Capital Spotlight – Highlighting featured capital investors. We regularly publish the detailed criteria of our most unique real estate capital sources.
Flexible Bridge Lending with Execution Certainty
VRC recently re-interviewed one of our closest bridge lending relationships. This group is an ideal debt fund for established real estate sponsors seeking capitalization for prospective value-add projects due to their speed, flexibility and certainty of execution. Headquartered in the Northeast and operating nationally, this lender has carved out a niche with a hands-on approach to complex situations and a reputation for closing in tight timeframes.
While the firm has historically operated across the low to middle market bridge space ($5MM-$25MM), it recently expanded its program offerings to be more competitive in larger transactions with sponsors demonstrating a deeper resume. With this new mandate this lender is seeking to originate senior bridge loans for value-add multifamily, industrial and hospitality deals between $30MM and $75MM+, and can price loans between SOFR+ 300-425. They are willing to be creative and can structure “bridge-to-bridge” deals as well as “construction-completion” in strong markets. They are an ideal lending partner for sponsors seeking a higher leverage solution (up to 80%+) for projects in need of a more sophisticated underwriting exercise.
Loan Characteristics
- Average Deal Size: $30MM to $75MM+
- Loan Term: 12 to 60 months (with extensions)
- Pricing: Starting at SOFR + 300-425
- LTC: Up to 85%+ LTC with strong underwriting metrics
- Underwriting Criteria: Ability to size proceeds to ~8.0% debt yield (potentially lower in strong markets)
- Recourse: Partial and non-recourse options available
Flexibility and Structure
Based on what Valencia is seeing in the market this capital source has a unique blend of pricing, leverage, speed, and underwriting sophistication. This blend of qualities is allowing them to create loan products that are extremely useful and relevant in today’s capital raising environment. Given their min debt yield requirements they can push leverage up to 85% LTC. We believe sponsors may find this useful when struggling to raise equity for new acquisitions, or in deals that are mid business plan and in need of capital injection to reach stabilization. This lender also has the ability to close in 14–30 days, has a flexible prepayment structure, flexible recourse options, AND is competitively priced!
Product Spotlight: Value-Add & Special Situations
This lender excels at structuring creative capital stacks around transitional and repositioning scenarios. Target use cases include:
- Bridge-to-Bridge executions
- Construction completion loans for partially built assets
- Condo inventory and hospitality loans, including distressed or discounted payoffs
- Cash-out or earnout financing for pre-stabilized multifamily
Execution & Borrower Fit
This firm is built for experienced sponsors navigating time-sensitive transactions where banks fall short. The team underwrites for asset value, borrower strategy, and local market dynamics, rather than rigid credit models. Their internal decision-making structure allows for:
- Fast feedback and term sheet turnaround
- Execution confidence, backed by discretionary capital
- Willingness to engage in special situations when a clear business plan and viable exit are present
Conclusion
In a lending environment fraught with volatility and tightening bank appetites, this lender’s adaptive and responsive approach is a strategic asset for real estate operators in need of speed, certainty, and leverage. Their ability to now structure checks over the $30MM mark significantly expands their reach—positioning them as a key counterparty for sponsors executing on institutional size value-add and opportunistic plays in multifamily, industrial, and mixed-use real estate.
If this capital source may be of interest, book a call to discuss a potential capital arrangement.
| Capital Types | Senior Bridge Debt |
| Geography | Nationwide |
| Asset Classes | Multifamily, condos, mixed-use, retail, industrial/warehouse, hospitality |
| Construction | Light to heavy value-add; construction completion; no ground-up |
| Sponsorship | Experienced operators with a demonstrated track record |
| Loan to Cost / Loan to Value | Up to 85% LTC for multifamily **subject to debt yield |
| Loan Pricing | 1-month SOFR + 300 – 425 |
| Recourse | Most loans are non-recourse. There are carry guarantees. Capex completion guarantees. Generally there is a range of options, and this lender is creative in determining a reasonable solution. |
| Check Size | $30MM-$75MM |
| Underwriting Requirements | Ability to underwrite stabilized debt yield < 8% on select MF; max LTC 85% |
| Collateral Requirements | First Mortgage / UCC Lien |
| Deposits | Market standard deposit required upon signing of term sheet to fund appraisal, environmental, title, legal. Deposits are subject to deal size. |
| Term | 12–60 Months with extension options |
| Fees | 1% origination, exit fees vary by structure |
| Closing Timeframe | 60-90 days subject to market and deal profile |
If this capital source may be of interest, book a call to discuss a potential capital arrangement.
Read our last Capital Spotlight: “Institutional-Scale Private Credit Fund Structuring Flexible Bridge Facilities”