Commercial Real Estate Bridge Loan

Delivering customized bridge and permanent loan solutions for Commercial Real Estate 

What is a Bridge Loan in Commercial Real Estate?

Bridge Loans for Office, Retail, Mixed Use, Self-Storage, Warehouse, Light Industrial, Seniors Housing and Healthcare Real Estate.

What is a bridge loan in commercial real estate? A commercial real estate bridge loan provides a short-term or interim financing solution. It helps bridge the gap for a short period of time until the sale or refinancing can be obtained for commercial properties. That timeframe can range from a couple of months to a couple of years, though typically maxes out at three years.

Also known as commercial mortgage bridge loans, these loan types are often used for the purchase, rehabilitation, and stabilization of commercial real estate properties including seniors housing, mixed-use, self-storage, warehouse, light industrial, healthcare real estate, and office. Bridge loans can be used when traditional financing (banks or agencies) is not a viable option, due to time constraints or other criteria that may make the borrower fall outside traditional lending parameters.

Bridge loans use a collateral-based lending approach, placing the greatest emphasis and weight on the cash flow and collateral value of the real property. In contrast, traditional finance lenders will place the greatest emphasis on credit history and other factors. Commercial real estate bridge loans offer a fast and flexible alternative to traditional capital. Banks and agency lenders typically take up to 120 days to close a loan, whereas commercial bridge loans typically close faster. Borrowers across sectors looking to finance value-add or opportunistic acquisitions in commercial real estate, or refinance a commercial real estate property, gain a competitive advantage by leveraging the flexibility and speed of a commercial bridge loan.

Utilizing a bridge loan as a strategic or specialized tool can benefit a variety of circumstances, especially when a borrower or investor is looking to acquire commercial real estate, refinance an existing property, or make improvements to refresh and reposition the building. When traditional capital is increasingly hard to come by, borrowers need an efficient and timely solution to continue to push business objectives forward.

A bridge loan isn’t the answer to every scenario, but neither is traditional bank financing. Short-term commercial real estate bridge loans are a viable alternative when time is of the essence, and you need execution certainty paired with fast, flexible capital tailored to your needs.

Since 2008, Wilshire Finance Partners has specialized in commercial real estate bridge loan financing with transactions ranging from $1 million to $10 million. Read more about our commercial real estate loan programs below and contact us for a custom loan quote.

Bridge Financing Structure Types

Bridge lending is short term or interim financing that is generally used by a borrower until they secure permanent financing or sell the underlying real estate.

Bridge loans may be in a first lien or subordinate lien position. 

Unitranche or A/B Note structure is a form of bridge lending that uses a single loan agreement, a single promissory note, and a single deed of trust or mortgage, and the loan is contractually bifurcated or split using an Agreement Among Lenders or an Intercreditor Agreement creating a senior piece (the “Senior Tranche” or “A Note”) and a subordinate piece (the “Subordinate Tranche” or “B Note”).  Under this structure, there is a single lien against the collateral and the borrower has a single payment obligation.  

Mezzanine debt is a type of subordinated bridge financing used to increase leverage in a real estate transaction. This type of debt generally fits between equity and real estate secured debt in the capital stack.  It has priority of repayment over equity but is subordinate to the real estate secured debt.  The primary benefit to the borrower using mezzanine debt is the ability to increase their leveraged returns.

Participating loans are structured as debt with equity-like economic attributes.  Participating loans may be secured in first lien position; however, participating loans are more frequently a type of subordinated financing used to increase leverage in a real estate transaction. When used as subordinated financing, this type of debt generally fits between equity and senior real estate secured debt in the capital stack. The primary benefit to the borrower using participating loans is the ability to increase their leveraged returns at a lower cost than preferred or common equity. 

Agency Finacing Structure Types

Eligible Properties: Commercial Real Estate

  • Office
  • Retail
  • Industrial 
  • Self-Storage
  • Mixed Use

Loan Amount / Loan-To-Value: Up to 75% for Purchase / 70% on Refi

Rate Structure: 250-350 bps over index

Term: 5, 7, 10 yr. fixed / 20 yr. fix to float also available

Amortization: 25-30 yrs. and IO also available

Recourse: Non-recourse with standard exceptions, including for fraud and misrepresentation.

Prepayment Penalty / Lockout: Step down: 5,4,3,2,1

Eligible Properties: Commercial Real Estate

  • Office
  • Retail
  • Industrial 
  • Self-Storage
  • Mixed Use

Non-recourse, assumable fixed rate financing for the acquisition or refinance of stabilized  retail, office, industrial, and self storage properties

$1,000,000 to $10,000,000  

5-10 year term; interest only periods up to full term are available

Loan to Value Maximum
75% of appraised value or purchase price constrained by Minimum Debt Yield

Coverage Minimum
1.25x DSCR

Minimum Debt Yield
7% for multifamily; 8.5% for office, retail, industrial, and self-storage; 10.5% for hotels

Minimum Occupancy
85% (physical) 80% (economic)

Domestic single asset borrowing entity is required. Foreign sponsors may be financeable

Interest Rate
Risk-based pricing, varying with Debt Yield, amortization, LTV, DSCR, market and sponsor

Prepayment Terms
Defeasance with a lockout period of 24 months from securitization. Yield maintenance may be used in certain circumstances

Third Party Reports
MAI Appraisal, Property Condition Report and Environmental Phase I Assessment are required; Seismic Reports are required for properties in Seismic Zones 3 and 4

Frequently Asked Questions

Wilshire offers bridge and permanent loan solutions for the purchase and refinance of Commercial Real Estate.

Yes, Wilshire offers customized bridge and permanent financing for Commercial Real Estate.

Yes, Wilshire works directly with all intermediates and ensures broker protection. 

Wilshire can close a loan in 15 to 45 days. 

Yes, Wilshire is a direct lender. The WFP Income Fund, LLC and The WFP Opportunity Fund, LLC are real estate debt funds and combined are the capital engine driving Wilshire’s bridge loan program.

Formed in 2008, Wilshire Finance Partners is a real estate debt fund manager that makes bridge loans secured by multifamily, commercial real estate, seniors housing facilities, and medical office buildings nationwide. Wilshire combines an entrepreneurial approach, institutional sophistication, and discretionary capital inside a boutique environment to deliver outstanding service to our origination partners and affiliates.


Real estate debt funds with discretionary capital to lend.


Experienced professionals representing various disciplines in real estate, banking and investments.


The team has funded and managed over $2 billion in commercial real estate loans.

The main benefit of bridge debt financing is flexibility. It provides borrowers with short-term capital to meet any current expense obligations, quickly close on properties, complete renovations, or find new tenants for the building.

When there is a gap in timing or financing. Commercial bridge loans are short-term real estate loans for commercial property such as retail, office buildings, mixed use, and multifamily property including apartments and other multi-unit property. Wilshire Finance Partners is commercial bridge loan lender providing fast and flexible funding that enables a property owner to acquire a property or gives them time to obtain long-term financing from a conventional lender.

Commercial Mortgage Quick Reference Guide

In commercial real estate, the equity multiple is defined as the total cash distributions received from an investment, divided by the total equity invested. Essentially, it's how much money an investor could make on their initial investment.

The loan-to-value (LTV) ratio is an assessment of lending risk that financial institutions and other lenders examine before approving a mortgage. Typically, loan assessments with high LTV ratios are considered higher risk loans, often accompanied by a higher interest rate.

Loan-to-cost (LTC) compares the financing amount of a commercial real estate project to its cost. LTC is calculated as the loan amount divided by the construction cost. Meanwhile, loan-to-value (LTV) compares the loan amount to the expected market value of the completed project.

(CapEx) are funds used by a company to acquire, upgrade, and maintain physical assets such as property, plants, buildings, technology, or equipment. CapEx is often used to undertake new projects or investments by a company.

The combined loan-to-value (CLTV) ratio is the ratio of all secured loans on a property to the value of a property. Lenders use the CLTV ratio to determine a prospective buyer's risk of default when more than one loan is used.

CMBS stands for commercial mortgage backed security. In the case of commercial real estate, it refers to the loan being pooled with other loans and securitized, to be sold off to investors for a return.  Hundreds to thousands of similar loans, varying in size, rate and collateral (property type) are bunded together for a blended rate of return. Investors may buy shares of these bundled mortgages.

CMBS loans, also known as Conduit Loans, are a popular source of capital for commercial real estate investors. Rates are competitive and are generally non-recourse, with a fixed term of ten years, though often have prepayment penalties and provisions to protect the guaranteed yield to investors.

A credit tenant lease (CTL) is a long-term lease agreement made between a property owner and a tenant with extremely good credit, typically a major corporation. Credit tenant leases are the basis for credit tenant lease (CTL) loans, which have some of the lowest default rates in the commercial finance industry.

Debt Coverage Ratio(DCR), also known as Debt Service Coverage Ratio (DSCR), is a metric that looks at a property’s income compared to its debt obligations.

The DCR/DSCR formula is Net Operating Income (NOI)/Debt Obligations.

Debt yield is simply a property's NOI as a percentage of the total loan amount (debt yield = property NOI/loan amount).

The gross rent multiplier (GRM) is a screening metric used by investors to compare rental property opportunities within a market. The GRM functions as the ratio of the property's market value over its annual gross rental income.

GPR is the maximum amount of rent money an owner or investor can expect to make from a property during a specific time period. Unlike a rent roll, which compiles all current rents from a property, gross potential rent assumes 100% occupancy.

Gross leasable area, or GLA, is the area in a commercial property designed for the exclusive use of a tenant. GLA typically includes mezzanines, basements, or upper floors, but not shared areas, such as public bathrooms or maintenance areas.

Non-recourse finance is a type of commercial lending that entitles the lender to repayment only from the profits of the funded project and not from any other assets of the borrower. Such loans are generally secured by collateral.

A recourse loan is a loan where the borrower or guarantors are personally liable for repaying any outstanding balance on the loan, in addition to the collateral itself.

A tenant improvement (TI) is an improvement that a landlord/property owner makes to a property to suit the needs of a new tenant. A leasing commission (LC) is a percentage-based commission that a leasing agent receives when they successfully close a deal between a landlord and a tenant.

The term capital at risk refers to the amount of capital set aside to cover risks. Capital at risk is used as a buffer by insurance companies in excess of premiums earned from underwriting policies.

Sponsor Contribution means the contribution by the Sponsor in cash directly or indirectly to Buyer in the form of common equity or preferred equity.

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Wilshire Finance Partners, Inc.
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Irvine, CA 92618

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Loans: The information contained on this website and the related communications are directed to real estate professionals only.  The information contained on this website and the related communications are not a loan approval, agreement or commitment to lend. The delivery or circulation of any attached documents is for discussion purposes only and Wilshire Finance Partners, Inc. may make substantial and material revisions to the same.  Rates and terms are subject to change without notice.  Loans made by Wilshire Finance Partners, Inc. California Department of Real Estate Broker License number 01523207 and California Department of Financial Protection and Innovation, Finance Lenders License number 603K729; WFP Income Fund, LLC, California Department of Financial Protection and Innovation, Finance Lenders License number 603K726; WFP Opportunity Fund, LLC California Department of Financial Protection and Innovation, Finance Lenders License number 603K725; or WFP Income Fund REIT, LLC, California Department of Financial Protection and Innovation Finance License number 60DBO-99184. •Equal Opportunity Housing Lender•

Investments: The information contained on this website and the related communications are not an offer to sell or the solicitation of offers to purchase the securities of the WFP Income Fund, LLC, the WFP Income Fund REIT, LLC, the WFP Opportunity Fund, LLC, loan or trust deed investments, participations or other securities offered by or through Wilshire Finance Partners, Inc. (individually and collectively, the “Securities”).  The purpose of this website and the related communications is to provide an overview of the respective Securities and their private placement. Persons interested in learning about the Securities and their private placement will be provided with the respective Private Placement Memorandum (inclusive of exhibits thereto and any supplements, the “Memorandum”), which provides a description of the Securities, the terms of their private placement, a discussion of risk factors, a copy of the limited liability company operating agreement for the respective fund (as applicable), a subscription agreement and other information related to the Securities.

This website and the related communications contain certain forward-looking statements regarding the Securities and the investment objectives and strategies of each of the Funds. The forward-looking statements are based on current expectations that involve numerous risks and uncertainties which are difficult or impossible to predict accurately and many of which are beyond the control of Wilshire, as the manager of the Funds. Although Wilshire believes that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate and, therefore, there can be no assurance that the forward-looking statements will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements, the inclusion of such information should not be regarded as a representation by Wilshire, any placement agent, or any other person, that the objectives and strategies of the respective Securities will be achieved.

Investments in the Securities may only be made solely by accredited investors (which for natural persons, are investors who meet certain minimum annual income or net worth threshold), who are provided with the Memorandum and who complete, execute and deliver the subscription documents included therein, and otherwise comply with the requirements contained therein.  Each of the Securities is being offered in reliance on an exemption from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”) and are not required to comply with specific disclosure requirements that apply to registration under the Securities Act. Neither the Securities Exchange Commission nor any other state securities commission or agency has passed upon the merits of or given its approval to the Securities, the terms of the offering, or the accuracy or completeness of any offering materials. Each of the Securities is subject to legal restrictions on transfer and resale and investors should not assume they will be able to resell the Securities. Past performance is not indicative of future results. Investing in any of the Securities, including the Funds, involves substantial risk, including loss of investment, and is not suitable for all investors.

To the extent there is any inconsistency between the information provided in this website. The related communications and the Memorandum, the information contained in the Memorandum shall control.

Other Notices: Information provided by Wilshire Finance Partners, Inc., its affiliates and their respective directors, managers, officers, employees and agents is not to be interpreted as legal, tax or accounting advice.  Wilshire Finance Partners, Inc. is a debt collector and is required by law to inform you that this communication may be an attempt to collect a debt and any information obtained will be used for that purpose.  Wilshire Finance Partners®, Proven Professional Performance®, Stable Income & Principal Protection®, and The Alternative Solution® are registered trademarks of Wilshire Finance Partners, Inc. © 2021 Wilshire Finance Partners, Inc.  All rights reserved.


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