Bridge Loan Financing
Is your commercial property acquisition or value-add project facing timing constraints?
In today’s dynamic commercial real estate (CRE) market, opportunities require swift action. Traditional lenders often can’t match the pace of competitive acquisitions or provide the flexibility needed for transitional properties. NetLeaseX Capital specializes in bridge loan solutions that enable real estate investors and developers to seize time-sensitive opportunities, fund value-add improvements, and navigate challenging market conditions.
Work with NetLeaseX Capital to secure fast, flexible bridge financing for your CRE needs
As a specialist in CRE finance, NetLeaseX Capital offers customized bridge loan solutions designed specifically for sophisticated real estate investors and developers. Our decades of experience in commercial property financing allows us to structure bridge loans that address your unique requirements while providing the speed and certainty of execution essential in today’s market.
Our bridge loans can help you:
- Close deals faster – Secure competitive acquisitions with funding in as little as 2-4 weeks
- Finance property transformation – Access capital for renovations, repositioning, tenant improvements, and lease-up costs
- Overcome financing hurdles – Obtain funding based on property potential when banks focus solely on current performance
- Optimize capital deployment – Utilize interest-only payment structures with potential reduced “pay rate” options where additional interest accrues and is due upon loan maturity
- Navigate market uncertainty – Gain valuable time to execute investment plans, stabilize assets, or await favorable exit conditions
- Create seamless exit paths – Transition smoothly to permanent financing with flexible prepayment terms
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Enhanced Capital Solutions
For transactions requiring additional leverage beyond conventional bridge loan parameters, NetLeaseX can arrange supplementary subordinated financing in the form of preferred equity to cover any additional funds needed over maximum bridge loan financing. This comprehensive capital stack approach enables execution of projects with complex financing requirements or higher leverage needs while maintaining appropriate risk-adjusted return profiles.
Rescue Financing Through Bridge Loans
Bridge loans can be an effective tool for rescue financing when properties face financial distress or maturing debt challenges. By providing immediate liquidity and breathing room, bridge financing can help property owners avoid foreclosure, negotiate with existing lenders, fund critical property improvements, and create time to implement turnaround strategies. NetLeaseX specializes in structuring bridge loans that address distressed situations while protecting borrower equity and establishing clear paths to recovery.
Specialized Applications of Bridge Financing
Borrowers can use bridge financing to capitalize on value-added investment opportunities, which may not qualify for conventional financing due to insufficient cash flow or debt service coverage. In addition, borrowers can access bridge funding to:
- Repurchase existing debt from lenders at a discount;
- Acquire non-performing loans secured by real property, and
- Acquire equity interests in limited partnerships, often at a discount to their intrinsic value due to their illiquid nature.
Typical Bridge Loan Parameters
- Loan Size: $1 Million to $75+ Million
- Term: 12-36 Months (with extension options available)
- Leverage: Up to 75% LTV / 85% LTC (Additional leverage available through subordinated financing options)
- Structure: Interest-only during initial term
- Rates: Competitive floating rates indexed to SOFR
- Recourse: Non-recourse options available (subject to conditions)
- Closing: Fast-track process with closings in as little as 2-4 weeks
Why Choose NetLeaseX for Your Bridge Loan?
- Experience: Our team brings decades of CRE finance expertise to every transaction
- Speed & Reliability: Proven track record of fast, certain execution when timing is critical
- Transparency: Clear communication and straightforward fee structures with no hidden costs
- Partnership Approach: We work collaboratively to understand your investment strategy and structure the right financial solution
- Market Knowledge: Deep understanding of today's challenging CRE landscape and how bridge financing can help you navigate it successfully
- Comprehensive Financing Solutions: Ability to structure multi-tiered capital stacks incorporating senior debt, mezzanine financing, and preferred equity
Common Use Cases for Bridge Loans
- Time-sensitive property acquisitions
- Value-add renovation and repositioning projects
- Stabilization of properties with vacancy or lease-up needs
- Partner buyouts or ownership restructuring
- Refinancing maturing debt in challenging capital markets
- Acquiring new properties before selling existing assets
- High leverage transactions requiring capital stack optimization
Request a Consultation
Contact us today to discuss your situation in a complimentary consultation. We'll work with you to evaluate all available options and chart the best path forward. To get started, please contact Ron Zimmerman at (513) 621-1031, via online chat on this website, or email him directly at ronz@netleasex.com.
NetLeaseX Capital Offers Family Offices Direct Access to Rescue Financing Investments in Real Estate
Famcap.com
October 2023
This article discusses how family offices and other sophisticated real estate investors can access NetLeaseX’s platform to freely review NetLeaseX’s pre-screened, “investment-ready” transactions, including rescue financing, preferred equity and co-GP investment opportunities. The article further discusses why NetLeaseX believes that a better way to invest in commercial real estate in today’s market is to provide rescue financing to sponsors, particularly in multifamily.
Using Preferred Equity to Increase Real Estate Investors’ Leverage and Enhance Returns
White Paper
Original: September 2022
Updated: October 2024
This whitepaper discusses how NetLeaseX works with real estate investors to structure investment relationships with “below the radar” high net worth investors, family offices, registered investment advisors, equity funds, and institutional investors to help such investors, including non-institutional sponsors and even new sponsors who lack financial resources, to raise preferred equity so that they can close more deals and earn more fees.
Strategize With Preferred Equity
The Scotsman Guide
December 2018
This article gives an overview on how real estate investors can increase leverage by raising preferred equity to fill the gap between the amount an investor can raise in senior debt financing and the sponsor’s equity investment. This article further discusses various ways preferred equity investments can be structured including, for example, creating one or more tiers, waterfall priority order (e.g. A/B structure vs. pari passu), recourse, repayment schedules, control rights, and capital shortfall requirements.
Throw Out A Lifeline
The Scotsman Guide
July 2020
This article discusses how real estate investors may be able to raise rescue financing to cover operating losses and/or mortgage payments during the Covid-19 crisis. Raising rescue financing is especially important for real estate investors who may face substantial liability due to personal loan guarantys if their lender were to foreclose; thus, triggering a forced sale at a fire-sale price.
Ride To The Rescue
The Scotsman Guide
August 2020
As a follow-on article to “Throw Out A Lifeline”, this article discusses how rescue financing, in effect, works like bridge equity, a temporary infusion of cash from an investor that well eventually be bought out via refinancing or sale when real estate markets normalize. This article further lists various ways how rescue financing can be structured both as debt and equity investments.