Businesses and investors need timely, flexible CRE financing from redevelopment to ground-up construction to capitalize on fast-moving opportunities.
But—there’s a problem. When the value of your project is all in the future, most traditional lenders are likely to pass on the chance to fund your vision. They often struggle to underwrite future value that hasn’t yet materialized. The value must be available here and now, or they’re not interested.
That’s where construction bridge loans come into play. These short-term loans have become an essential financing option for transitional or value-add projects.
Before exploring the advantages of this financing tool, it’s helpful to understand how construction bridge loans function and why they are particularly suited to the demands of commercial real estate development.
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What is a construction bridge loan?
A construction bridge loan is a short-term loan that helps fill the gap between immediate financing needs and a long-term capital event, such as a sale or refinance.
In CRE, these loans are often used to:
- Acquire and renovate outdated properties
- Complete ground-up construction
- Stabilize multifamily or mixed-use buildings
- Redevelop underutilized or vacant commercial assets
Bridge loans typically have short terms of 12 to 24 months, with fixed interest rates and payment structures designed to cover interest only during the loan period.
Because these loans are asset-based, approval depends more on the strength of the asset and the viability of the project than on current income alone.
Why construction bridge loans are a strong choice for CRE financing
Marquee Funding Group’s construction bridge loans offer several advantages, making them a preferred option for investors and developers.
Speed
Traditional CRE loans can take months to close. For time-sensitive deals, that delay can mean losing the opportunity. Marquee Funding Group, however, can close in days or weeks, thanks to in-house underwriting and a direct lending model.
Flexibility
Banks often rely on historical income to underwrite loans. But the game changes when you can evaluate future value, project potential, and your detailed business plan.
This change in perspective makes construction bridge loans well-suited for transitional assets or non-cash-flowing properties.
Higher leverage
Marquee Funding Group’s construction bridge loan offers high leverage at various stages:
- Up to 75% loan-to-value (LTV) at closing
- Up to 75% loan-to-cost (LTC), covering both hard and soft construction costs
- Up to 70% loan-to-after-repair value (LTARV), based on completed value
Marquee’s loan structure helps borrowers maintain liquidity while minimizing the equity required upfront.
Cash flow preservation
Interest-only payments on drawn funds help borrowers manage liquidity during construction. And with no amortization required during the loan term, cash can stay focused on project execution and value creation.
Ideal for transitional properties
Bridge loans offer essential flexibility for transitional properties that are not yet stabilized and require additional time or capital before becoming eligible for permanent financing.
This financing allows time for stabilization before securing permanent financing or selling the property.
How Marquee’s construction bridge loan stands out
Not all bridge loans are alike. Marquee’s product is tailored for CRE borrowers seeking a lender with a deep understanding of construction finance and the complexities of transitional assets.
Core features include:
- Custom loan amounts available for mid-sized to large-scale CRE developments
- 12- to 24-month terms, with a 6-month minimum interest period
- Fixed-rate, interest-only payments (rates start at 9.5% for multifamily)
- Non-recourse options available (with adjusted leverage)
- 3rd-party fund control via Trinity for transparent construction draws
- Lending across retail, office, industrial, mixed-use, and multifamily asset classes
Whether you’re building new or repositioning an existing property, Marquee provides the capital and structure to complete the deal.
Ideal use cases for construction bridge loans in CRE financing
Bridge loans support a broad range of CRE strategies and are used in many situations that require flexibility and speed.
Redevelopment projects
Modernizing aging office buildings can create opportunities for new commercial uses by aligning the space with current market demands and tenant expectations.
Ground-up construction
Starting multifamily or retail developments in emerging markets with strong demand.
Adaptive reuse
Converting underutilized warehouses into creative office or light industrial properties, or repurposing hotels into residential housing.
Lease-up financing
Covering costs during the stabilization period of a new development before it qualifies for permanent financing.
Distressed asset acquisition
Acquiring vacant or underperforming assets that banks won’t finance, then improving and repositioning them for sale or refinance.
Each scenario would require forward-looking underwriting, considering future value and aligning with the investor’s overall strategy.
Key considerations for borrowers
While construction bridge loans offer speed and flexibility, they require thoughtful planning.
Before applying, borrowers should:
- Estimate total project costs, including permits, soft costs, and contingencies
- Define a clear scope of work with timelines and budget milestones
- Prepare an exit strategy—refinance, sale, or other liquidity event
- Understand the loan’s structure, including fund control and disbursement protocols
- Review prepayment terms and confirm alignment with the project’s expected timeline
The long-term value of short-term capital
Construction bridge loans are not just temporary financing solutions.
When structured effectively, construction bridge loans support timely execution and provide the financial flexibility needed to enhance property value and prepare the asset for long-term performance.
Bridge loans help investors:
- Secure time-sensitive deals
- Unlock value in underutilized assets
- Maximize returns with minimal upfront equity
- Bridge to long-term financing or asset disposition
By creating value in the short term, bridge loans position developers for long-term success.
Private lending options for construction bridge loans
As interest rates remain elevated and banks tighten credit standards, private lenders are becoming more prominent in CRE financing.
Hard money bridge loans offer a solution for borrowers navigating uncertain market conditions, especially when adaptability and deal structure matter more than traditional credit metrics.
Marquee Funding Group: A smart solution for today’s CRE financing
In fast-paced CRE markets, traditional lending can’t always keep up. Construction bridge loans fill that gap with flexibility, speed, and tailored underwriting.
Marquee Funding Group’s construction bridge loan is designed for professionals who move quickly and think strategically.
With competitive terms and a common-sense lending approach, Marquee helps borrowers complete projects with confidence.Ready to move forward on a time-sensitive project?
Submit your loan scenario to Marquee Funding Group and discover how our bridge loan solutions can bring your vision to life.