Cold Storage Bridge LoansTakeout named first · 9.5% to 12.5% · Public floor $10 million and up
Talk to PeerSense. The capital source sets the terms. This covers refrigerated and freezer warehouse acquisitions, dry to cold conversions, spec cold lease up, and recapitalizations across food distribution corridors. Cold storage is specification underwriting: refrigeration plant, temperature zones, power, and tenant credit drive the file, and we position each so the specialized improvements read as premium industrial rather than single use risk.
Refrigerated and freezer warehouses · dry to cold conversion · food corridor logistics · 3PL and food producer tenancy · construction take out and recapitalization.
Last updated: ·By Ed Freeman, Capital Advisor. PeerSense
Eligible collateral is commercial & investment real estate only. The following do not qualify under any PeerSense program, regardless of equity or credit: owner occupied primary residences, second homes, and single family homes you live in (or plan to vacate at closing); and properties in active foreclosure. Pre foreclosure is considered case by case. If it's a home you live in, a residential mortgage broker is the right starting point.
What are typical cold storage bridge loan rates in 2026?
Talk to PeerSense. The capital source sets the terms.5% to 12.5% interest only in July 2026, 12 to 36 month terms, 60% to 70% of as is value on leased facilities and up to 70% of cost on conversions with draw funded capex. Pricing keys on the spec sheet: temperature zones, refrigeration plant age and redundancy, power. It also keys on tenant credit: food producers, grocery distributors, and cold 3PLs on long leases price at the tight end. Stabilized facilities exit into CMBS, SASB at larger sizes, or life company permanent debt. This is the same universe that treats modern leased cold storage as premium industrial.
Published by PeerSense Capital Advisory · Written by Ed Freeman, Founder. Updated May 2026.
Cold Storage Bridge Loan Underwriting Matrix: Terms by Deal Type
Bridge lenders underwrite cold storage deals very differently based on the transition being bridged: acquisition vs. refinance vs. lease-up vs. value-add vs. cash-out. Pick your deal type below for typical LTV, DSCR, term, and rate.
| Property Type | Max LTV | Min DSCR | Term | Amortization | Rate Range | Recourse |
|---|---|---|---|---|---|---|
| Leased Modern Facility (Credit Food Tenant) | 65 to 70% | 1.25x trailing | 12 to 24 mo | Interest Only | 9.5% to 10.5% | Non recourse ($15M+) |
| Cold 3PL Multi Tenant Acquisition | 65 to 70% | 1.25x trailing | 18 to 36 mo | Interest Only | 9.75% to 10.75% | Non recourse w/ carve outs |
| Dry to Cold Conversion | 60 to 70% LTC | 1.20x stabilized | 24 to 36 mo | Interest Only | 10.5% to 12% | Completion guarantee |
| Spec Cold Lease Up (Construction Take Out) | 60 to 70% LTC | 1.15x stabilized | 24 to 36 mo | Interest Only | 10.5% to 12.5% | Leasing milestone triggers |
| Refrigeration Plant Modernization | 60 to 68% LTC | 1.25x stabilized | 18 to 30 mo | Interest Only | 10% to 11.5% | Completion guarantee |
| Owner User Food Business (SBA 504 Exit) | 65 to 70% | 1.20x trailing | 12 to 24 mo | Interest Only | 10% to 11.5% | Full recourse (SBA exit) |
| Sale Leaseback Recapitalization | 60 to 68% | 1.30x in-place | 12 to 24 mo | Interest Only | 9.75% to 11% | Non recourse |
| Aging Facility w/ Capex Plan | 55 to 65% | 1.30x stabilized | 18 to 36 mo | Interest Only | 11% to 12.5% | Partial / full |
Leased Modern Facility (Credit Food Tenant)9.5% to 10.5% · 65 to 70% LTV
- Max LTV
- 65 to 70%
- Min DSCR
- 1.25x trailing
- Term
- 12 to 24 mo
- Amortization
- Interest Only
- Rate Range
- 9.5% to 10.5%
- Recourse
- Non recourse ($15M+)
Cold 3PL Multi Tenant Acquisition9.75% to 10.75% · 65 to 70% LTV
- Max LTV
- 65 to 70%
- Min DSCR
- 1.25x trailing
- Term
- 18 to 36 mo
- Amortization
- Interest Only
- Rate Range
- 9.75% to 10.75%
- Recourse
- Non recourse w/ carve outs
Dry to Cold Conversion10.5% to 12% · 60 to 70% LTC LTV
- Max LTV
- 60 to 70% LTC
- Min DSCR
- 1.20x stabilized
- Term
- 24 to 36 mo
- Amortization
- Interest Only
- Rate Range
- 10.5% to 12%
- Recourse
- Completion guarantee
Spec Cold Lease Up (Construction Take Out)10.5% to 12.5% · 60 to 70% LTC LTV
- Max LTV
- 60 to 70% LTC
- Min DSCR
- 1.15x stabilized
- Term
- 24 to 36 mo
- Amortization
- Interest Only
- Rate Range
- 10.5% to 12.5%
- Recourse
- Leasing milestone triggers
Refrigeration Plant Modernization10% to 11.5% · 60 to 68% LTC LTV
- Max LTV
- 60 to 68% LTC
- Min DSCR
- 1.25x stabilized
- Term
- 18 to 30 mo
- Amortization
- Interest Only
- Rate Range
- 10% to 11.5%
- Recourse
- Completion guarantee
Owner User Food Business (SBA 504 Exit)10% to 11.5% · 65 to 70% LTV
- Max LTV
- 65 to 70%
- Min DSCR
- 1.20x trailing
- Term
- 12 to 24 mo
- Amortization
- Interest Only
- Rate Range
- 10% to 11.5%
- Recourse
- Full recourse (SBA exit)
Sale Leaseback Recapitalization9.75% to 11% · 60 to 68% LTV
- Max LTV
- 60 to 68%
- Min DSCR
- 1.30x in-place
- Term
- 12 to 24 mo
- Amortization
- Interest Only
- Rate Range
- 9.75% to 11%
- Recourse
- Non recourse
Aging Facility w/ Capex Plan11% to 12.5% · 55 to 65% LTV
- Max LTV
- 55 to 65%
- Min DSCR
- 1.30x stabilized
- Term
- 18 to 36 mo
- Amortization
- Interest Only
- Rate Range
- 11% to 12.5%
- Recourse
- Partial / full
Indicative only, as of May 2026. Not a quote, commitment or offer of credit. Final pricing, leverage and terms are determined by the lender at underwriting, after full transaction materials are reviewed. PeerSense sources the file. The lender sets pricing. What these terms mean.
Indicative ranges as of May 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.
Indicative only, as of October 1, 2026. Not a quote, commitment or offer of credit. Final pricing, leverage and terms are determined by the lender at underwriting, after full transaction materials are reviewed. PeerSense sources the file. The lender sets pricing. What these terms mean.
Why Cold Storage Is Specification Underwriting
A cold storage facility is an industrial building wrapped around a refrigeration business. The improvements include insulated envelope, multi zone refrigeration plant, freezer slabs, and redundant power. They cost a large multiple of dry warehouse construction and cannot be cheaply replicated, which is why modern facilities in food distribution corridors command premium rents and why tenants, once racked and certified in a building, rarely leave. The demand base is food logistics: grocery distribution, protein and produce processing, and the cold chain behind e commerce grocery. It is consumption driven, not cycle driven. Lenders finance that durability when the file proves the specification. PeerSense builds the spec and tenancy evidence pack that lets a credit committee treat cold storage as premium industrial rather than single use risk.
The Spec Sheet Is the Collateral
Temperature zones and their square footage, clear height, refrigeration plant age and redundancy, ammonia compliance posture, power capacity and backup generation, dock count and configuration, and food safety certification history. This is what the lender is actually buying. A complete engineering and compliance package at submission is worth real basis points. A vague one converts into reserves and holdbacks.
Conversion Economics Cut Both Ways
Dry to cold conversion capex is severe. Envelope, plant, slab, and power can multiply the basis. That barrier is precisely why delivered cold space rents at a premium and holds tenancy. Bridge lenders underwrite the contractor's cold specific track record and the draw schedule hard, because a stalled refrigeration installation is far costlier to resolve than stalled dry TI work.
Tenant Credit Substitutes for Alternative Use
Because alternative use value is narrower than dry warehouse, the income stream carries the exit. Credit food producers, national grocery distributors, and established cold 3PLs on long leases give the facility bond like character that CMBS, SASB, and institutional portfolio lenders will finance aggressively. We position lease term, renewal economics, and tenant operational commitment (racking, certifications, USDA/FDA inspection history) as core credit exhibits.
Food Corridor Location Is the Demand Moat
Cold storage clusters where food moves: port adjacent import corridors, protein belt processing regions, and grocery distribution rings around major metros. In corridor facilities benefit from structural scarcity. Entitlement, power, and capex barriers throttle new supply. Out of corridor facilities are financeable but underwrite to the single tenant's business rather than to a market.
Cold Storage Bridge Deal Types We Structure
Leased Facility Acquisition
You're acquiring a modern multi zone facility leased to a grocery distributor or cold 3PL, and the seller's timeline beats any permanent lender's process. Bridge closes in 30 to 60 days at 65 to 70% LTV; you season the asset and refinance into CMBS, SASB, or institutional portfolio permanent debt.
Dry to Cold Conversion
You control a well located dry warehouse in a food distribution corridor with tenant demand for cold space. Bridge funds acquisition plus conversion capex: envelope, refrigeration plant, freezer slab, and power. It does so through draws, and exits at the stabilized cold rent roll.
Spec Cold Construction Take Out
Your newly delivered spec cold facility needs lease up time the construction lender won't give. Bridge takes out construction debt, funds carry and TI/racking packages through lease up, and refinances into permanent debt once tenancy stabilizes.
Plant Modernization Recapitalization
Your facility's refrigeration plant is aging. Efficiency, redundancy, or compliance needs investment. Bridge recapitalizes the asset and funds the modernization program, protecting the tenancy and repositioning the facility for a tighter permanent debt exit.
Owner User Food Business Purchase
Your food production or distribution company is buying its own cold facility. Bridge closes fast; the company then refinances into SBA 504 long amortization debt (majority owner occupancy required) or conventional owner user permanent financing. We pre screen the 504 path at bridge close.
Cold Storage Bridge Loans: Frequently Asked Questions
What are typical cold storage bridge loan rates in 2026?+
Cold storage bridge loans price roughly 9.5% to 12.5% interest only in July 2026, indexed to Term SOFR plus a spread set by tenancy, facility specification, and business plan. Fully leased modern facilities with credit food tenants price at the tight end; dry to cold conversions and spec lease up plans price at the wide end.
What LTV can I get on cold storage bridge debt?+
Typically 60% to 70% of as is value on leased facilities and 60% to 70% of cost on conversion or lease up plans with draw funded capex. Because the improvements are specialized, lenders weight tenant credit, lease term, and food corridor location more heavily than in dry industrial.
How do lenders underwrite the facility specification?+
Temperature zones, clear height and racking, refrigeration system age and redundancy, ammonia vs Freon plant and compliance posture, power capacity and backup, dock configuration, and food safety certification history. A modern multi zone facility with redundant refrigeration underwrites like core logistics.
Can bridge fund a dry to cold conversion?+
Yes. Bridge funds the conversion capex (insulated envelope, refrigeration plant, freezer slab, upgraded power, food grade finishes) through draws. Conversion cost is a large multiple of dry fit out, which is why delivered cold space commands premium rents. This is why contractor experience and the draw schedule get heavy scrutiny.
Why is tenant credit so important?+
Alternative use value is narrower than dry warehouse, so the exit depends on the income stream. Food producers, grocery distributors, and cold 3PLs on long leases give the facility bond like income character that CMBS, SASB, and life company lenders finance aggressively.
What is the standard exit for a cold storage bridge loan?+
CMBS conduit debt, SASB executions at larger sizes, or life company permanent debt. This is the lender universe that treats modern leased cold storage as premium industrial. Owner occupied food business facilities can exit into SBA 504 at smaller sizes.
Does ammonia refrigeration affect financing?+
Ammonia systems are the industrial standard at scale but bring process safety obligations (EPA RMP, OSHA PSM). Lenders diligence the compliance record, incident history, and maintenance regime. A clean documented program is fully financeable; a neglected one becomes a pricing and reserve conversation.
Is cold storage bridge non recourse?+
Non recourse with bad boy carve outs is available at roughly $15M+ for experienced sponsors on leased facilities. Conversion and spec lease up plans carry completion guarantees and leasing milestone triggers that burn off at stabilization.
Deals We Structure
Originators, factoring, CMBS, and bridge. Sizes and structures only. No counterparties named. PeerSense sources capital through a curated network of commercial lenders and capital sources.
Focus is 100 million a month. The desk will look at 10 million a month.
Tape first. 10 million is not the focus.
$20 million a month B2B invoices
Advance on the account debtor. Annual receivables is not facility size.
$10 million and up flagged hotel, CMBS refi
Cash in about 35 percent. Named takeout.
$10 million and up value add multifamily bridge
Named takeout first. Close follows the book.
Hyperscaler lease. Owner keeps the facility.
Up to 89 percent of contracted lease value. Do not name the source.
Revolving line against eligible originator receivables
Advance rates are set facility by facility by asset class. Often paired with a flow takeout.
Indicative only, as of October 1, 2026. Not a quote, commitment or offer of credit. Final pricing, leverage and terms are determined by the lender at underwriting, after full transaction materials are reviewed. PeerSense sources the file. The lender sets pricing. What these terms mean.
Talk to PeerSense
Property address, purchase price (or payoff for refi), current NOI or pro forma stabilized NOI, requested loan amount, and exit strategy. The desk will reach out.
Cold Storage Bridge Loan: The desk will reach out. No obligation.
Ready to place your Cold Storage bridge when the takeout is named?
Send us the property address, purchase price (or payoff), stabilized NOI, and exit strategy. We'll return a rate indication and lender shortlist. Public floor is $10 million and up. Cash in about 35 percent.
Fee at closing only · Complimentary initial consultation
Published by PeerSense Capital Advisory · Written by Ed Freeman, Founder. Updated May 2026.
Disclaimer: Cold Storage bridge loan rates, terms, and availability are subject to change based on property condition, sponsor qualifications, exit strategy, market conditions, and lender specific credit policies. Rate ranges quoted reflect approximate May 2026 private credit and debt fund pricing and may not reflect current market conditions at the time of reading. PeerSense sources capital through a curated network of commercial lenders and capital sources. All financing is provided by third party lenders subject to their own underwriting criteria and approval processes. Borrowers should consult qualified financial and legal professionals before making any financing decisions.