Institutional-Scale Private Credit Fund Structuring Flexible Bridge Facilities

Capital Spotlight – Highlighting featured capital investors. We regularly publish the detailed criteria of our most unique real estate capital sources.

Institutional-Scale Private Credit Fund Structuring Flexible Bridge Facilities

Valencia Realty Capital recently conducted an interview with an established balance sheet lender operating a ~$1.5 billion private debt fund in the commercial real estate space. This lender is actively deploying capital across the U.S in primary and secondary markets, focusing on short-term financing for established real estate sponsors.

This lender’s approach is rooted in certainty of execution, with an internal approval process that enables term sheets within 7 business days and closings in as fast as 30 days. With a focus on value-driven opportunities across primary and secondary markets, this lender has the ability to quote in the mid 300’s over SOFR while remaining competitive on leverage. They also have the ability to be flexible in their deal structures. This allows them to lend on construction completion deals with 50%+ of construction completed, while offering step down rate structures as construction is completed.

Loan Characteristics

• Check Sizes: $15MM–$80MM (Minimum $10MM initial outlay)
• Average Loan Term: 1–5 years
• Pricing: 350–450 bps over SOFR (tightest pricing for new-build multifamily)
• Leverage: Up to 75% LTV, with flexibility based on asset value and business plan
• Recourse: Non-recourse standard, with completion guarantees where applicable

Flexibility and Structure

• Markets: Primary and secondary U.S. markets (Suburbs included)
• Property Types: Multifamily, Industrial, Self-storage, Hospitality (flagged and un-flagged)
• Construction: No ground-up development, but will fund construction completion (typically 50%-60% completed before funding)
• Multifamily Vintage Preference: ability to lend on 1970’s vintage assets (tighter pricing for newer product)
• Underwriting Approach: Full DSCR analysis with a value-centric lens, focusing on exit strategies and exit LTV metrics

Speed & Certainty of Execution

This lender prides itself on its efficient approval process:

1. Soft Terms: Delivered within a week, following internal discussions.
2. Investment Committee Review: Occurs weekly
3. Fully Approved Term Sheet: Once IC signs off, the term sheet is binding, with no need for re-approval if key terms remain intact.
4. Closing Timeline: typically 30–45 days.

Sponsor Requirements

• Experience: Strong preference for experienced sponsors with a proven ability to execute similar business plans.
• Net Worth & Liquidity: 100% of the loan amount in net worth and 10% in liquidity.
• Equity Contribution: Flexible but expects meaningful skin in the game.

Conclusion

This lender is an ideal partner for sponsors pursuing heavy value-add and opportunistic strategies. Their ability to offer competitive pricing, rapid execution, and geographic flexibility makes it a standout in this capital markets environment.

This funds existing balance sheet strategy provides borrowers with the certainty they need while maintaining adaptability for complex transactions. For sponsors focused on scaling their portfolios and maximizing leverage in a challenging debt environment, this lender offers a compelling solution.

If this capital source may be of interest, book a call to discuss a potential capital arrangement.

If this capital source may be of interest, book a call to discuss a potential capital arrangement.

Read our last Capital Spotlight: “Institutional Middle Market Lender With Discretionary Insurance Capital”