Building a commercial property from the ground up requires more than plans and permits. You need financing that can accommodate the pace and complexity of real-world development.
Tackling a retail strip project? A mid-rise multifamily? Or maybe you’re creating a flex space near a freeway exit? Whatever your vision, a commercial construction loan can support every phase—from land acquisition to final certificate of occupancy.
Commercial construction loans aren’t cookie-cutter solutions. They’re tailored for developers and investors who need capital to cover land, design, materials, labor, and every permit in between.
However, not all lenders move at the speed of construction. Banks can be slow, adhere to narrow guidelines, and overlook the value of local experience. That’s where Marquee Funding Group’s commercial construction bridge loan changes the game.
In this guide, we’ll cover how these loans work, when to use them, and why Marquee’s program operates differently from the rest.
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What is a commercial construction loan?
Marquee Funding Group’s commercial new construction loan gives our clients short-term capital to fund their ground-up development projects.
Unlike long-term loans tied to rental income and building performance, this type of financing is based on the project’s future value.
New construction commercial loans can be used for:
- Buying or refinancing the land
- Pre-construction costs like architecture, permitting, legal
- Construction itself—materials, labor, site work
- Interest reserves and contingency buffers
A great bonus is that these loans are usually interest-only.
Terms fall between a year and three, and you don’t get all the money up front. Instead, funds are released in stages through a draw process tied to milestones on the job site.
Once construction wraps and the asset stabilizes, you can replace it with permanent financing—or sell it if that’s your plan.
When to use a commercial construction loan
These loans are beneficial in situations where timing, flexibility, or speculative risk make traditional financing unworkable.
Investors should consider a commercial new construction loan when:
- Developing in a high-growth area where timing matters and traditional lenders move too slowly
- Building a speculative project without pre-leased tenants, and banks aren’t willing to take the risk
- They’ve secured an entitled parcel and need capital to get construction started
- They have pre-leased or build-to-suit tenants, but need interim financing before locking in permanent funding
- Planning a phased or mixed-use development and need flexible capital to support each stage
What sets new construction CRE loans apart
Construction loans don’t operate like traditional mortgages or stabilized CRE loans.
They’re designed with features to support developers tackling high-cost projects on tight timelines, making them better suited for ground-up work:
- Short loan terms, typically between 12 and 36 months
- Those interest-only payments throughout the loan term can make a big difference
- Staged disbursements through a draw schedule tied to construction milestones
- Underwriting based on project metrics like loan-to-cost (LTC) and loan-to-after-repair value (LTARV)
- Third-party fund control to track progress and manage disbursements
- Flexible with exit strategy proposals, such as refinancing or selling the property upon completion
Marquee’s commercial construction bridge loan includes all of these core features and enhances these features with borrower-centric underwriting, faster closings, and a process grounded in real-world development needs.
Common challenges with traditional new construction loans
Working with conventional banks or institutional lenders can often be more of a roadblock than a resource for many developers.
Common issues include:
- Long approval timelines that delay construction starts and jeopardize deals
- Strict borrower requirements, like income verification, liquidity reserves, and low debt-to-income ratios
- Low leverage, with loan-to-cost (LTC) limits often capped at 60 to 65 percent
- Little flexibility for speculative or unconventional projects that don’t fit standard lending models
- Rigid underwriting that overlooks borrower experience and real market potential
Time-sensitive projects—the ones that don’t have time to check every box on a bank’s list—can stall with limitations like these before you even break ground.
Why Marquee’s construction bridge loan is ideal for new construction CRE
Marquee Funding Group designed its construction bridge loan to cut through the usual obstacles associated with ground-up development.
Built for experienced borrowers who need capital, it’s structured to move quickly and adapt to your deal’s specific requirements.
Features of Marquee’s commercial new construction bridge loan:
- Up to 75% loan-to-cost (LTC), covering land, soft costs, and hard construction expenses
- Up to 70% loan-to-after-repair value (LTARV), based on the appraised completed value
- Fixed-rate, interest-only terms from 12 to 24 months
- Rates starting at 9.75% for ground-up residential and 11.25% for multifamily construction
- Non-recourse options are available, depending on leverage and borrower profile
- Third-party fund control through Trinity for transparent, efficient draw management
- Fast underwriting and closing with none of the institutional red tape
Example use cases of Marquee’s new construction CRE loan
Marquee’s loan program is built for flexibility, making it a strong fit for a wide range of development projects.
Here are some common scenarios where new construction CRE financing can be a strategic advantage:
- Retail construction on a high-traffic commercial parcel with multiple anchor tenants
- Multifamily ground-up in urban infill areas where demand is on the rise
- Industrial or flex development near transit or logistics hubs
- Mixed-use projects that blend residential, office, and retail components
- Medical or dental offices in fast-growing suburban markets
Best preparations for a construction bridge loan
The smoother your package, the faster it closes.
Investors should apply for new construction bridge financing with the following:
- Full scope of work and budget
- Plans and permits, or the timeline to get them
- Proof of land control or ownership
- Appraisal showing value post-construction
- Track record and financials
- Exit plan—refi, sale, or lease-up
We know how to move quickly, but clear planning on your end speeds up everything.
Build with confidence using Marquee’s construction bridge loan
Construction doesn’t wait—and neither should your financing.
Marquee’s construction bridge loan is designed to keep your project moving with competitive terms, responsive service, and real-world expertise.
Submit your loan scenario with Marquee Funding Group today.
The foundation of your next CRE success starts here.