Commercial Bridge Loans
Need to close fast or reposition a property before permanent financing?
Commercial bridge loans give investors and developers the speed and flexibility banks often can’t.
Commercial bridge loans are short-term loans designed to get you from “today” to your next event—stabilization, sale, or permanent takeout financing.
When a bank can’t move fast enough, or a property doesn’t fit neatly into their box, a bridge loan can let you secure the asset, improve it, and then refinance later on better long-term terms.
As a lending strategist, my role is to help you use bridge financing intelligently—so it improves your returns instead of just adding cost.
What Is a Commercial Bridge Loan?
A commercial bridge loan is a short-term, asset-based loan used to:
- Close quickly on an opportunity property
- Acquire underperforming or value-add assets
- Stabilize occupancy and cash flow before permanent financing
- Buy time for entitlement, construction, repositioning, or sale
Most bridge loans are interest-only with terms from about 6–36 months.
The lender focuses more on the strength of the property and the exit strategy than on perfect tax returns.
If your plan is to improve the property, raise rents, or complete construction and then refinance or sell, a bridge structure may be the right tool.
When Does a Bridge Loan Make Sense?
Bridge financing is ideal when one or more of these are true:
- You need to close fast and can’t wait for a full bank process.
- The property is not yet stabilized (vacancy, low rents, or recent turnover).
- You’re doing a major value-add or repositioning.
- Your tax returns are complex or tax-efficient, making bank underwriting difficult.
- You need flexible structure (interest-only, draws, extension options).
Bridge loans are commonly used for:
- Multifamily repositioning and lease-up
- Retail and office turnarounds
- Mixed-use properties needing improvements
- Refinancing maturing or distressed debt
- Short-term acquisitions before a planned refinance or sale
Used correctly, bridge financing is a strategic tool—not just “expensive money.”
Talk to Steve About a Bridge Loan
Typical Commercial Bridge Loan Terms
Terms vary by deal, but many commercial bridge loans share these characteristics:
- Term Length: ~6 to 36 months, often with extension options.
- Payments: Interest-only to maximize cash flow during the hold period.
- Leverage: Higher LTV/LTC than many banks will offer, depending on the deal.
- Speed: Faster approvals and closings than traditional bank loans.
- Flexibility: Ability to fund rehab, tenant improvements, or carry costs.
Rates and fees are typically higher than long-term permanent financing, but the tradeoff is speed, flexibility, and the ability to unlock deals that traditional lenders won’t touch yet.
Bridge Loan Qualification Basics
Bridge lenders focus on three main things:
1. The Property
- Asset type (multifamily, mixed-use, office, retail, industrial, etc.).
- Current occupancy and rent roll.
- Location and market demand.
- Physical condition and improvement plan.
2. The Sponsor
- Your experience as an investor or developer.
- Your financial strength and liquidity.
- Your team (property manager, contractor, partners).
3. The Exit Strategy
- Refinance into long-term debt after stabilization.
- Sale after improvements/value creation.
- Payoff from other capital events.
A clear, believable exit is often the most important part of the story.
My job is to help you present that story in a way that makes sense to the lender.
Bridge Loans vs. Bank Loans
Many of my clients ask whether they should go straight to a bank or use a bridge loan first. The answer depends on timing, property condition, and your goals.
| Bridge Loans | Traditional Bank Loans |
|---|---|
| Faster closings | Slower, more documentation |
| More flexible on property issues | Prefer stabilized, clean deals |
| Short-term (6–36 months) | Longer-term (5–10+ years) |
| Interest-only, higher rates | Amortizing payments, lower rates |
| Designed for transition and repositioning | Designed for stabilized, long-term holds |
Often, the smartest move is a bridge-to-perm strategy: use a bridge loan to acquire and improve, then refinance into lower-cost long-term debt.
For more on long-term options, see my main guide:
Commercial Real Estate Loans (2026 Guide).
What Can a Bridge Loan Finance?
- Acquisition of underperforming or distressed properties
- Short sales or time-sensitive opportunities
- Refinancing maturing or high-pressure existing loans
- Capital for renovations, tenant improvements, and re-tenanting
- Carrying costs while you complete entitlements or repositioning
Bridge loans can be used across multiple property types, including:
- Multifamily (5+ units)
- Mixed-use
- Retail and shopping centers
- Office and medical office
- Industrial and flex
- Hospitality (case by case)
See If Your Deal Qualifies for a Bridge Loan
Bridge Loan Rates, Fees & Costs
Bridge loan pricing depends on leverage, property type, business plan, and risk.
Generally, you can expect:
- Higher rates than long-term bank or agency loans.
- Origination fees and sometimes exit fees.
- Third-party costs (appraisal, environmental, legal, etc.).
The key question is not “What’s the lowest rate?” but:
“Does this structure make me more money overall?”
If a bridge loan lets you buy right, improve the asset, and refinance or sell at a much higher value, the return can far outweigh the short-term cost of capital.
For current commercial rate context, see:
Commercial Real Estate Loan Rates.
How We Structure Your Bridge Loan Strategy
I don’t just “shop a rate.” I help you design a full plan around your property and your exit.
- Understand the deal: property, purchase price, upside, challenges.
- Model the business plan: renovations, lease-up, re-tenanting, exit.
- Match the right capital source: private bridge, debt fund, or hybrid.
- Negotiate terms: leverage, reserves, extensions, and covenants.
- Plan the takeout: refinance or sale into the right next structure.
The goal is simple: better returns and fewer surprises.
Why Work With ABO Capital for Bridge Loans?
My name is Steve Abo. I’ve been helping investors and developers structure financing for decades, across residential, investor, and commercial deals.
- Investor-focused: I work with people who use real estate as a wealth-building tool.
- Multiple capital sources: private lenders, funds, and specialty bridge programs.
- Creative structuring: designed around your project and your exit strategy.
- Strategic guidance: not just “yes/no” on a loan, but perspective on what’s smart.
NMLS #358799
Work With Steve on My Bridge Loan
Commercial Bridge Loan FAQs
How fast can a commercial bridge loan close?
Timing depends on the deal and documentation, but bridge loans can often close much faster than traditional bank loans once we have the essentials lined up.
Do I need perfect credit for a bridge loan?
No. Bridge lenders are more focused on the property, equity, and exit strategy. Credit still matters, but it’s not the only factor.
Can a bridge loan fund renovations?
Yes. Many bridge programs are designed to finance both acquisition and renovation/rehab budgets, especially on value-add deals.
What happens at the end of the bridge loan term?
Most investors either refinance into longer-term financing or sell the property. Having a clear exit before you close is critical.
Where can I learn about other commercial loan options?
For an overview of all your options, see my main guide:
Commercial Real Estate Loans (2026 Guide).
Start Your Commercial Bridge Loan Strategy
If you’re looking at a time-sensitive acquisition, a value-add opportunity, or a property that doesn’t yet fit bank guidelines, a bridge loan may be the smartest way to move forward.
- Send me a quick summary of your property and business plan.
- We’ll schedule a focused strategy call.
- I’ll outline bridge options and map out the takeout plan with you.
Ready to explore your bridge loan options?
Steve Abo
ABO Capital
NMLS #358799