Bridge Loans for Value-Add CRE Projects (Nationwide)
Value-add commercial real estate projects require strategic improvements to increase NOI, occupancy, and property value. Bridge loans are the primary financing tool investors use to execute these business plans.
What Is a Value-Add CRE Project?
A value-add project involves acquiring a property that is underperforming relative to its potential and implementing improvements to increase its income and long-term value. This includes renovations, re-tenanting, operational improvements, amenity upgrades, rebranding, and market repositioning.
Why Bridge Loans Are Ideal for Value-Add
Interest-Only Payments: Reduces monthly carrying costs during the renovation and lease-up period, improving cash flow management.
High Leverage: Up to 85% LTC on strong value-add projects, reducing the equity required from the sponsor.
Flexible Draw Schedules: Renovation funds are released as work is completed, aligning capital with construction progress.
Fast Closings: Allows investors to secure time-sensitive deals in competitive markets before competitors with slower capital.
Eligible Value-Add Projects
- Multifamily unit renovations and amenity upgrades
- Retail re-tenanting and center improvements
- Office modernization and lobby upgrades
- Industrial tenant improvements and lease-up
- Hospitality PIPs and repositioning
- Mixed-use improvement and stabilization