Bridge Loans for Distressed & Underperforming Assets (Nationwide)
Distressed and underperforming commercial properties often require strategic improvements, operational changes, or repositioning before qualifying for long-term financing. Bridge loans provide the capital needed to acquire, stabilize, and reposition these assets.
What Qualifies as Distressed or Underperforming?
- Low occupancy or high vacancy
- Weak or negative NOI
- Significant deferred maintenance
- Poor or misaligned management
- Outdated interiors or exteriors
- Expired anchor tenants or major lease expirations
- Operational inefficiencies
- Market repositioning needs
Why Bridge Loans Are Ideal for Distressed Assets
Asset-Based Underwriting: Lenders focus on the property’s potential value after improvements, not its current depressed performance.
Fast Closings: Distressed opportunities often require immediate action before other buyers or lenders can move in.
Renovation and Repositioning Capital: Bridge loans can include a funded renovation budget released via draw schedule as work is completed.
Flexible Structures: Interest-only payments reduce cash flow pressure during the turnaround period.
Typical Terms
- Loan amounts: $1M – $40M+
- Leverage: Up to 70% LTV (based on as-is value)
- Terms: 12–36 months, interest-only