How does private credit differ from a traditional bridge loan?

Private credit funds offer larger loan sizes ($10 million and up), more creative structures, and institutional quality underwriting. Traditional bridge lenders (hard money) are typically smaller, more expensive, and less flexible. Private credit fills the middle market between hard money and bank/CMBS lending.

What exit strategies do private credit lenders require?

Lenders require a clearly defined exit: either refinance into permanent CMBS or conventional debt upon stabilization, or sale of the improved asset. The business plan must demonstrate how value creation will achieve the exit within the loan term. Vague or speculative exits are rejected.

Can I get non recourse terms from private credit lenders?

Yes. Major debt funds (Blackstone, Starwood, Apollo, Ares) routinely offer non recourse terms for well capitalized sponsors with strong track records. Loan sizes above $10M from institutional lenders are commonly non recourse with standard bad boy carve outs.

Published: March 31, 2026·Last updated: September 7, 2026·By Ed Freeman, Capital Advisor. PeerSense

What is the best financing for cre (all types) at 65-80% LTV?

Private credit funds provide 65 to 80% LTV financing at 8 to 14% for value add and transitional commercial real estate that does not qualify for conventional or CMBS lending. These non bank lenders offer flexible terms, creative structures, and faster execution for repositioning, lease up, and renovation projects where the business plan creates value beyond current cash flow.

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

Prime: 6.75% 10 Yr Treasury: 4.78% Est. Private Credit Range: 8% to 14%as of Sep 7, 2026

CRE (All Types)

Private Credit for Value Add Commercial Real Estate

Private credit lenders provide 8 to 14% financing for value add and transitional CRE that banks and CMBS won't touch. Flexible terms, 65 to 80% LTV, and creative structures for repositioning plays.

Minimum 30-35% equity required. Experienced CRE sponsors with a clear value add business plan, adequate capital reserves, and a defined exit strategy (sale or permanent refinance).

Talk to PeerSense Call (317) 452 6990

KEY TERMS

Deal Parameters at a Glance

LTV Target

65-80%

Est. Rate Range

8% to 14%

Term

1-5 years

Recourse

Non recourse to partial recourse

DSCR

N/A (underwritten to business plan and as stabilized value)

Closing Speed

14-30 days

Min Loan Size

$5M

Loan Products

Private Credit, Debt Fund

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.

FIT ASSESSMENT

When Is This the Right Fit?

Private credit is the right choice when your CRE asset does not qualify for CMBS or conventional financing due to vacancy, repositioning needs, or transitional cash flow. These deals include office to residential conversions, retail re tenanting, multifamily renovation, and industrial repurposing. Private credit fills the capital gap during the value add period, typically 1 to 3 years, until the asset is stabilized and qualifies for permanent CMBS or conventional debt at lower rates. The higher 8 to 14% cost is justified when your business plan creates 20%+ equity through forced appreciation. If your project is stabilized and cash flowing, skip private credit and go directly to CMBS.

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

ADVANTAGES

Key Benefits

Finance deals that banks and CMBS reject due to vacancy or repositioning risk

Flexible structures: interest only, delayed draw, renovation holdbacks

Non recourse or limited recourse available from major debt funds

14 to 30 day closings for time sensitive acquisitions and refinances

Bridge the gap between acquisition and stabilization for CMBS exit

ALTERNATIVES

Strategic Alternatives

Bridge to CMBS Hotel Acquisition

If your value add project is specifically a hotel acquisition or renovation

Learn more

Warehouse Industrial Bridge Refinance

If your value add project involves industrial or warehouse repositioning

Learn more

Bridge to Permanent Multifamily

If your value add project is multifamily renovation and stabilization

Learn more

Frequently Asked Questions

Private credit refers to non bank lending from debt funds, insurance company subsidiaries, and private equity real estate platforms. These lenders raise capital from institutional investors and provide loans that traditional banks and CMBS conduits cannot or will not make, typically for value add and transitional properties.

See Related Rates by Program

PeerSense covers the full commercial capital stack. These are indicative levels direct capital sources have been pricing across these programs as of October 1, 2026.

Originator warehouse

$100M a month

Focus $100 million a month. Will look at $10 million a month. $10 million is not the focus.

See current rates

Invoice Factoring

0.5 to 3.5% / 30d

B2B invoices from $20 million a month. Advance 80 to 95 percent of face.

See current rates

CMBS Conduit

5.60 to 7.10%

10 year Non Recourse fixed, $10 million and up, fully assumable

See current rates

Bridge Loans

9.00 to 14.00%

$10 million and up. Cash in about 35 percent. Name the takeout first.

See current rates

Data Center

CRS to 89%

$1 billion to $30 billion plus. Signed or guaranteed hyperscaler lease.

See current rates

Contracted revenue sale

Up to 89%

15 year lease signed or guaranteed by a hyperscaler. Size follows the lease.

See current rates

Hotel Financing

Hotel financing is search only for $10 million and up, with cash in about 35 percent.

See current rates

SBA 7(a) & 504

Search path. Not a growth lane on this desk.

See current rates

DSCR Investor

Search path. Portfolio and multi property DSCR of $10 million and up.

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, Talk to PeerSense about your cre (all types) deal with the right capital source, right now.

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Fee at closing only · Complimentary initial consultation

Published by PeerSense Capital Advisory · Written by Ed Freeman, Founder. Updated September 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 September 2026 and may not reflect current 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 with qualified financial and legal professionals before making any financing decisions.