Bridge Loans Explained: Short-Term Financing for Multifamily, Commercial & Hospitality Real Estate
Bridge loans serve as non-recourse, short-term financing for properties not yet at stabilized occupancy, ideal for acquisition, renovation, re-flagging, or re-tenanting transitional assets. Randy Efron from Skylatus Property Capital details how these loans “bridge” properties from current to stabilized states, unlocking better permanent financing options.
What Is a Bridge Loan and When Is It Used?
Named for providing a “bridge of time,” these loans fund business plan execution to boost cash flow and value. Once stabilized, properties attract cheaper capital from traditional lenders.
Common Use Cases:
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Renovate/lease-up vacant industrial buildings (2-year term).
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Rebrand hotels (e.g., Hilton to Marriott) with 3-year renovations.
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Bridge loan maturities until major leases execute (6 months).
Key Bridge Loan Terms
Base terms range 6 months to 3 years, extendable to 5 years, matching business plan timelines.
| Term Feature | Typical Range | Purpose |
|---|---|---|
| Base Term | 6 months – 3 years | Execute value-add plan |
| With Extensions | Up to 5 years | Additional stabilization time |
| Recourse | Usually non-recourse | Limits personal liability |
Strategic Advantages
Bridge financing expands options for unstabilized assets, enabling quick closes and repositioning before permanent loans become viable.
Contact Randy Efron at randy.efron@skylatus.com for bridge loan solutions at Skylatus Property Capital.
