How is the buyout price determined?

Typically through a professional MAI appraisal, an agreed-upon valuation formula in your operating agreement, or negotiation between partners. The bridge lender will order their own appraisal regardless and lend against the lower of purchase price or appraised value.

What if my partner and I disagree on value?

Most operating agreements include dispute resolution provisions (baseball arbitration, dual appraisals, mediator). If not, the bridge lender's independent appraisal can serve as a neutral third-party valuation. Resolve the valuation dispute before closing the bridge.

How do I refinance after the buyout?

Once you have 100% ownership and clean title, refinance into CMBS, bank, or life company permanent debt at 5-8%. The cleaner ownership structure actually makes permanent financing easier, lenders prefer single-entity borrowers over complex partnerships.

Can the bridge loan cover legal and closing costs?

Yes. Most bridge lenders will include reasonable legal, appraisal, and closing costs in the loan amount, provided total LTV stays within their guidelines (65-75%). Budget $25K-$50K for legal and closing costs on a partner buyout transaction.

Published: March 31, 2026·Last updated: May 16, 2026·By Ed Freeman, Capital Advisor. PeerSense

What is the best financing for commercial real estate at 65-75% LTV?

Partner buyout bridge loans provide the capital to purchase your partner's equity stake in a commercial property within 2-4 weeks. At 65-75% LTV based on current appraised value, bridge rates range from 9-13% for 12-24 month terms. Once you have 100% ownership, refinance into permanent CMBS or bank debt at 6-8%, converting a forced partnership dissolution into a clean capital structure.

Published by PeerSense Capital Advisory · Written by Ed Freeman, Founder

Prime: 6.75% 10-Yr Treasury: 4.25% Est. Bridge Loan Range: 9% - 13%as of Mar 19, 2026

Commercial Real Estate

Buy Out Your Partner, Bridge Capital in 2-4 Weeks

Bridge financing for commercial real estate partner buyouts. $1M to $50M+, close in 2-4 weeks. Buy out your partner, consolidate ownership, refinance into permanent debt.

Minimum 30-35% equity required. Property co-owners needing to buy out a partner due to dispute, retirement, death, divorce, or strategic consolidation.

Discuss Your Commercial Real Estate Deal Call (317) 452-6990

KEY TERMS

Deal Parameters at a Glance

LTV Target

65-75%

Est. Rate Range

9% - 13%

Term

12-24 months

Recourse

Full recourse

DSCR

1.0x minimum

Closing Speed

14-28 days

Min Loan Size

$1M

Loan Products

Bridge Loan

Indicative only, as of August 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 does not lend and does not set pricing. What these terms mean.

FIT ASSESSMENT

When Is This the Right Fit?

Use this when a partner wants out (or must be removed) and you need capital fast to buy their stake. Common triggers: partnership disputes, divorce, death of a partner, retirement, or one partner wanting liquidity. Speed matters because prolonged disputes can damage property operations and tenant relationships. The bridge buys time and stability, refinance into permanent debt once ownership is clean.

Want the full program overview, current rate sheet, and underwriting matrix? See the Bridge Loans guide →

ADVANTAGES

Key Benefits

Resolve partnership disputes or forced sales quickly

Close in 2-4 weeks, before litigation escalates or the partner forces a sale

Cash out departing partner at fair market value with professional appraisal

Consolidate 100% ownership for cleaner permanent refinancing

Interest-only payments during the bridge period

ALTERNATIVES

Strategic Alternatives

Private Credit

If you need longer-term non-bank financing for the buyout

Learn more

CMBS Permanent Financing

If the property is stabilized and you have 60+ days

Learn more

Mezzanine Financing

If you need additional leverage above a senior bridge loan

Learn more

Frequently Asked Questions

Yes. Bridge lenders routinely fund partner buyouts on commercial real estate. The loan is secured by the property, and proceeds are used to purchase the departing partner's equity stake. The lender needs a current appraisal, rent roll, and the buyout agreement.

See Related Rates by Program

PeerSense covers the full commercial capital stack. Indicative levels that lenders in our network have been pricing across these programs, as of August 1, 2026.

SBA 7(a) & 504

5.50–11.75%

Up to $5M acquisition / real estate / equipment, 10% down

See current rates

CMBS Conduit

5.60–7.10%

10-yr non-recourse fixed, $5M–$500M+, fully assumable

See current rates

DSCR Investor

5.95–8.50%

30-yr fixed rental, qualifies on property cash flow

See current rates

Equipment Financing

5.50–12.00%

Loan, lease, SBA 504, vendor, captive. Section 179 eligible

See current rates

Hotel Financing

5.85–11.75%

CMBS + SBA 504 + bridge + PIP across all flags

See current rates

Private Credit

7.80–18.00%

Non-bank flexibility, unitranche, recap, transitional

See current rates

Invoice Factoring + ABL

0.5–3.5% / 30d

B2B receivables, trucking / staffing / construction / govt

See current rates

No-Doc CRE

7.50–11.50%

Limited-doc commercial, asset-based underwriting

See current rates

Foreign National

7.50–11.00%

Non-US borrower CRE + bridge, no SSN required

See current rates

Connect with PeerSense, Direct Capital Advisory

PeerSense pre-underwrites every deal before presenting it to our institutional capital sources. With a curated network of lender relationships and live market rate intelligence, we match your commercial real estate deal with the right capital source, right now.

Scan Your Deal (30 sec)Tell Us About Your Deal Call (317) 452-6990

Fee at closing only · Complimentary initial consultation

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

Disclaimer: The information on this page is provided for educational purposes only and does not constitute financial, legal, or investment advice. Rates, terms, and availability are subject to change based on market conditions, property characteristics, and borrower qualifications. The rate ranges cited reflect approximate market pricing as of March 2026 and may not reflect current conditions at the time of reading. PeerSense is a capital advisory firm, not a lender. We do not originate, fund, or service loans. All financing is provided by third-party lenders subject to their own underwriting criteria and approval processes. Borrowers should consult with qualified financial and legal professionals before making any financing decisions.