California Commercial Bridge Loans
Acquire, Reposition, Stabilize

A commercial bridge loan is short-term financing (typically 6–36 months) used to bridge the gap between an immediate capital need and a long-term financing solution. Borrowers use bridge loans to acquire, reposition, or stabilize commercial properties that do not yet qualify for permanent financing. Once the property meets stabilization criteria — typically 90%+ occupancy for 90+ days — the borrower refinances to a permanent loan at lower rates.

Most commercial property types qualify: multifamily (5+ units), office, retail, industrial, mixed-use, self-storage, mobile home parks, and hospitality. Properties that are vacant, partially leased, undergoing renovation, or in transitional markets are the most common bridge loan candidates. Lenders underwrite based on the as-is value and the strength of the business plan, not just current income.

Commercial bridge loans close in 7–21 days with the right lender. The streamlined process focuses on the property and the sponsor's track record rather than extensive income verification. Having title, insurance, and entity documents ready in advance can compress the timeline to 7–10 days for urgent acquisitions.

Both are short-term asset-based loans, but commercial bridge loans are typically larger ($500K+), offered by institutional lenders and debt funds, and used for transitional CRE. Hard money loans are often smaller, sourced from private individuals or small funds, and commonly used for residential fix-and-flip. Bridge loans generally carry lower rates (9–12%) than hard money (11–15%) and have more structured terms.

Most commercial bridge lenders require interest reserves — typically 6–12 months of interest payments held in an escrow account at closing. This ensures the lender is paid during the repositioning period even if the property is not yet generating full income. Some lenders allow reserves to come from the loan proceeds rather than requiring the borrower to bring additional cash.

Yes. Value-add multifamily is one of the most common commercial bridge loan use cases in California. Lenders underwrite based on the as-stabilized value (post-renovation, post-lease-up) and fund up to 80% of total project cost including acquisition and renovation budget. Once you achieve stabilized occupancy (typically 90%+ for 90 days), you refinance to a DSCR or agency permanent loan.