties	5+ unit multifamily (various conditions)
Loan amount	$1 million to $50 million+
Loan-to-cost (LTC)	Up to 80–85% on acquisition + rehab
Loan-to-value (LTV)	Up to 75–80% of stabilized value
Term	12 to 36 months, often with extension options
Rate type	Floating, typically tied to SOFR plus a spread
Interest payment	Interest-only during the term
Recourse	Varies, non-recourse common; some lenders require recourse on lease-up
Prepayment	Typically open after a short lockout (often 6–12 months)

Why borrowers choose this program

• Speed. Bridge lenders can close in 30 days or less when needed, vs. 60–90+ days for agency.
• Property condition flexibility. Bridge programs finance deals that are partially vacant, mid-rehab, or otherwise pre-stabilization.
• Interest-only payments. Preserves cash flow during lease-up or value-add execution when net operating income is below stabilized levels.
• Built for a takeout. Most bridge loans are structured assuming you’ll refinance into agency or bank permanent financing within 12–36 months. We structure the entry and exit together.

Considerations

• Higher cost. Bridge rates are typically 200–500 basis points above agency permanent financing, sometimes more depending on the deal. The cost is justified by the optionality and speed, but it’s real money.
• Floating-rate exposure. Most bridge debt floats over SOFR. Rate caps are typically required and add to the closing cost.
• Execution risk. The exit plan matters more than the entry. If the property doesn’t stabilize on schedule, an extension or a second bridge may be needed.