Private Credit for Commercial Real Estate Sponsors: Alternative Financing That Scales
Private Credit for Commercial Real Estate Sponsors: Alternative Financing That Scales
Traditional banks impose strict covenants, lengthy approval cycles and tight loan-to-value limits on commercial real estate deals. Private credit provides a direct path to acquisition, construction and recapitalization capital. With flexible structures and a wide pool of non-bank lenders, sponsors secure capital when and how they need it.
1. Why Private Credit Gains Traction in CRE
As Basel III rules tighten bank balance sheets, non-bank capital steps in. Private credit funds and specialty lenders can underwrite complex projects using real asset collateral, sponsor track record and exit strategies. Loan approval can occur in days rather than weeks, and structures adapt to fluctuating project timelines.
2. Core Private Credit Solutions
- Bridge Loans Short-term lines (6–24 months) for property acquisitions, LOI deposits and closing gaps.
- Construction Financing Senior and mezzanine tranches to cover ground-up development or renovations.
- Mezzanine Debt Subordinated financing that fills loan-to-cost and loan-to-value gaps without equity dilution.
- Preferred Equity Hybrid capital offering fixed returns ahead of common equity, preserving promote structure.
- Refinance & Recap Facilities Term debt replacements or extensions to relieve short-term bank burdens and optimize capital costs.
3. Underwriting Expectations for Sponsors
Lenders assess loan-to-value (often up to 75%), debt-service coverage ratios (minimum 1.25×), sponsor track record, market fundamentals and clear exit paths. A well-prepared package includes pro forma cash flows, development budgets, rent rolls and sponsor equity contributions.
4. How Financely Connects Sponsors with Capital
Our platform underwrites deals with deep due diligence, then matches them to over 180 private lenders with $30 billion in dry powder. From initial mandate to term sheet usually takes 7–21 days. We handle credit documentation, investor distribution and closing coordination through one digital interface.
5. FAQs
What deal sizes can you support?
We structure private credit packages from $5 million to $250 million, covering acquisitions, ground-up construction and late-stage recapitalizations.
How long does funding take?
A typical cycle runs 7–21 days once full documentation is submitted. Urgent bridge facilities can close in under 10 days.
What interest rates and fees apply?
Floating-rate bridge loans and construction facilities start around 8–12% plus an origination fee of 1–2%. Mezzanine tranches carry 12–18% with warrants or promote rights.
At Financely, we underwrite, structure and distribute private credit solutions for commercial real estate sponsors at every stage of growth. Our team navigates asset based lending criteria, matches you with the right non-bank lenders and manages closing logistics—so you secure the capital you need without tying up your core banking relationships.
Explore Private CRE Financing OptionsGet 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.
Trade Finance
Tap into solutions like letters of credit, bank guarantees, and payment facilitation. We address the challenge of global transaction risk through structured strategies that foster cross-border growth. Complete the form to unlock streamlined funding aligned with your commercial objectives.
Submit a RequestProject Finance
Access non-recourse funding for infrastructure, renewable energy, or other capital-intensive ventures. We mitigate capital constraints by isolating project assets and focusing on risk management. Provide your details to receive a structure that drives growth and maximizes returns.
Submit a RequestAcquisitions
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.
Submit a RequestFor Banks
Financely assists banks facing Basel III pressures by distributing trade finance deals and providing collateral for letters of credit. We reduce capital burdens while preserving client relationships and fostering service expansion. Submit your request to optimize your trade finance offerings.
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.
