Generally, bridge loans are provided by specialized lenders as opposed to commodity lenders given special requirements of duration and other material events pertaining to with the project. Terms are typically flexible. Interest rates are generally floating rate based on current LIBOR rates.

Bridge loans work well in situations where an existing loan on a property comes due and the property is slated for redevelopment but various plans and permits are still being obtained or project pre-leasing targets have yet to be achieved.

Additionally, bridge loans also come under different names such as a "standby commitment". This is a commitment made during the construction financing phase where a developer has secured construction financing but has yet to secure permanent financing. In this case, a lender issues a stand-by commitment (typically 12-36 months) in exchange for a commitment fee which allows the construction financing to proceed while the project sponsor continues to seek the permanent loan.

Please contact us to discuss your specific situation.