Today’s rates for a wide range of commercial property and loan types.
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Commercial Real Estate Bridge Loans
If you want to reposition or rehabilitate a commercial property, a bridge loan can be a great solution. Typically lasting between 12 - 24 months, bridge loans are often interest-only, offer up to 75% LTC, start at just 4.75%, and have non-recourse options available.
Commercial Bridge Financing for Your Value-Add and Rehab Loans
Commercial Real Estate Loans has a proprietary bridge loan platform that offers temporary financing for borrowers seeking to rehab or reposition commercial properties. These properties may not qualify for permanent financing or whose short-term goals require short-term funding.
Commercial bridge loans are generally structured to account for capital expenditures. Depending on the situation, they also account for interest and other reserves. Bridge financing for a commercial property is usually used to stabilize the property for a sale or recapitalization and permanent financing. If a transition to permanent financing is preferred, Janover can assist in an easy shift to the most suitable financial mechanism for that situation.
Commercial Bridge Loan Terms 2024
Minimum Loan: $1 million
Term: 12 to 24 months
Leverage: Up to 75% LTC
Amortization: Interest only
Recourse: Nonrecourse options are available
Prepayment: Usually none
Fees: From 2% of the loan amount
Loan amounts determined by total project cost.
Fast closing process.
Available when other lines of credit are not attainable.
An alternative to permanent financing.
Allows for recapitulation at stabilization.
Higher rates.
Very high rates if financing is for financial, legal or credit issues.
Loans are short term and generally need to be refinanced inside 24 months.
Rates are determined by the strength of the sponsorship and the loan purpose. Existing properties with in-place cash flows will receive more aggressive financing. In contrast, bridge loans for credit and legal issues or bridge loans that require an extremely expedited close (i.e. within two weeks) will come with more expensive terms.
Loans over 65% LTC or under $10 million will be full recourse. Larger loan amounts at lower leverage points will be nonrecourse with standard carve-outs. Nonrecourse financing is available at higher leverage or lower loan dollars at higher interest rates (generally double-digit).