In the world of commercial real estate, timing is often more valuable than cost. For developers and sponsors navigating acquisitions, entitlement risks, or transitional assets, traditional lenders can slow a deal down—or kill it entirely. That’s where bridge lending comes in, not as a last resort, but as a strategic tool.
At Solomon Stanley Financial, we structure bridge loans to act as catalysts for value creation. Whether the goal is to acquire quickly, execute improvements, or buy time before stabilization, our team helps align short-term capital with long-term vision.
What Is a Bridge Loan in Real Estate?
A bridge loan is a short-term financing instrument—typically ranging from 6 to 24 months—used to “bridge” the gap between a pressing capital need and a longer-term financing solution.
These loans are commonly used for:
- Acquiring properties before traditional financing is in place.
- Renovating or enhancing assets not yet stabilized.
- Refinancing debt in maturing or distressed scenarios.
- Executing value-add strategies where timing is critical.
While banks may avoid these deals due to risk profiles or timing concerns, bridge lenders move faster, underwrite differently, and often focus more on the asset and exit strategy than the borrower’s balance sheet.
Strategic Advantages of Bridge Lending
Bridge financing isn’t just about filling a gap—it’s about controlling the tempo of your capital strategy. When structured correctly, it can provide
- Speed: Fast closings, often in under 30 days
- Flexibility: Interest-only payments, tailored terms, and extension options
- Leverage: Higher LTC/LTV than permanent debt allows
- Optionality: Time to execute entitlements, leases, or repositioning
At Solomon Stanley, we take this a step further by ensuring each bridge loan supports the broader deal lifecycle. We don’t just source capital, we design it to fit the exit.
When to Use a Bridge Loan Instead of Traditional Debt
Bridge loans outperform conventional lending in scenarios where time, complexity, or project dynamics exceed what a bank can handle. Common situations include:
- Acquiring off-market opportunities where speed is non-negotiable
- Assets with physical or financial distress that preclude bank underwriting
- Investors repositioning underperforming properties within a 12–18 month window
- Deals involving entitlement risk, tenant improvement cycles, or major lease-ups
These are the transactions that often define careers or portfolios—and they can’t wait for committee review.
Our Approach to Structuring Bridge Lending
Solomon Stanley doesn’t take a one-size-fits-all approach to short-term capital. We work directly with private lenders, debt funds, family offices, and institutional capital partners to tailor loans around deal logic—not lender preferences.
Our bridge loan structures are designed to:
- Match hold periods and exit strategies
- Integrate mezzanine or preferred equity where needed
- Address timing gaps between phases of development or refinance
- Protect sponsor flexibility with smart prepay language and extension mechanics
Each transaction is modeled to assess not just today’s capital need, but tomorrow’s refinancing risk and IRR impact.
A Real Example: Repositioning a Hospitality Asset
A regional sponsor acquired a boutique hotel in Southern California facing NOI volatility and deferred maintenance. Traditional lenders rejected the deal due to inconsistent cash flow.
We structured a 12-month bridge loan covering 75% LTC with an interest-only profile and embedded extension. The sponsor executed a CapEx plan, improved ADR and occupancy, and refinanced with permanent debt nine months later—retaining majority equity.
This is where bridge capital isn’t just reactive, it’s transformative.
What Sets Solomon Stanley Apart
Where many firms offer access, we offer structure. Our strength lies in seeing bridge lending as part of a full capital roadmap, not a transaction in isolation. That includes:
- Advisory-driven underwriting based on business plan, not templates
- Access to competitive, high-speed bridge lenders
- Understanding of value creation timelines and development risk
- Integrated planning for take-out strategies from the start
Because the real cost of capital isn’t the rate, it’s the opportunity cost of delay, misalignment, or inflexible terms.
For developers, sponsors, or investors pursuing transitional assets or value-add opportunities, bridge loans are not simply temporary. They’re strategic. And at Solomon Stanley, we help you structure them accordingly.
If you’re navigating a complex acquisition or need financing fast, we’re ready to help you move with clarity and confidence.
