Underwrite the opportunity
We review sponsorship, property performance, business plan, and priorities before approaching the market.
Bridge-to-Perm financing
Bridge-to-Permanent Loans for CRE Acquisition and Stabilization
Quick answer: Bridge-to-perm loans combine a short-term acquisition or construction facility with a pre-committed permanent take-out under one lender, eliminating the refinance risk that comes with executing a separate take-out on a stabilized asset. Commercial Lending Solutions sources these structures from banks, debt funds with forward commitment programs, and agency lenders offering Forward Standby Commitments for multifamily.
NationwideMarket coverage
1,000+Capital relationships
$2MM+CLS engagement floor
24 hoursInitial response
When it fits
When Bridge-to-Perm financing fits.
Traditional value-add or ground-up commercial real estate execution requires a sponsor to close a bridge or construction loan, complete the business plan, then refinance into permanent financing through a separate process. This exposes the sponsor to interest-rate risk during the construction or stabilization period and the execution risk of finding a permanent lender willing to underwrite on day-one stabilized fundamentals. A bridge-to-perm structure removes both. The bridge or construction phase prices and underwrites with the permanent take-out already in place, often at a locked rate or rate cap, and converts automatically upon meeting pre-agreed stabilization tests (DSCR, occupancy, NOI). This product is most powerful for ground-up multifamily that will convert to agency, value-add commercial that will convert to bank or life company, and large industrial developments with credit tenant pre-leases.
Structure before pricing: leverage, recourse, reserves, prepayment, and closing certainty can matter as much as the headline coupon. We test those trade-offs before recommending a path.
01
Ground-up multifamily projects targeting agency permanent take-out at stabilization
02
Industrial build-to-suit with credit-tenant pre-leases supporting life company conversion
03
Value-add multifamily repositioning eliminating refinance risk during business plan execution
04
Mixed-use development converting to bank permanent upon lease-up
05
Sponsors locking rate in a rising-rate environment to protect projected exit yields
06
Institutional developers requiring certainty of execution on long-cycle projects
Lender selection
How We Source Bridge-to-Perm Capital
We do not treat the lender list as a directory. We target the desks whose current appetite fits the asset, sponsorship, market, and business plan, then compare the full execution, not only the rate.
| Capital source | Where it may fit |
|---|---|
| Regional Banks with Construction-to-Perm Platforms | Relationship-oriented capital that can offer local market knowledge and structural flexibility, with recourse often considered. |
| Agency Forward Commitments (Fannie Mae, Freddie Mac) | Programmatic multifamily or housing capital with defined underwriting, documentation, and eligibility requirements. |
| Life Insurance Companies with Forward Commitment Programs | Long-duration fixed-rate capital for high-quality assets and experienced sponsors, generally with conservative leverage. |
| Debt Funds with Bridge-to-Agency Structures | Programmatic multifamily or housing capital with defined underwriting, documentation, and eligibility requirements. |
| National Banks | Relationship-oriented capital that can offer local market knowledge and structural flexibility, with recourse often considered. |
How we work
One process. Multiple capital sources.
We position the transaction, identify the lenders most likely to compete, and compare proposals on economics and execution risk, not just headline rate.
A well-structured financing process should create real choices for the borrower, not simply deliver the first term sheet.
Target the right lender desks
The transaction is matched to lenders whose current appetite fits the property, market, and structure.
Create a comparable field
Proposals are evaluated across rate, proceeds, recourse, reserves, prepayment, and closing certainty.
Manage execution through closing
We coordinate lender diligence, third-party reports, and issue resolution until the loan funds.
National reach
Market knowledge where the deal requires it.
We arrange bridge-to-perm financing nationwide while matching each transaction to capital sources active in that market and property type.
Atlanta, GABoston, MAChicago, ILDallas, TXDenver, COHouston, TXLos Angeles, CAMiami, FLNashville, TNNew York, NYPhoenix, AZSan Diego, CASan Francisco, CASeattle, WATampa, FL
Browse all markets →
Questions
Bridge-to-Perm financing, clarified.
The final structure depends on the asset, sponsorship, and market. These are the starting parameters we discuss most often.
Working out equity? Our commercial property down payment guide covers typical requirements by loan type: 20% to 30% conventional, 10% for SBA owner occupied.
A bridge-to-perm loan combines a short-term bridge or construction facility and its permanent take-out in one loan from a single capital source, typically sized from $5M to $100MM and above. The property is financed through construction or stabilization, then converts automatically to long-term debt once pre-agreed performance tests are met, with no second closing.
The construction or bridge phase typically prices at SOFR plus 250 to 400 basis points and runs 24 to 36 months. The permanent rate is locked or capped at the initial closing, then amortizes over a 5 to 30 year term. Locking the take-out rate up front is the main reason sponsors choose this structure.
Leverage runs up to 75% of total cost during the construction or bridge phase and 70% to 75% of stabilized value at conversion. Most structures carry recourse and a completion guaranty while the business plan is executed, then burn off to non-recourse once the asset hits its stabilization tests.
Conversion is governed by tests written into the original loan documents, usually a minimum debt service coverage ratio, a physical and economic occupancy floor, and a trailing NOI threshold measured over three to twelve months. Missing those tests is the real risk in this structure: the loan stays in its bridge phase at the higher floating rate.
A separate take-out exposes the sponsor to two risks: where rates sit at stabilization, and whether any permanent lender underwrites the asset at all. A bridge-to-perm structure removes both by committing the take-out at day one. Regional banks, agency forward commitments, life insurance companies, and debt funds all offer versions; Commercial Lending Solutions arranges them across those sources.
Let's evaluate the right bridge-to-perm structure.
Share the property and financing request. We will respond within 24 hours with an initial view.