How does private credit differ from a traditional bridge loan?

Private credit funds offer larger loan sizes ($5M-$500M+), 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: May 16, 2026·By Ed Freeman, Capital Advisor — PeerSense

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

Private credit funds provide 65-80% LTV financing at 8-14% 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: 4.25% Est. Private Credit Range: 8% - 14%as of Mar 19, 2026

CRE (All Types)

Private Credit for Value-Add Commercial Real Estate

Private credit lenders provide 8-14% financing for value-add and transitional CRE that banks and CMBS won't touch. Flexible terms, 65-80% 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).

Discuss Your CRE (All Types) Deal Call (317) 452-6990

KEY TERMS

Deal Parameters at a Glance

LTV Target

65-80%

Est. Rate Range

8% - 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

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 1-3 years — until the asset is stabilized and qualifies for permanent CMBS or conventional debt at lower rates. The higher 8-14% 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

14-30 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. Rates and structures across our money pages — updated weekly.

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

Bridge Loans

9.00–14.00%

12–36 mo transitional, SOFR + 470-970 bps, 65-75% LTV

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

Mezzanine Debt

11.00–18.00%

Subordinate to senior, $1M–$50M, capital stack fill

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

Connect with PeerSense — Direct Capital Advisory

PeerSense pre-underwrites every deal before presenting it to our institutional capital sources. With 500+ lender relationships and live market rate intelligence, we match your cre (all types) deal with the right capital source — right now.

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

No upfront retainer · 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.