Bridge-Loan Solutions for U.S. Multifamily Acquisitions
Bridge-Loan Solutions for U.S. Multifamily Acquisitions
1 Why Sponsors Use Bridge Debt
Multifamily buyers often face competitive bids, lender timing constraints, or value-add business plans that make agency take-out impossible at signing. A bridge loan delivers speed to close, funds for cap-ex, and interest-only flexibility until the asset stabilises and qualifies for permanent debt. Financely sources that capital from a syndicate of banks, insurance lenders, debt funds, and note-on-note investors—cutting cash equity and locking extensions aligned with the renovation timeline.
2 Our Underwriting Framework
- T-12 and T-3 financials normalised for taxes, insurance, payroll, and repairs.
- Rent-roll scrub —economic vs physical occupancy, lease expirations, concessions.
- Market comps —CoStar, Yardi, and in-house data for achievable post-renovation rents.
- Business-plan stress test —DSCR and exit-cap under rate +200 bp and 10 % cap-ex overrun.
- Preliminary quote issued in 48 hours; credit memo circulated to lender network in five business days.
3 Typical Bridge Terms We Place
- Loan-to-cost (LTC) up to 80 % all-in, including renovation budget.
- Facility size USD 5 m – 125 m; larger via club-deal format.
- Tenor 12–36 months, two 6-month extensions subject to covenants.
- Pricing SOFR + 300–550 bp senior; mezz/preferred as needed at SOFR + 700–900 bp.
- Amortisation interest-only; optional sweep after stabilised DSCR > 1.30×.
- Cap-ex hold-back monthly draws against invoices; completion test before extension.
4 Process Timeline & Responsibilities
| Milestone | Financely Deliverable | Calendar Days |
|---|---|---|
| Intake & Indicative | Term sheet with advance rate, spread, fees. | 2 |
| Credit Committee | Lender pack: model, market study, cap-ex scope. | 5 |
| Third-Party Diligence | Appraisal, PCA, Phase I ESA ordered & tracked. | 10–14* |
| Final Approval | Commitment letter, rate-lock, legal checklist. | 3 |
| Docs & Closing | Loan agreement, pledge, title, insurance. | 7 |
*third-party timeline can run parallel to credit-committee review
5 Distribution Channels
Financely allocates funded commitments among relationship banks for servicing continuity, then allocates participation strips or B-notes to insurance companies and private-credit funds seeking floating-rate exposure. Deals can optionally be re-packaged into short-duration note programs for family-office or REIT investors—providing a take-out path that frees senior lenders for the next acquisition.
6 Why Financely
- Response speed: indicative quote within 48 h; mandate-to-fund typically 30–45 days.
- Capital breadth: 90 CRE bridge desks, 40 mezz/preferred providers, 12 note-on-note investors.
- Execution certainty: 96 % of signed mandates funded since 2022.
- Full visibility: client portal shows checklist status, third-party report ETA, and syndication progress in real time.
Acquiring or repositioning a multifamily asset and need bridge debt that closes on time? Financely underwrites, structures, and syndicates capital so you can execute your business plan without over-equitising. Request terms and see the full workflow.
Request Multifamily Bridge TermsGet Started With Us
Submit Your Deal & Receive a Proposal Within 1-3 Working Days
Submit your deal using our secure intake form, and receive a quote within 1-3 business days. Existing clients can connect with their relationship manager through our secure web portal.
All submissions are
promptly reviewed, and all communications are conducted through the intake form or the client portal for a seamless and secure process.
Thank you for considering working with us. A nominal fee of US$500 is required upon completion of each form. This fee covers the time and effort we invest in reviewing your submission and crafting a thorough proposal. We receive numerous inquiries and prioritize those that carry this fee, ensuring serious applicants receive prompt attention.
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Submit a RequestOnce we receive your submission, our team will review your information to determine feasibility. If eligible, you will receive a proposal or term sheet within 1–3 business days. Visit our FAQ and Procedure pages for more information.
Disclaimer: Financely provides financing based on due diligence and feasibility. Approval is not guaranteed, and past performance does not predict future outcomes. All terms are subject to review. Financely primarily assists with structuring and distribution. Qualified parties carry out the project if the client approves the proposal.
