Keep Bridge Loans in Your CRE Finance Arsenal

As banks raise their requirements and construction costs rise, these loans have become an even more useful tool in the value-add and redevelopment space, says Calmwater Capital’s Tristine Lim.

In today’s commercial real estate lending climate, owners and developers increasingly see bridge loans as an essential tool―almost a magic bullet―that can overcome hurdles to remain competitive in the multifamily marketplace. As the cost of home ownership continues to price middle-income earners out of the buyers’ market and into the rental marketplace, multifamily owners continually invest in their properties to attract this group and grow profits.

When it comes to the cost of value-add construction or redevelopment―whether it’s the cost of construction, the need to refinance or consolidate debt, or a desire to buy out other owners―bridge loans have become the weapon of choice in this segment of the market.

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