What is a commercial bridge loan?

A commercial bridge loan is short-term financing (6–36 months) that bridges the gap between an immediate capital need and permanent financing. Bridge loans close in 2–4 weeks, ideal for time-sensitive acquisitions, construction completion, or property transitions where conventional lenders are too slow.

How fast can a bridge loan close?

Bridge loans close in 2–4 weeks from full submission — far faster than conventional commercial loans (60–90 days) or SBA loans (90–180 days). You pay a premium rate in exchange for speed and closing certainty.

What are typical bridge loan interest rates?

Bridge loan rates range from 9–14% depending on deal quality, property type, and borrower strength. Multifamily bridge prices tightest (9.00–10.50%); office bridge prices widest (10.50–14.00%). Many programs offer no prepayment penalty, allowing you to refinance into permanent CMBS or bank debt as soon as it is available.

What credit profile do I need for an asset-based bridge loan?

On PeerSense's 50% LTV asset-based bridge programs the underwriting is property-first, no tax returns, no W-2 income tests, no FICO floor on qualifying scenarios. The property's as-is value, the exit, and the protective 50% LTV cushion are the underwriting. Borrowers with prior bankruptcies, recent foreclosures, FICO below 600, foreign-national status, or no U.S. credit history can all qualify when the deal pencils on the asset. Tighter 65–75% LTV bridge programs do enforce 680+ FICO and full personal financial disclosure, but those programs are not the right fit for the distressed, fast-close, or credit-flex scenarios where asset-based bridge actually solves the problem.

What property types qualify for bridge financing?

Bridge loans cover office, retail, industrial, multifamily, hospitality, self-storage, mixed-use, and land. Both stabilized and transitional properties qualify. Foreign national borrowers are accepted on select programs for U.S. commercial real estate acquisitions.

What is the typical loan-to-value (LTV) on bridge loans?

PeerSense places asset-based bridge debt at a conservative 50% maximum LTV against as-is property value. The 50% LTV cushion is precisely what enables property-only underwriting (no tax returns, no FICO floor on qualifying scenarios), distressed-OK sponsor profiles, and 14–30 day close. Higher-LTV bridge programs (65–75%) exist in market but require full personal financial disclosure, FICO floors of 680–700+, and 45–60 day closes. The pricing trade-off is real — 50% LTV asset-based bridges typically clear at 9–13% versus 9–10.5% on full-doc 65–75% LTV programs. For deals where speed, credit-flex, or distressed status are the binding constraints, the 50% LTV asset-based path is the only execution that closes.

Can I refinance a bridge loan early without penalty?

Many bridge loan programs offer no prepayment penalty, allowing you to refinance into permanent financing as soon as it is available. Negotiate this feature upfront — prepayment flexibility is critical if early exit into CMBS or bank debt is likely.

How is a bridge loan different from mezzanine financing?

Bridge loans are senior debt (first lien) for speed and short-term use. Mezzanine is subordinated debt (second lien) that fills capital stack gaps when senior debt falls short. Bridge has lower rates but shorter terms; mezzanine has higher rates but longer hold periods. Many deals combine both.

What is the typical exit strategy for a commercial bridge loan?

The four most common exits are refinance into CMBS at stabilization (10-year fixed non-recourse), refinance into agency (Fannie/Freddie) for stabilized multifamily, refinance into bank or life-company permanent financing, or sale at stabilization. PeerSense pre-underwrites the takeout the same day as the bridge so the exit economics are modeled before signing.

How much sponsor experience do bridge lenders require?

Institutional bridge lenders typically require 3+ comparable exits and $50M+ AUM for non-recourse pricing at SOFR + 470–600 (≈ 9.0–10.3%). Middle-market specialty lenders accept 1–2 prior exits with a strong KP guarantor at SOFR + 600–725 (≈ 10.3–11.6%). First-time sponsors pay 200–300 bps more and accept partial recourse but can still close.

What is bridge-to-perm or bridge-to-agency financing?

Bridge-to-permanent is a structure where the bridge lender pre-underwrites the permanent takeout at origination. The borrower locks economics on the 12–24 month bridge AND the 5/7/10-year CMBS or agency loan in one transaction. This eliminates re-underwriting risk and typically tightens bridge pricing 25–75 bps.

What is a bridge-to-permanent financing strategy for commercial real estate?

A bridge-to-permanent financing strategy uses short-term bridge capital (12–36 months, interest-only, 9–14%) to acquire, reposition, or stabilize a commercial property, then refinances into long-term permanent debt, CMBS conduit, agency (Fannie/Freddie multifamily), bank, or life-company, once the asset clears stabilized DSCR (1.25x+) and occupancy thresholds. The strategy works in three steps: (1) close the bridge fast against the property's transitional value to fund the acquisition or capex, (2) execute the business plan (lease-up, renovation, PIP, repositioning) during the interest-only bridge term, (3) pre-underwrite the permanent takeout 60–90 days before stabilization so the refinance is locked before the bridge matures, not scrambled at the deadline. Sponsors who pre-arrange the exit at bridge origination typically price 25–75 bps tighter than those who shop the takeout after the fact. As of July 2026.

Can foreign national investors get a U.S. commercial bridge loan?

Yes, select bridge programs accept foreign-national borrowers for U.S. commercial real estate. Typical terms: 60–65% LTV, U.S.-based LLC ownership, 12-month interest reserve, asset-based underwriting (no U.S. tax returns required). Owner-occupied and SBA programs are not available, only investment CRE and bridge.

Will an asset-based bridge lender consider a distressed or special-situation scenario?

Yes, asset-based bridge debt at 50% LTV exists precisely for special situations. PeerSense places bridge capital on foreclosure rescues (where the sponsor needs to close before the auction), broken-deal rescues (where the prior lender pulled funding mid-escrow), partner buyouts under litigation pressure, post-bankruptcy sponsors with no clean credit yet, deeds-in-lieu, note purchases, and DPO (discounted payoff) recapitalizations. The protective 50% LTV cushion against as-is value is what makes these scenarios fundable, there is enough equity in the asset for the lender to recover even in a forced-sale scenario, so the lender does not need to lean on personal income or FICO.

What does a commercial bridge loan actually cost over the life of the deal?

On a $10M bridge at 10% interest-only for 18 months: $1.5M total interest + $150K origination (1.5%) + $40K legal/appraisal/environmental + $25K extension fee = ~$1.71M total cost (17.15% of loan). After exit into CMBS at 6.75%, the borrower saves $325K/year in interest, breaking even on the bridge cost in about 6 years.

What happens if a multifamily sponsor is at risk of default on a SOFR-indexed bridge loan?

A multifamily sponsor facing default on a floating-rate SOFR bridge loan typically has several paths before foreclosure. In rough order of preference: an interest reserve top-up or rate cap if the shortfall is rate-driven rather than a business-plan failure, a maturity extension using the standard 6-month extension options built into most bridge terms if the asset is on track to stabilize but needs more time, a discounted payoff (DPO) recapitalization where the sponsor or a new capital partner buys the loan at a discount to par, a deed-in-lieu of foreclosure, or a note sale to a special-situations buyer. These are the same workout paths that apply broadly across distressed and special-situation bridge scenarios, foreclosure rescues, broken-deal rescues, and partner buyouts under pressure. PeerSense works both sides of these situations, recapitalization and extension on one side, note-sale and workout placement on the other.

What is an interest rate cap, and why do bridge lenders require one on a bridge loan?

Most commercial bridge loans price as a floating rate, SOFR plus a spread (typically 450 to 800 basis points on institutional-grade to transitional deals), so the borrower's payment moves with SOFR at every reset. Because the loan floats, most institutional bridge lenders require the borrower to purchase an interest rate cap as a closing condition, a hedge instrument that pays the borrower the difference whenever SOFR rises above an agreed strike rate, protecting both the borrower's debt service and the lender's underwritten DSCR from a rate spike during the bridge term. The cap's notional amount is sized to match the loan amount, not a separate loan. The strike rate, the SOFR level above which the cap begins paying out, is the main cost lever: a strike close to current SOFR costs more upfront, a strike set well above current SOFR costs less but protects less. Cap term typically matches the bridge term (12 to 36 months) and can be extended alongside loan extension options. The premium is an upfront cost, not amortized like interest, and is driven by notional amount, strike rate relative to current SOFR, term length, and market rate volatility, purchased from a third-party derivatives provider rather than the bridge lender itself. PeerSense helps sponsors size the notional and strike against the lender's DSCR covenant and factor the cap premium into total cost-of-capital analysis alongside origination fees and closing costs.

/ 01 · Asset-Based Bridge Capital Advisory

Property-First Bridge Capital. 50% LTV. No Tax Returns. No Personal Income Tests.

$1M to $50M+. 12–36 month terms. Bridge rates typically 8.99% to 14%. We place asset-based bridge debt where the property carries the underwriting, not the borrower's tax returns. Distressed sponsors, FICO challenges, fast-close scenarios, and broken-deal rescues all welcome.

50% max LTV · property only14–30 days closeNo FICO floor · no tax returns

Call (317) 452-6990

$1M-$100M+

Deal range

Single asset to cross-collateralized portfolio

50% max LTV

Asset-based ceiling

Property-only, conservative as-is value

14-30 days

Close speed

No tax-return / W-2 dependency

8.99-14.00%

July 2026 rate

Property, exit & timing drive pricing

Read your leverage against the bridge lane in seconds

The 50% LTV asset-based lane funds with no tax returns and no FICO floor. See where your deal lands and what it should price.

Bridge Deal SizerPeerSense lender intel · July 2026

As-is property value

Capital needed

Scenario

Indicative readAsset-based lane

Loan to as-is value

50.0%

Property-only underwriting

Indicative rate band

10.00 to 13.00%

Interest-only, 12 to 36 months

Close window

2 to 4 weeks

Est. $47,917/mo carry at mid-band

At 50% of as-is value this sits in the property-only lane. No tax returns, no FICO floor, priced on the asset and the exit.

Your Bridge Lender-Fit ReportPrepared from your inputs

Capital source lane

Rate positioning

Leverage guidance

Recommended path

Complimentary. We ask for your phone so a real advisor can walk it through with you. No credit pull, held in confidence.

Indicative sizing from PeerSense lender intelligence, not an offer of terms or a quote. Final structure depends on full underwriting.

Quick Bridge / Hotel Refi Rate Estimate

60 seconds · No credit pull · No spam, just rate ranges

By submitting you agree to receive emails, calls, and texts about rates from PeerSense Capital Advisory. We do not sell or share your data.

Last updated: July 1, 2026·By Ed Freeman, Capital Advisor. PeerSense

Quick Answer

Commercial bridge loan at 50% LTV

A commercial bridge loan at 50% LTV is the institutional asset-based standard, short-term financing sized to half the property's as-is value so the lender can skip tax returns, FICO floors, and DSCR income tests. The 50% LTV cushion is what funds distressed assets, foreclosure rescues, and partner buyouts inside 14–30 days. Typical terms run 12–36 months, interest-only, with a pre-engineered exit into CMBS or agency permanent debt at stabilization. As of July 2026.

, PeerSense Capital Advisory · Written by Ed Freeman, Founder. Updated July 2026.

Quick Answer

What is a 50% LTV bridge loan?

A 50% LTV bridge loan is the institutional standard for asset-based commercial property financing, no tax returns, no FICO floor, distressed and transitional properties accepted. The conservative 50% LTV lets lenders price on property value alone without DSCR or sponsor cash-flow underwriting. Typical 2026 rates run 9% to 14% with 12–36 month terms. The exit strategy is usually a take-out to CMBS or agency permanent debt once the asset stabilizes. PeerSense places bridge capital at this protective 50% LTV cushion, the only structure that funds foreclosure rescues, broken deals, and partner buyouts inside 14–30 days.

, PeerSense Capital Advisory · Written by Ed Freeman, Founder. Updated July 2026.

What is the typical interest rate on a commercial bridge loan?

Commercial bridge loan interest rates range from 9.00% to 14.00% in July 2026 depending on property type, leverage, sponsor strength, and exit visibility. Multifamily and industrial price tightest at 9.00–10.75% on stabilizing value-add assets. Hotel and office price widest at 9.75–14.00% reflecting higher operational and transition risk. Pricing is typically structured as SOFR + a spread (SOFR + 450–650 bps for institutional-grade deals, SOFR + 650–800 bps for smaller or transitional deals). Origination fees add 1–2 points upfront. Lower leverage at the protective 50% LTV asset-based level often prices similar to or below 65–75% LTV full-doc bridge.

How long does a commercial bridge loan term last?

Commercial bridge loan terms typically run 12 to 36 months, with a 24-month base term and two 6-month extension options being the most common institutional structure. Extensions price at 25–50 basis points each and require the loan to be current with no material adverse change. Shorter 12-month terms suit foreclosure rescues, 1031 acquisitions, and broken-deal takeovers where a fast permanent refinance is already lined up. Longer 36-month terms suit heavy value-add, PIP renovations, and lease-up stories that need full stabilization before CMBS or agency take-out. Bridge is interest-only throughout, no amortization erodes proceeds.

What is the difference between a bridge loan and a CMBS loan?

Bridge and CMBS are different lanes on the same capital stack. Bridge is short-term floating-rate transitional debt (12–36 months) at 9–14% for properties not yet stabilized, value-add, lease-up, PIP renovation, distressed acquisition. CMBS is long-term fixed-rate permanent debt (5–10 years) at 5.50–7.10% for stabilized cash-flowing assets at 1.25x+ DSCR and 85%+ occupancy. Most strong CMBS deals start as bridge: the bridge provides capital to stabilize, and the asset graduates into CMBS at a fraction of the bridge rate. PeerSense pre-underwrites the CMBS take-out the same day the bridge signs to lock in the exit economics.

How does the bridge exit strategy map to the lender archetype?

Four canonical exit archetypes drive virtually every bridge placement: hard-money exit (10–14% rates, 50–60% LTV, 12–18 mo) via portfolio bridge funds for distressed and foreclosure rescue; CMBS take-out exit (9–12% bridge → 6.25–7.50% CMBS perm) via bridge-to-perm shops for hotel PIP and value-add multifamily; agency take-out exit (9–10.5% bridge → 5.85–6.85% agency) via agency-experienced bridge lenders for multifamily once stabilized at 1.25x+ DSCR; and sale-leaseback exit (9.5–13% bridge) via small-balance bridge with niche lease underwriting for owner-occupied CRE. The exit dictates the lender, match the wrong archetype and the bridge re-prices at maturity.

How does bridge debt price by deal size?

Bridge prices in three execution tiers, not at a single market coupon: small-balance bridge $1M–$5M at 50–65% LTV and 10–14% rates from a pool of 50+ small-balance shops; mid-balance bridge $5M–$25M at 55–70% LTV and 9–12% rates from 25–30 institutional bridge funds; institutional bridge $25M–$50M+ at 50–65% LTV and 8–11% rates from 10–15 major bridge platforms plus balance-sheet lenders. Above $50M, structured bridge gives way to CMBS bridge programs and balance-sheet bank construction-perm hybrids. The same value-add story prices 200–300 bps tighter at $25M than at $3M because the lender pool deepens.

What is a PIP carve-out and why does it decide the bridge lender?

A PIP carve-out is the separate-escrow mechanism a PIP-aware bridge lender uses to fund hotel brand-flag renewals, multifamily renovation reserves, or retail tenant improvement allowances. On a $35M hotel acquisition + $5M PIP = $40M total project, the right lender funds the acquisition at 60% LTV ($21M) and escrows the PIP separately at 100% advance ($5M) against an approved draw schedule with lien waivers and inspector sign-off. The wrong lender lumps PIP into principal at $40M × 60% = $24M, so the sponsor pays interest on undeployed capital from day one and acquisition leverage compresses to 54.3% LTV with a $2M equity gap. Same coupon, materially worse deal.

Why are multifamily sponsors facing bridge loan distress in 2026?

The 2021 and 2022 vintage floating rate bridge loans are the pressure point. Many value add multifamily sponsors bought at low cap rates and financed with short term bridge debt priced at SOFR plus a spread, betting on rent growth and a quick agency refinance. SOFR then reset far higher and stayed there, so debt service roughly doubled while rent growth flattened and expenses rose. Deals that penciled at a 3.5 percent all in rate now carry 8 to 11 percent bridge coupons, and the trailing NOI no longer clears the 1.25x agency refinance DSCR. That gap is what drives 2026 sponsor distress: expiring rate caps, maturing bridge that cannot refinance in place, and capital calls. The workout is usually a fresh bridge sized to current value with a rate cap, or a bridge to agency once the property re stabilizes. PeerSense structures the rescue bridge and pre underwrites the agency take out at signing.

Bridge Loan LTV & Terms by Lane

The pure asset-based, property-only bridge lane is sized conservatively at 50% LTV. That protective cushion is what lets the lender skip tax returns and FICO floors and fund distressed scenarios.

As of July 2026

Lane	Max LTV	Underwriting	Term	Typical Close
Asset-based bridge (property-only)	50%	No tax returns, no FICO floor, distressed OK	12–36 mo I/O	14–30 days
Stabilized / cash-flowing (CMBS gold-standard exit)	60–65%	Property cash flow, 1.25x+ DSCR	5/7/10 yr	45–90 days

The pure asset-based bridge lane tops out at 50% LTV against as-is appraised value, the conservative cushion is precisely what enables property-only underwriting and a fast close. Stabilized, cash-flowing assets refinance into the 60–65% commercial gold-standard permanent band at a fraction of the bridge rate. Indicative as of July 2026.

Exit Strategy Mapping

Bridge Exit Strategy → Lender Archetype

The exit dictates the lender. Bridge debt is short-dated transitional capital and the lender archetype writing the loan is selected by the take-out economics, not the front-end coupon. Four canonical exit archetypes drive virtually every $1M–$100M+ bridge placement PeerSense routes. Match the wrong archetype and the bridge re-prices at maturity, the take-out fails to clear DSCR, or the loan extends into default-rate territory. The right archetype pre-underwrites the take-out on day one and tightens the bridge spread 25–75 bps before the bridge note even funds. See the related asset-based vs. bank financing pillar for the four-dimension underwriting framework, or the CMBS permanent page for the most common take-out destination.

Hard-money exit

Highest cost · Fastest close

Rate band: 10.00–14.00%
Leverage: 50–60% LTV (as-is)
Term: 12–18 months
Lender archetype: Portfolio bridge fund

Use case: Distressed asset stabilization, foreclosure rescue, time-critical purchase, broken-deal rescue, partner buyout under litigation pressure.

Hard-money exit playbook →

CMBS take-out exit

Gold standard takeout

Rate band: 9.00–12.00% bridge · 6.25–7.50% perm
Leverage: 60–70% bridge · 60–65% CMBS
Term: 24–36 months → 5/7/10-yr CMBS
Lender archetype: Bridge-to-perm shop

Use case: Hotel PIP completion, value-add multifamily stabilization, retail repositioning, office reposition with trailing-12 NOI proof.

CMBS permanent take-out →

Agency take-out exit

Multifamily-only

Rate band: 9.00–10.50% bridge · 5.85–6.85% agency
Leverage: 65–75% LTC bridge · 70–80% agency
Term: 24–36 months → 7/10/30-yr agency
Lender archetype: Agency-experienced bridge lender

Use case: Multifamily acquisition + renovation, value-add lease-up, agency-eligible properties stabilizing to 1.25x+ DSCR and 90%+ occupancy.

Agency multifamily rates →

Sale-leaseback exit

Owner-occupied CRE

Rate band: 9.50–13.00% bridge · cap-rate dependent
Leverage: 50–65% LTV (as-is)
Term: 12–24 months → SLB recap
Lender archetype: Small-balance bridge with niche lease underwriting

Use case: Owner-occupied warehouse, manufacturing facility, distribution center, or specialty industrial where the operator recapitalizes via long-dated NNN sale-leaseback at stabilization.

Owner-occupied asset-based lane →

Capital-stack archetypes · PeerSense capital advisory · Updated July 2026

Deal-Size Tier Bands

How Bridge Debt Prices by Size Band

Bridge loans price by tier, not by a single market coupon. The same value-add multifamily story prices 200–300 bps tighter at $25M than at $3M because the lender pool deepens, the syndication mechanics improve, and the take-out economics on a CMBS or agency permanent become easier to underwrite at origination. Three execution tiers cover virtually every PeerSense bridge placement.

Bridge Deal-Size Tier Bands, July 2026 Indications

Tier	Size Range	LTV	Rate	Term	Recourse	Lender Pool
Small-balance bridge	$1M–$5M	50–65% LTV	10.00–14.00%	12–24 months	Often non-recourse · asset-class focused	50+ small-balance bridge shops
Mid-balance bridge	$5M–$25M	55–70% LTV	9.00–12.00%	18–36 months	Recourse / non-recourse depends on lender	25–30 institutional bridge funds
Institutional bridge	$25M–$50M+	50–65% LTV	8.00–11.00%	18–36 months	Non-recourse with bad-boy carve-outs	10–15 major bridge platforms + balance-sheet lenders
Above $50M, structured bridge gives way to CMBS bridge programs and balance-sheet bank construction-perm hybrids.

Small-balance bridge

$1M–$5M

Asset-class focused underwriting. Sponsor depth required at the lower end. Light personal-financial disclosure on the protective 50% LTV path.

Mid-balance bridge

$5M–$25M

Full sponsor underwriting expected. CMBS or agency take-out pre-modeled. Most active band for value-add multifamily, retail repositioning, hotel PIP, and industrial last-mile.

Institutional bridge

$25M–$50M+

Full bond-style underwriting. Lender-side syndication common above $35M. SASB CMBS take-out is the most frequent perm destination at $50M+.

Capital-stack archetypes · PeerSense capital advisory · Updated July 2026

PIP Carve-Out Mechanics

Why the PIP Carve-Out Decides the Lender

PIP (Property Improvement Plan) is the brand-mandated capital schedule a hotel franchisor enforces on the asset over a defined renewal window, but the term applies more broadly across CRE bridge underwriting wherever a defined, draw-eligible capital program lives alongside the acquisition. In hotel bridge it is the brand-flag renewal carve-out. In multifamily bridge it is the renovation reserve. In retail bridge it is the tenant improvement allowance. The mechanics are similar across asset classes, and the lender archetype is critical.

PIP-Aware Bridge Lender

Escrows the PIP separately

The lender funds the acquisition tranche at the agreed bridge LTV against as-is value, then escrows the full PIP amount into a separate disbursement account. Draws release against approved invoices, lien waivers, and inspector sign-off. The acquisition leverage is preserved at face value. The PIP advance is 100% (sometimes net of a 5–10% holdback) of the approved capital schedule.

Worked example

Acquisition price$35,000,000
Approved PIP$5,000,000
Total project$40,000,000
Acquisition bridge (60% LTV)$21,000,000
PIP escrow (100% advance)$5,000,000
Total bridge proceeds$26,000,000

Effective acquisition leverage = 60.0% LTV. PIP is treated as a separate ring-fenced facility, not principal balance the sponsor has to carry interest on from day one.

PIP-Naive Bridge Lender

Lumps the PIP into principal

The lender quotes a single LTV against total project cost, and the PIP is treated as borrowed principal from day one. The sponsor carries interest on the full balance immediately, even though the PIP capital is not yet deployed. The effective acquisition leverage compresses, and the bridge re-prices when the lender realizes the take-out economics do not clear.

Same deal, wrong lender

Total project cost$40,000,000
Single-LTV bridge (60% LTC)$24,000,000
Effective acquisition leverage54.3% LTV
Sponsor equity gap$2,000,000
Day-1 interest carryFull $24M balance

Sponsor pays interest on undeployed PIP capital from day one. Acquisition leverage is materially compressed. Same coupon, materially worse deal.

Why This Decides the Archetype

PeerSense routes hotel PIP, multifamily renovation, and retail TI carve-outs exclusively to bridge lenders with documented carve-out facility experience. The archetype is small in number. Most generic balance-sheet bridge funds will quote a single-LTV number against total project cost because their underwriting platform does not support draw-disbursement mechanics. The right archetype is essential. For the hotel-specific playbook, see the hotel PIP → CMBS strategy pillar or model your specific deal in the hotel PIP cost calculator. For the broader hotel financing context, see the hotel financing hub.

Capital-stack archetypes · PeerSense capital advisory · Updated July 2026

Bridge Loan Rates by Property Type, July 2026

As of July 1, 2026

Program	Current Rate	Term	Loan Size	Best For
Multifamily Bridge	8.99–10.50%	12–36 mo	$5M – $100M	Stabilizing value-add, lease-up
Industrial Bridge	9.00–10.75%	12–36 mo	$5M – $50M	Last-mile, distribution, repositioning
Hotel Bridge	9.75–13.00%	12–24 mo	$5M – $50M	PIP renovation, brand conversion
Retail Bridge	9.50–12.00%	12–24 mo	$5M – $30M	Re-tenanting, repositioning
Office Bridge	10.50–14.00%	12–36 mo	$5M – $50M	Conversion (residential, life-sciences)
Self-Storage Bridge	9.25–11.00%	12–24 mo	$3M – $40M	Lease-up, expansion, stabilization

Multifamily Bridge8.99–10.50%
Term
12–36 mo
Loan Size
$5M – $100M
Best For
Stabilizing value-add, lease-up
Industrial Bridge9.00–10.75%
Term
12–36 mo
Loan Size
$5M – $50M
Best For
Last-mile, distribution, repositioning
Hotel Bridge9.75–13.00%
Term
12–24 mo
Loan Size
$5M – $50M
Best For
PIP renovation, brand conversion
Retail Bridge9.50–12.00%
Term
12–24 mo
Loan Size
$5M – $30M
Best For
Re-tenanting, repositioning
Office Bridge10.50–14.00%
Term
12–36 mo
Loan Size
$5M – $50M
Best For
Conversion (residential, life-sciences)
Self-Storage Bridge9.25–11.00%
Term
12–24 mo
Loan Size
$3M – $40M
Best For
Lease-up, expansion, stabilization

Network pricing snapshot · PeerSense capital advisory · Updated May 27, 2026. Institutional bridge floor now 8.99% on best-execution multifamily value-add. Pricing varies with sponsor profile, leverage, and exit visibility.

See full daily-updated bridge rate detail at Today’s Bridge Loan Rates, or compare across all programs at the Commercial Lending Rates Hub.

2026 Market Data

CRE Maturity Wall: $936B maturing in 2026Bridge Rates: 8% – 14.5% (leverage dependent)CBRE Lending Index: Up 112% YoY (highest since 2018)Investor Trend: Short-term capital for flexibility & controlOpportunity: Maturity wall creates buyer demand for bridge capital

What Are Bridge Loans?

Bridge loans are short-term financing designed to move fast on time-sensitive opportunities. They "bridge" the gap between immediate capital needs and permanent financing, allowing you to close deals that conventional lenders can't accommodate on your timeline.

Speed

Close in 2–4 weeks from full submission. When you need to move faster than banks or SBA can accommodate, bridge financing delivers.

Transition

Perfect for properties in transition, construction completion, lease-up, repositioning, or stabilization before permanent financing.

Flexibility

No prepayment penalty options available. Foreign national borrowers accepted on select programs. Multiple exit strategies supported.

USE CASES

When You Need a Bridge Loan

Bridge loans solve timing problems that conventional financing can't accommodate. Here are the most common scenarios:

Time-Sensitive Acquisition

Seller needs to close in 30 days. Your bank needs 90. Bridge financing gets you to the table.

Existing Lender Too Slow

Your permanent lender is committed but can't close on your timeline. Bridge now, refinance later.

Property in Transition

Lease-up, repositioning, or value-add projects that don't qualify for permanent financing yet.

Construction Completion

Project is 80% complete but construction lender won't extend. Bridge to completion and stabilization.

Buy Before You Sell

Found the perfect property but haven't sold your current one. Bridge lets you move without waiting.

Competitive Offer Advantage

All-cash equivalent offers win deals. Bridge financing gives you that competitive edge.

Total Cost of Bridge Debt: What You Actually Pay

Bridge loan rate is only part of the cost. Here's the full picture on a $10M bridge loan at 10% for 18 months. Bridge and asset-based no-doc CRE both sit at roughly 50% LTV, but they're different products, bridge is short-term transitional capital with a pre-engineered exit into permanent debt, while no-doc is a stand-alone property-only execution for sponsors skipping income documentation entirely.

$10M Bridge Loan, 18 Month Hold

Loan Amount$10,000,000

Interest Rate10.00%

Monthly Interest (I/O)$83,333

Total Interest (18 mo)$1,500,000

Origination Fee (1.5%)$150,000

Legal & Closing$25,000

Appraisal & Environmental$15,000

Extension Fee (6 mo @ 0.25%)$25,000

Total Cost of Capital$1,715,000

17.15% of loan amount over 18 months

After Refi to CMBS at 6.75%, Annual Savings

Bridge Annual Interest$1,000,000

CMBS Annual Interest$675,000

Annual Savings$325,000

5-Year Savings$1,625,000

10-Year Savings$3,250,000

The bridge loan costs $1.7M over 18 months, but the permanent CMBS refi saves $325K every year. The bridge pays for itself in under 6 years, and you hold non-recourse fixed-rate debt for the remaining term.

Worked Example

How a $8M Bridge Loan Actually Gets Structured

A real-world bridge deal walkthrough, from sponsor profile to exit. This is the structure PeerSense most often arranges for value-add CRE in 2026.

Deal Snapshot

AssetClass B office, 110,000 SF
StrategyValue-add reposition + lease-up
Purchase Price$10.4M ($95/SF)
CapEx Budget$1.6M (TI + lobby + HVAC)
All-In Basis$12.0M
Stabilized Value$15.8M (7.0% cap on $1.1M NOI)
Sponsor3 prior office reposition exits

Bridge Loan Terms

Loan Amount$8.0M (67% LTC)
RateSOFR + 720 = 11.52%
Payment TypeInterest-only
Term18 months + two 6-mo ext.
Origination Fee1.50% ($120K)
RecourseNon-recourse w/ carve-outs
ExitCMBS at stabilization (~Mo 16)

Why This Structure Wins

The sponsor closed in 24 days, fast enough to win the off-market deal. Interest-only at 11.52% means $77K/month carry, fully reserved out of loan proceeds. At Month 14, the asset hit 88% leased and 1.30x DSCR. PeerSense pre-underwrote the CMBS exit on day one, locked rate at month 15, refinanced into a 10-year non-recourse CMBS at 6.85%, saving $373K/year in interest and converting to fixed-rate permanent debt. Total bridge cost over 16 months: $1.62M. Annualized refi savings: $373K. Bridge breakeven against perm: 4.3 years. Sponsor walks away with $3.8M of stabilized equity on a $4.0M check-in.

Asset-Based Bridge Credit Box

Property-first underwriting. 50% maximum LTV. The asset and the exit are the deal, tax returns and FICO are not part of the conversation.

Maximum LTV

50% of "As-Is"

Property-only underwriting. We size to 50% of conservative as-is appraised value, leaving room for any market move.

Loan Range

$1M–$100M+

Flexible sizing based on property value and exit clarity. Larger asset-based facilities available on direct conversation.

Interest Rates

9–13%

Asset-based pricing. The collateral and exit drive the rate, not personal tax returns or W-2 income.

Term Length

6–36 Months

Short-term with extension options. Engineered around a defined exit: sale, refinance, or stabilization to permanent.

Close Time

14–30 Days

From clean docs to wire. Asset-based underwriting cuts the slowest parts of conventional credit committee out of the process.

Underwriting

Property-First

No tax returns. No personal income tests. No FICO floor for qualifying scenarios. The asset and the exit are the underwriting.

Collateral

CRE, Mixed-Use, Land

Stabilized and transitional commercial real estate, mixed-use, raw and entitled land, multi-property cross-collateralized portfolios.

Prepayment

Open After Month 6

No long lock-out. Exit when the takeout permanent debt or sale closes, not when the lender decides.

Special Situations

Distressed-OK

Foreclosure rescue, broken deals, partner buyouts under pressure, post-bankruptcy borrowers. The 50% LTV cushion is exactly what makes these deals fundable.

Foreign National Borrowers Accepted

Select bridge loan programs accept foreign national borrowers for U.S. commercial real estate acquisitions. International investors can access the same speed and flexibility as domestic borrowers.

Underwriting Matrix

Commercial Bridge Loan Parameters by Deal Type

Indicative bridge lending terms by exit strategy and asset profile. Fast-close execution (2–4 weeks) priced for speed and transitional risk. Bridge-to-permanent and bridge-to-agency executions price tighter when the takeout is pre-underwritten.

Property Type	Max LTV	Min DSCR	Term	Amortization	Rate Range	Recourse
Acquisition Bridge (stabilized, ≤24 mo)	70%	1.15x	12–24 mo + ext.	Interest-only	9.00–11.50%	Non-recourse
Value-Add / Repositioning	75% LTC	1.10x stabilized	18–36 mo + ext.	Interest-only	10.00–13.00%	Non-recourse
Bridge-to-Permanent (CMBS takeout)	70%	1.20x	18–24 mo	Interest-only	9.00–12.00%	Non-recourse
Bridge-to-Agency (multifamily)	75% LTC	1.15x stabilized	24–36 mo	Interest-only	9.00–10.75%	Non-recourse
Bridge-to-DSCR (investor portfolio)	70%	1.10x	12–24 mo	Interest-only	9.25–11.75%	Non-recourse
Construction Completion	70% LTC	1.10x stabilized	12–24 mo + ext.	Interest-only	10.50–13.50%	Non-recourse
Hospitality Bridge (PIP / reflag)	65%	1.20x	18–36 mo	Interest-only	9.75–13.00%	Non-recourse
Distressed / Special Situations	60% as-is	1.00x floor	12–18 mo	Interest-only	11.00–14.00%	Non-recourse
Rate-Cap-Expiration Rescue	65%	1.10x	12–24 mo	Interest-only	9.50–12.50%	Non-recourse

Acquisition Bridge (stabilized, ≤24 mo)

9.00–11.50% · 70% LTV

Max LTV: 70%
Min DSCR: 1.15x
Term: 12–24 mo + ext.
Amortization: Interest-only
Rate Range: 9.00–11.50%
Recourse: Non-recourse

Value-Add / Repositioning

10.00–13.00% · 75% LTC LTV

Max LTV: 75% LTC
Min DSCR: 1.10x stabilized
Term: 18–36 mo + ext.
Amortization: Interest-only
Rate Range: 10.00–13.00%
Recourse: Non-recourse

Bridge-to-Permanent (CMBS takeout)

9.00–12.00% · 70% LTV

Max LTV: 70%
Min DSCR: 1.20x
Term: 18–24 mo
Amortization: Interest-only
Rate Range: 9.00–12.00%
Recourse: Non-recourse

Bridge-to-Agency (multifamily)

9.00–10.75% · 75% LTC LTV

Max LTV: 75% LTC
Min DSCR: 1.15x stabilized
Term: 24–36 mo
Amortization: Interest-only
Rate Range: 9.00–10.75%
Recourse: Non-recourse

Bridge-to-DSCR (investor portfolio)

9.25–11.75% · 70% LTV

Max LTV: 70%
Min DSCR: 1.10x
Term: 12–24 mo
Amortization: Interest-only
Rate Range: 9.25–11.75%
Recourse: Non-recourse

Construction Completion

10.50–13.50% · 70% LTC LTV

Max LTV: 70% LTC
Min DSCR: 1.10x stabilized
Term: 12–24 mo + ext.
Amortization: Interest-only
Rate Range: 10.50–13.50%
Recourse: Non-recourse

Hospitality Bridge (PIP / reflag)

9.75–13.00% · 65% LTV

Max LTV: 65%
Min DSCR: 1.20x
Term: 18–36 mo
Amortization: Interest-only
Rate Range: 9.75–13.00%
Recourse: Non-recourse

Distressed / Special Situations

11.00–14.00% · 60% as-is LTV

Max LTV: 60% as-is
Min DSCR: 1.00x floor
Term: 12–18 mo
Amortization: Interest-only
Rate Range: 11.00–14.00%
Recourse: Non-recourse

Rate-Cap-Expiration Rescue

9.50–12.50% · 65% LTV

Max LTV: 65%
Min DSCR: 1.10x
Term: 12–24 mo
Amortization: Interest-only
Rate Range: 9.50–12.50%
Recourse: Non-recourse

Indicative ranges as of July 2026. Individual deal pricing depends on LTV, DSCR, property type, tenant credit, sponsor track record, and market spreads at the time of rate lock. Contact PeerSense for a deal-specific indication.

PROPERTY TYPES

Property Types Covered

Bridge financing is available across all major commercial real estate asset classes

Office

Retail

Industrial

Multifamily

Hospitality

Self-Storage

Land

Mixed-Use

Program Comparison

Bridge vs. CMBS vs. Hard Money vs. DSCR, Which Transitional Capital Fits Your Deal

Four different tools for four different problems. Commercial bridge debt is for transitional CRE that isn't stabilized enough for permanent financing but is too large for hard money. CMBS is the non-recourse permanent takeout once stabilized. Hard money closes fastest but prices highest. DSCR is investor-property permanent debt qualifying off rent, not sponsor income. Pick based on asset stabilization, speed, hold period, and exit certainty.

	Commercial Bridge Transitional CRE · 12–36 mo	CMBS Conduit Stabilized permanent · 5/7/10 yr	Hard Money / Private Speed-first · 6–24 mo	DSCR (Investor) 1-4 SFR / small multi · 30-yr
Best For	Value-add repositioning, acquisitions too fast for CMBS, bridge-to-agency takeouts, PIP-hotel refi, CMBS maturity-wall rescues	Stabilized income-producing CRE with 12+ months trailing NOI, long-term hold	Speed-critical acquisitions, fix-and-flip, owner-user, sub-performing or transitional assets banks won't touch	Scaled rental portfolios, STR operators, foreign nationals, sponsors with high personal DTI or complex tax returns
Rate Range	9.0% – 14.0%	6.25% – 9.00%	10.0% – 14.0% + 2–4 points	8.3% – 11.5% (investor SFR)
Term	12 – 36 months + extensions	5 / 7 / 10-year fixed	6 – 24 months, interest-only	30-year fixed fully amortized
Amortization	Interest-only	25–30-year amortization	Interest-only	Fully amortized
Max Leverage	70% LTV · 75% LTC (value-add)	60–75% LTV	65–75% of as-is · up to 90% LTC on rehab	75% LTV investor · 70% multi-family
Min DSCR	1.10 – 1.20x	1.25 – 1.40x	None (asset-based)	1.0 – 1.25x
Recourse	Non-recourse standard	Non-recourse (bad-boy carve-outs)	Often full or partial recourse	Non-recourse
Prepayment	Open after 6–12 months, small exit fee	Defeasance or yield maintenance	None	5-year declining (5/4/3/2/1)
Minimum Loan	$1M typical · $5M+ for best pricing	$2M, institutional CMBS needs $5M+	$100K – $500K+	$75K – $100K
Maximum Loan	$100M+	$500M+	$5M – $50M	$2M – $5M
Close Time	2 – 4 weeks	45 – 90 days	7 – 21 days (fastest)	21 – 30 days
Doc Requirements	Operating statements · rent roll · sponsor financials · business plan · take-out strategy	Full institutional underwriting: 3-yr ops · rent roll · tenant reviews · PCR · Phase I · appraisal · sponsor REO schedule	Minimal, asset value, sponsor track record, exit plan	None on income (simple docs) · property rent roll · lease abstract · DSCR analysis
Typical Exit	Refinance into CMBS, agency, bank, or DSCR once stabilized	Sale, refi, or hold to maturity	Refi into bridge, DSCR, or conventional · or sale	Sale, cash-out refi, or hold
PeerSense Fit	Yes, primary vertical. $5M–$100M+ bridge executions across hotel, multifamily, retail, industrial, office	Yes, primary vertical. CMBS advisory $5M–$500M+	Partner lender network includes private/hard-money capital for speed-critical spots	Yes, via institutional DSCR investor programs and direct originators

Best For

Commercial Bridge: Value-add repositioning, acquisitions too fast for CMBS, bridge-to-agency takeouts, PIP-hotel refi, CMBS maturity-wall rescues

Commercial BridgeTransitional CRE · 12–36 mo: Value-add repositioning, acquisitions too fast for CMBS, bridge-to-agency takeouts, PIP-hotel refi, CMBS maturity-wall rescues
CMBS ConduitStabilized permanent · 5/7/10 yr: Stabilized income-producing CRE with 12+ months trailing NOI, long-term hold
Hard Money / PrivateSpeed-first · 6–24 mo: Speed-critical acquisitions, fix-and-flip, owner-user, sub-performing or transitional assets banks won't touch
DSCR (Investor)1-4 SFR / small multi · 30-yr: Scaled rental portfolios, STR operators, foreign nationals, sponsors with high personal DTI or complex tax returns

Rate Range

Commercial Bridge: 9.0% – 14.0%

Commercial BridgeTransitional CRE · 12–36 mo: 9.0% – 14.0%
CMBS ConduitStabilized permanent · 5/7/10 yr: 6.25% – 9.00%
Hard Money / PrivateSpeed-first · 6–24 mo: 10.0% – 14.0% + 2–4 points
DSCR (Investor)1-4 SFR / small multi · 30-yr: 8.3% – 11.5% (investor SFR)

Term

Commercial Bridge: 12 – 36 months + extensions

Commercial BridgeTransitional CRE · 12–36 mo: 12 – 36 months + extensions
CMBS ConduitStabilized permanent · 5/7/10 yr: 5 / 7 / 10-year fixed
Hard Money / PrivateSpeed-first · 6–24 mo: 6 – 24 months, interest-only
DSCR (Investor)1-4 SFR / small multi · 30-yr: 30-year fixed fully amortized

Amortization

Commercial Bridge: Interest-only

Commercial BridgeTransitional CRE · 12–36 mo: Interest-only
CMBS ConduitStabilized permanent · 5/7/10 yr: 25–30-year amortization
Hard Money / PrivateSpeed-first · 6–24 mo: Interest-only
DSCR (Investor)1-4 SFR / small multi · 30-yr: Fully amortized

Max Leverage

Commercial Bridge: 70% LTV · 75% LTC (value-add)

Commercial BridgeTransitional CRE · 12–36 mo: 70% LTV · 75% LTC (value-add)
CMBS ConduitStabilized permanent · 5/7/10 yr: 60–75% LTV
Hard Money / PrivateSpeed-first · 6–24 mo: 65–75% of as-is · up to 90% LTC on rehab
DSCR (Investor)1-4 SFR / small multi · 30-yr: 75% LTV investor · 70% multi-family

Min DSCR

Commercial Bridge: 1.10 – 1.20x

Commercial BridgeTransitional CRE · 12–36 mo: 1.10 – 1.20x
CMBS ConduitStabilized permanent · 5/7/10 yr: 1.25 – 1.40x
Hard Money / PrivateSpeed-first · 6–24 mo: None (asset-based)
DSCR (Investor)1-4 SFR / small multi · 30-yr: 1.0 – 1.25x

Recourse

Commercial Bridge: Non-recourse standard

Commercial BridgeTransitional CRE · 12–36 mo: Non-recourse standard
CMBS ConduitStabilized permanent · 5/7/10 yr: Non-recourse (bad-boy carve-outs)
Hard Money / PrivateSpeed-first · 6–24 mo: Often full or partial recourse
DSCR (Investor)1-4 SFR / small multi · 30-yr: Non-recourse

Prepayment

Commercial Bridge: Open after 6–12 months, small exit fee

Commercial BridgeTransitional CRE · 12–36 mo: Open after 6–12 months, small exit fee
CMBS ConduitStabilized permanent · 5/7/10 yr: Defeasance or yield maintenance
Hard Money / PrivateSpeed-first · 6–24 mo: None
DSCR (Investor)1-4 SFR / small multi · 30-yr: 5-year declining (5/4/3/2/1)

Minimum Loan

Commercial Bridge: $1M typical · $5M+ for best pricing

Commercial BridgeTransitional CRE · 12–36 mo: $1M typical · $5M+ for best pricing
CMBS ConduitStabilized permanent · 5/7/10 yr: $2M, institutional CMBS needs $5M+
Hard Money / PrivateSpeed-first · 6–24 mo: $100K – $500K+
DSCR (Investor)1-4 SFR / small multi · 30-yr: $75K – $100K

Maximum Loan

Commercial Bridge: $100M+

Commercial BridgeTransitional CRE · 12–36 mo: $100M+
CMBS ConduitStabilized permanent · 5/7/10 yr: $500M+
Hard Money / PrivateSpeed-first · 6–24 mo: $5M – $50M
DSCR (Investor)1-4 SFR / small multi · 30-yr: $2M – $5M

Close Time

Commercial Bridge: 2 – 4 weeks

Commercial BridgeTransitional CRE · 12–36 mo: 2 – 4 weeks
CMBS ConduitStabilized permanent · 5/7/10 yr: 45 – 90 days
Hard Money / PrivateSpeed-first · 6–24 mo: 7 – 21 days (fastest)
DSCR (Investor)1-4 SFR / small multi · 30-yr: 21 – 30 days

Doc Requirements

Commercial Bridge: Operating statements · rent roll · sponsor financials · business plan · take-out strategy

Commercial BridgeTransitional CRE · 12–36 mo: Operating statements · rent roll · sponsor financials · business plan · take-out strategy
CMBS ConduitStabilized permanent · 5/7/10 yr: Full institutional underwriting: 3-yr ops · rent roll · tenant reviews · PCR · Phase I · appraisal · sponsor REO schedule
Hard Money / PrivateSpeed-first · 6–24 mo: Minimal, asset value, sponsor track record, exit plan
DSCR (Investor)1-4 SFR / small multi · 30-yr: None on income (simple docs) · property rent roll · lease abstract · DSCR analysis

Typical Exit

Commercial Bridge: Refinance into CMBS, agency, bank, or DSCR once stabilized

Commercial BridgeTransitional CRE · 12–36 mo: Refinance into CMBS, agency, bank, or DSCR once stabilized
CMBS ConduitStabilized permanent · 5/7/10 yr: Sale, refi, or hold to maturity
Hard Money / PrivateSpeed-first · 6–24 mo: Refi into bridge, DSCR, or conventional · or sale
DSCR (Investor)1-4 SFR / small multi · 30-yr: Sale, cash-out refi, or hold

PeerSense Fit

Commercial Bridge: Yes, primary vertical. $5M–$100M+ bridge executions across hotel, multifamily, retail, industrial, office

Commercial BridgeTransitional CRE · 12–36 mo: Yes, primary vertical. $5M–$100M+ bridge executions across hotel, multifamily, retail, industrial, office
CMBS ConduitStabilized permanent · 5/7/10 yr: Yes, primary vertical. CMBS advisory $5M–$500M+
Hard Money / PrivateSpeed-first · 6–24 mo: Partner lender network includes private/hard-money capital for speed-critical spots
DSCR (Investor)1-4 SFR / small multi · 30-yr: Yes, via institutional DSCR investor programs and direct originators

Program criteria current as of July 2026.

Rate ranges reflect July 2026 market indications. Actual pricing depends on sponsor track record, property type, stabilization status, LTV/LTC, loan size, and exit certainty. For a specific deal indication contact PeerSense.

Bridge to What?

Bridge loans are designed with an exit strategy in mind. Here are the most common transition scenarios:

Bridge to Permanent CMBS

Most common exit: refinance into 10-year fixed-rate non-recourse CMBS once stabilized. We coordinate the bridge AND the permanent takeout in one engagement.

Learn More

Bridge to SBA 504 After Stabilization

For owner-occupied commercial real estate, bridge to acquisition then refinance into SBA 504 for long-term fixed rates and minimal equity requirements.

Learn More

CMBS Balloon Maturity Refinance

Existing CMBS loan maturing in 12-24 months? Use a bridge to extend the runway, then refinance into new permanent debt at improved leverage.

Learn More

Hotel Bridge to PIP Completion

Acquire and renovate hotels with bridge financing, complete the brand-mandated PIP, then exit into hotel CMBS at the new stabilized basis.

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Bridge to Sale

Complete value-add improvements, stabilize occupancy, then sell at a higher valuation. Bridge financing funds the transition period.

Run Your Numbers, CMBS Deal Sizer

See your max loan, indicative rate, monthly debt service, and DSCR before talking to a lender. 6 inputs, 30 seconds, no signup.

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Multiple Exit Paths

The best bridge loans are structured with flexibility in mind. PeerSense works with lenders who understand that exit strategies can evolve as market conditions change. No prepayment penalty options ensure you're not locked in if your permanent financing comes through early.

Need more than senior debt can cover? Explore Mezzanine Financing

Quick Answer

How does bridge-to-perm structuring work for 200+ unit multifamily portfolios?

At 200+ unit portfolio scale, bridge-to-perm is typically structured as a single blanket bridge loan, cross-collateralized across every property in the portfolio, sized at the same 50 to 75% LTV bands used on single-asset bridge deals, with release provisions that let the sponsor pay down and release individual properties as they stabilize, ahead of a portfolio-wide takeout into agency or CMBS permanent debt.

Blanket structure: one bridge note secured by all properties in the portfolio, cross-collateralized, rather than 200+ separate single-asset loans. This simplifies closing and gives the lender a single deal to underwrite instead of hundreds.
Release provisions: negotiated release prices per property, typically at a premium to its pro-rata share of the loan, so the sponsor can sell or refinance one property individually as it stabilizes without disturbing the rest of the portfolio loan.
Leverage: 50% LTV on the pure asset-based lane, or 60 to 75% LTV on full-doc bridge, the same bands used on single-asset bridge deals.
Rate: 9 to 14%, priced as SOFR plus a spread of 450 to 800 basis points, consistent with single-asset bridge pricing. Institutional-scale portfolios at this size generally price toward the tighter end of the range given the depth of the lender pool.
Exit: a portfolio-wide agency (Fannie/Freddie) or CMBS takeout once the full portfolio clears stabilized DSCR and occupancy, or a phased takeout as sub-pools of the portfolio stabilize on different timelines.

PeerSense pre-underwrites the portfolio takeout structure, whether a single blanket agency execution or a phased release schedule, before the bridge closes, so cross-collateralization terms and release pricing are set at origination rather than negotiated under pressure near maturity.

How Bridge Lenders Actually Price

Bridge Loan Pricing & Leverage Interpretation Tables

Bridge pricing varies 200–400 bps for the same asset based on sponsor experience, property risk profile, and exit visibility. Use these tables to anchor your expectations before quoting.

Bridge Rate Range by Sponsor Experience Tier (July 2026)

Sponsor Tier	Profile	Indicative Rate	Typical Origination	Recourse
Tier 1, Institutional	5+ exits, $50M+ AUM, prior bridge with same lender	SOFR + 470–600 (9.02–10.32%)	0.75–1.00%	Non-recourse
Tier 2, Experienced	3+ comparable exits, balance-sheet liquidity 10% of loan	SOFR + 600–725 (10.32–11.57%)	1.00–1.50%	Non-recourse w/ carve-outs
Tier 3, Emerging	1–2 prior CRE deals, partner with experienced GP, KP guarantor	SOFR + 725–850 (11.57–12.82%)	1.50–2.00%	Partial recourse / completion guaranty
Tier 4, First-time / Distressed	No prior CRE bridge, or distressed/special situation	SOFR + 850–970 (12.82–14.02%)	2.00–3.00%	Often full recourse

SOFR base reference: 4.32% as of July 2026 (Federal Reserve H.15). Spread compression of 25–75 bps possible at lower LTV (≤60%) or with prepaid takeout commitment.

Max Bridge LTV / LTC by Property Risk Profile

Property Risk	Examples	Max LTV (As-Is)	Max LTC (Total Cost)	Min DSCR Stabilized
Low	Class A multifamily lease-up, industrial last-mile, self-storage stabilization	75%	80%	1.15x
Moderate	Class B office reposition, anchored retail re-tenanting, mixed-use	70%	75%	1.20x
Elevated	Hotel PIP / flag conversion, suburban office, unanchored retail	65%	70%	1.25x
High	Office-to-residential conversion, ground-up completion, special purpose	60%	65%	1.30x

Bridge Exit Pathway Matrix, When Each Takeout Wins

Exit	Best When	Expected Take-Out Rate	Time to Exit Eligibility	Pre-Underwrite With Bridge?
CMBS Conduit	Stabilized $5M+, 10-yr hold, fixed-rate non-recourse goal	6.25–7.50%	12 mo trailing NOI	Yes, lock rate at Mo 9
Agency (Fannie / Freddie)	Stabilized multifamily 90%+ occupied, 1.25x DSCR	5.85–6.85%	90-day trailing	Yes, bridge-to-agency programs
Bank / Life Co Permanent	Class A institutional asset, sponsor relationship bank	6.00–7.00%	Stabilized 6+ mo	Conditional commitment possible
DSCR / Investor Permanent	Investor portfolio, 1–4 unit, small multifamily	7.50–8.75%	3-mo rent roll history	Sometimes, DSCR portfolio takeout
SBA 504 (Owner-Occupied)	Owner-user 51%+ occupied, hotel / industrial / mixed-use	~6.00% blended	After CO + 51% occupancy	Yes. Lender coordinates
Sale	Value-add hold; merchant build / merchant lease-up plan	Cap-rate dependent	Stabilized + market window	No, broker engagement at Mo 12

Rate ranges are July 2026 indications. PeerSense pre-underwrites the takeout simultaneously with the bridge, so you sign the bridge with permanent debt economics already modeled.

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Bridge Loan Pros and Cons

Pros

Fast closing (14–30 days)
Asset-focused underwriting (no tax returns, no FICO floor on the 50% LTV lane)
Flexible prepayment (open after 6–12 months)
Distressed, value-add, and partner-buyout scenarios fundable at 50% LTV
Interest-only payments preserve cash flow

Cons

Higher rates (9–14%)
Short term (12–36 months), must have exit plan
Often full recourse
Extension fees if you don't exit on time
Origination fees typically 1–3%

Frequently Asked Questions

A commercial bridge loan is short-term financing (typically 6–36 months) designed to "bridge" the gap between an immediate capital need and permanent financing. Bridge loans close in 2–4 weeks, making them ideal for time-sensitive acquisitions, construction completion, or property transitions that conventional lenders can't accommodate on your timeline.

Estimate Your Bridge Loan Monthly Payment (Interest-Only)

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Loan Amount

Interest Rate (% all-in)

Term (years)

Monthly Payment

$231,880

Principal + Interest

Total Paid

$5,565,125

Total Interest

$565,125

Full Deal Sizer →Get Real Quote from a Lender

Related Financing Options

CMBS Permanent Financing

Exit your bridge loan into non-recourse, fixed-rate CMBS conduit financing.

Hotel Financing

Bridge, CMBS, and SBA 504 financing for hotel acquisitions and refinances.

Private Credit

Non-bank lending for deals that need flexible terms and creative structures.

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Get a complimentary assessment of your deal's financing options.

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Enter your NOI and property value. See max CMBS takeout amount and rate, so you know the exit before you sign the bridge.

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Bridge / Hotel Refi: Response within 24–48 hours. No obligation.

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Deals We Structure

Representative deal profiles showing our typical financing structures and terms.

CMBS / Hotel Refi

$12M Hilton-Flag Hotel, Charlotte, NC

6.75% fixed | 65% LTV | 52-day close

Bridge Loan

$8M Value-Add Multifamily, Tampa, FL

SOFR +395 | 75% LTC | 14-day close

2.1M loans analyzed Curated capital network Response in 4 hours Fee realized at closing

Need to Close Fast? Get Bridge Financing in 2–4 Weeks.

$1M+ loan size. 25%+ equity. One call gets you a direct introduction to the right bridge lender for your timeline and property type. No mass submissions. We match you with the lender that fits.

Call (317) 452-6990

Curated capital network · Closings as fast as 14 days · Fee at closing

PeerSense bridge loan advisory is based in Westfield, Indiana and serves borrowers nationwide. We structure bridge loans for commercial properties in Indiana, the Midwest, and all 50 states. Whether you need a bridge loan in Indianapolis, Chicago, Columbus, Louisville, or anywhere in the U.S., our capital source network closes deals in 2-4 weeks regardless of location.

Disclaimer: PeerSense is not a lender, bank, or financial institution. We are a capital advisory firm that connects borrowers with potential lending partners. All rates, terms, market data, and estimates shown on this page are approximate and subject to change based on market conditions, borrower qualifications, property specifics, and lender discretion. Nothing on this website constitutes financial, legal, or investment advice. Individual results vary. All information should be independently verified. Past performance and market data do not guarantee future results. Consult with qualified legal and financial professionals before making any financing decisions.

Capital Markets Advisory · Representative Deals

Representative Bridge Closes

Anonymized case studies of value-add bridge, recap mezz, and pre-cleared CMBS-takeout structures PeerSense has placed.

Construction crew walking an active job site

$8,000,000

Class B office, value-add reposition (lease-up + capex)

Bridge

$8M Bridge, Class B Office Value-Add Reposition

Funded 18-mo reposition bridge at SOFR+450 (9.50%) with pre-cleared CMBS exit; 28-day close.

Rate: SOFR + 450
LTC: 70%
Term: 18 mo
Sponsor Equity: 30%

Sponsor identified a sub-stabilized Class B office at a price that penciled only with a fast-moving bridge and a clean exit thesis. PeerSense underwrote the business plan in parallel with two paths, institutional bridge debt fund and a non-bank balance-sheet lender, and selected the bridge with the cleanest extension language. Critically, we pre-cleared a CMBS conduit takeout against pro-forma stabilized NOI before the bridge closed, so the exit lender's appetite was confirmed in writing. Bridge funded interest-only at SOFR+450 (~9.50%), 70% LTC, with carry reserve sized to cover the 18-month lease-up runway. Closed in 28 days.

Structure

18-mo bridge, SOFR + 450 bps (≈ 9.50%), interest-only, 70% LTC, sponsor 30% equity; pre-cleared CMBS takeout at stabilization

Closed in 28 daysTier-2 MSA2025–2026

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Disclaimer: Case studies are anonymized representations of deal types PeerSense routinely structures. All borrower names, specific property addresses, and identifying details have been altered or omitted to protect client confidentiality. Loan amounts, rates, LTVs, and structural details reflect typical institutional terms PeerSense has placed; individual deals vary with credit, sponsor, and market conditions.

Deal Archetypes

Representative Deal Types We Structure

Archetypes our institutional capital advisory desk underwrites, drawn from published market ranges across CMBS, bridge, SBA, mezzanine, and private credit.

$250K–2M

Low-Doc Owner-Occupied Commercial

StructureAsset-based, no income verification

Leverage50% LTV (asset-based)

Term30-yr fixed available

Indicative rate8–10%

ProfileOwner-user small commercial, equity-rich, self-employed or complex income, time-sensitive · Q2 2026

Structured to qualify on the property and the sponsor's substantial equity with a streamlined file, fast, low-friction close for the well-capitalized owner-user

$8–25M

Bridge, Multifamily Value-Add

StructureFloating-rate bridge, interest-only

Leverage75–80% LTC

Term24–36 months + extension options

Indicative rateSOFR + 470–620 bps (≈ 9.0–10.5%)

ProfileClass B/C garden multifamily, sub-90% occupied · Q1 2026

Reposition + refi-to-agency exit; carry reserve sized to projected NOI lift

$25–150M

Data Center Construction Senior

StructureConstruction-to-perm senior debt

Leverage60–70% LTC

Term24–36 mo construction + 5–7 yr mini-perm

Indicative rateSOFR + 275–425 bps

ProfileHyperscale or colocation, signed pre-lease required · Q1 2026

Capital stack engineered around investment-grade tenant pre-lease and PPA

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Indicative of deal types our institutional capital advisory desk structures. Not a representation of completed transactions. Specific deal data available under NDA on request.

Sources & References

Commercial Bridge Lending Sources & References

Federal Reserve, Selected Interest Rates (H.15): Daily SOFR and Treasury benchmarks used to price bridge debt (SOFR + spread).
Federal Reserve Bank of New York, SOFR Reference Rates: Official daily SOFR fixings, the floating-rate base for nearly all 2026 bridge financings.
FRED, St. Louis Fed Commercial Real Estate Loans: Weekly aggregate commercial real estate loan balances at U.S. banks.
Mortgage Bankers Association, Quarterly CRE Origination Survey: Quarterly bridge / transitional CRE origination volumes by lender type.
FDIC, Quarterly Banking Profile: Banking-sector CRE loan delinquency and origination context, bridge market temperature.

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