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 Terms