Commercial Real Estate Gap Financing | CLOSE

Commercial Real Estate Gap Financing | CLOSE

Commercial Real Estate Gap Financing

Address equity shortfalls, refinance gaps, and capex overruns on a defined calendar. Submit one file through CLOSE to receive a lender-grade memo, a term sheet comparison from qualified counterparties, and a dated plan to funding.

The Problem

Senior leverage caps, valuation shifts, and higher service costs leave sponsors short at acquisition, development, or refinance. Common triggers are lower proceeds at LTV sizing, DSCR shortfalls, cost escalation on renovations, or delayed takeouts.

The Impact If You Wait

Purchase agreements lapse, rate locks expire, extension fees accumulate, and tenant plans slip. Capex stalls and NOI recovery is deferred. Senior lenders reduce appetite for amendments when the gap remains undefined.

Solve It Through CLOSE

CLOSE arranges capital that fits the asset plan and the refinancing or sale timetable. Instruments include preferred equity for down payment gaps, mezzanine behind senior facilities with clear intercreditor terms, and bridge financing tied to a dated refinance or asset sale. Intake and document classification are AI assisted with human credit sign off. Execution runs through regulated counterparties. Where required, transactions are conducted under a broker dealer chaperone.

Asset And Business Plan

Property type, market data, lease roll, rent steps, and capex schedule. Stabilization profile with dated milestones and exit assumptions.

Cash Flow And Covenants

NOI bridge, DSCR trajectory, rate hedging, and covenant map. Sensitivities on occupancy, rents, and expenses.

Security And Controls

Mortgage and charges, equity pledges, cash management, reserves, and reporting cadence. Intercreditor framework where applicable.

Capital Options To Close The Gap

Instrument Use Case Tenor Security And Enhancements Typical Sizing
Preferred Equity Equity shortfall at acquisition or recapitalization 2 to 5 years Distribution waterfall, control protections, replacement rights 10 to 30 percent of capitalization
Mezzanine Debt Behind senior facilities to bridge LTV or DSCR gaps 2 to 5 years Intercreditor agreement, junior security, covenants 5 to 20 percent of capitalization
Bridge Financing Short term hold to stabilization or sale 12 to 36 months Mortgage, guarantees where relevant, reserves, business plan covenants Event linked sizing against refinance or sale
Capex And TI Allowances Renovations, lease up costs, and reserves Aligned to project schedule Drawdown tests, cost to complete, and contingency controls As per approved budget and tests

Terms are indicative and depend on jurisdiction, asset quality, tenancy strength, collateral position, and market conditions.

Risk And Bankability Signals

Risk Theme Relevance Lender Takeaway
Tenancy And Income Lease roll, credit quality, and rent steps drive DSCR Staggered roll, strong covenants, and deposits support leverage
Valuation And Liquidity Market depth and comps impact refinance and sale Independent valuation and active buyer pool raise confidence
Capex Execution Scope, contractor quality, and contingencies affect timelines Ring fenced budgets and progress tests reduce slippage
Capital Stack Alignment Rights across senior, mezzanine, and equity Clear intercreditor terms and cure mechanics enable additional capital

Coverage Metrics And Sizing

Metric Definition Typical Threshold
LTV Senior or total debt to appraised value Senior 55 to 65 percent. Total up to 70 to 80 percent subject to asset and plan
LTC Debt to total project cost for value add or development 60 to 75 percent with contingency and cost to complete tests
DSCR NOI to scheduled debt service Stabilized base case at or above 1.20x to 1.30x by asset type
ICR EBITDA to interest expense At or above 1.80x with rate hedging where relevant

Execution Workflow

1. Screening And Fit

Asset summary, rent roll, valuation, capex plan, and sponsor profile. Binary read in three business days from a complete file.

2. Indicative Terms

Structure, pricing, tenor, covenants, reserves, and conditions precedent with a dated timetable to stabilization or exit.

3. Diligence And Credit

KYC and AML, legal title and surveys, environmental reports, engineering where relevant, and intercreditor alignment. Approvals tracked in the portal.

4. Documentation

Facility agreements, security package, cash management, reporting schedules, and reserves. E signature and checklist completion.

5. Funding Mechanics

Conditions precedent met. Proceeds released under counterparty procedures. Drawdowns tied to costs, leasing, and milestones.

6. Monitoring

Performance to budget, covenant tests, reserve status, and quarterly reviews inside CLOSE.

Submit Your CRE File On CLOSE

Provide sponsor details, asset summary, rent roll, valuation, capex plan, and target timetable. Receive indicative terms and a dated plan to funding.

Submit Your Deal on CLOSE

Financely Group provides advisory and arrangement services for professional counterparties through regulated partners. We are not a lender and we do not receive, hold, or transmit client funds. Participation is limited to accredited or professional counterparties where applicable. Transactions are executed through regulated counterparties and, where required, under a broker dealer chaperone. All mandates are best efforts and subject to KYC, AML, sanctions, verification of materials, third party approvals, and market conditions. Minimum preferred transaction size is USD 10 million.

Get 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.

Express Application Submit Your Deal
Request a Proposal
Request a Proposal / Submit a Deal

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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Acquisitions

Secure financing for business or real estate acquisitions. We ease transaction hurdles by reviewing cash flow, synergy opportunities, and exit plans. Complete the form for a customized proposal that supports your strategic investment objectives.

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For Banks

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Submit a Request

Once 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.

Still Have Questions? Schedule a Consultation

If you still have questions after visiting our FAQ and Procedure pages, we invite you to book a paid consultation for personalized guidance. A $250 USD fee applies per session.