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Financing

Bridge Loan

Short-term (1-3 year) commercial loan used to acquire, stabilize, or reposition a property before permanent financing.

Full Definition

Bridge loans are short-term financing (typically 1-3 years) used for value-add acquisitions, lease-up periods, construction-to-permanent transitions, or time-sensitive opportunities. Higher rates than permanent financing (often 200-400+ bps over SOFR) but more flexible terms and faster close. Often interest-only with no amortization.

Related Terms

CMBS (Commercial Mortgage-Backed Securities)

Securitized commercial real estate loans pooled and sold as bonds to investors. Competitive rates but rigid terms.

Construction Loan

Short-term financing for ground-up development, disbursed in draws as construction progresses.

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