Commercial Real Estate
Bridge Loans

A commercial real estate bridge loan is short-term financing — typically 12 to 36 months, often with extension options — designed to bridge the gap between a property's current state and a future exit event: stabilization, sale, or permanent financing. Bridge loans are underwritten primarily on the property's projected value at stabilization (as-stabilized LTV), not its current income, making them essential for assets that cannot yet support permanent debt.

Bridge financing is most commonly provided by debt funds, mortgage REITs, and the bridge divisions of regional and national banks. Pricing is typically floating — most commonly SOFR plus a spread — and rates reflect the higher risk of transitional assets relative to stabilized permanent financing.

• Value-add acquisition: purchasing an underperforming or vacant property to renovate and lease to market occupancy
• Lease-up: financing a newly constructed or recently repositioned property while occupancy builds to stabilization thresholds
• Renovation and repositioning: funding a capital improvement program on an existing asset
• Loan maturity: short-term bridge financing while permanent financing is arranged or market conditions improve
• Quick close: bridge lenders can typically close faster than permanent lenders, making bridge financing valuable in competitive acquisition situations

• As-is LTV: typically 65–75% of current appraised value
• LTC (loan-to-cost): 65–80% of total project cost including acquisition and renovation budget
• As-stabilized LTV: most lenders cap at 70–75% of projected stabilized value
• DSCR: bridge lenders often accept sub-1.0x coverage on transitional assets
• Floating rate: typically SOFR + 250 to SOFR + 600 bps, with a rate floor
• Interest-only: most bridge loans are interest-only during the term

Bridge loan pricing and structure vary dramatically by lender. Finding the most competitive spread, highest advance rate, and most flexible extension terms requires broad lender access — which is exactly what Gumption provides:

• 700+ lenders including debt funds, mortgage REITs, bridge banks, and alternative lenders
• 4+ competing term sheets in 3 business days — compare spread, floor, LTC, recourse, and extension options
• AI-powered matching routes your transitional asset to lenders actively deploying bridge capital in your asset class and market
• Dedicated advisors experienced in bridge capital structures, business plan underwriting, and bridge-to-perm transitions
• Free to submit and receive term sheets — Gumption charges borrowers an origination fee only when a loan closes with a recommended lender