Capital markets

Bridge financing

Bridge debt buys time and speed. It works when the exit is identified before you close, and it gets expensive when it is not.

Request financing

Brokered by eXp Commercial, LLC · CCGX arranges and advises on financing; loans are provided by third-party lenders · Subject to lender approval · Not a commitment to lend

What it is

Short-term debt for a property in transition, with a defined exit to permanent debt or a sale.

A bridge loan is short-term financing for a property that does not yet qualify for permanent debt: a lease-up, a turnaround, a census recovery, a licensing transition or a tight closing deadline.

Bridge lenders underwrite the business plan and the exit more than the trailing numbers. In healthcare real estate, bridge debt is often used to carry a property until it has the operating history a bank, agency or HUD-insured lender requires.

When it fits

Signs this is the right tool.

  • The property's current results do not support permanent debt, but a credible plan does.
  • You need to close faster than a bank or government-backed program can.
  • You are bridging to a HUD-insured, agency or bank take-out that needs more operating history.
  • An existing loan is maturing and the permanent solution is not ready yet.

Typical structure

How it is usually put together.

Described in general terms. Actual structure, pricing, leverage and terms are set by each lender or capital partner for each transaction.

Short-term senior loan
A first-position loan with a shorter term than permanent debt, often with extension options tied to performance.
Interest-only payments
Bridge loans are often interest-only, keeping debt service low while the plan is executed.
Funding for the plan
Some bridge loans include future funding for capital improvements or reserves for operating shortfalls.
Defined exit
Refinance into permanent debt or sale. The exit is underwritten before closing, not after.

Underwriting

What lenders look for in healthcare real estate.

Senior housing and behavioral health carry licensing and operating risk that a lender reads alongside the real estate.

The business plan
What changes, by when, and what evidence supports it. Lenders discount optimism.
Exit feasibility
Whether stabilized results will support the take-out loan or a sale at a value that repays the bridge.
Sponsor and operator
Experience executing turnarounds or lease-ups in this asset type, and liquidity to carry the plan.
Census trajectory
Recent trend, the cause of any dip, and the steps already taken to recover.
Licensing status
Any transition, survey issue or corrective plan, and its realistic resolution timeline.

Process

How we work it.

  1. 01

    Define the exit first

    We start with the permanent loan or sale that ends the bridge and work backward.

  2. 02

    Document the plan

    Budget, timeline and milestones a bridge lender can underwrite.

  3. 03

    Match lenders

    Bank bridge, debt funds and private credit price different stories differently. We target the ones that fit.

  4. 04

    Compare terms

    Extensions, prepayment, reserves and future funding mechanics side by side.

  5. 05

    Close and plan the take-out

    The take-out conversation starts at closing so the refinance is a plan rather than a scramble.

Next step

Request a capital review.

Tell us about the property and what the capital is for. A CCGX advisor will review it confidentially and tell you what looks financeable and roughly where.

Request financingSize a loan

Related solutions