Savvy San Diego investors have shifted their focus to multi-tenant retail centers, and they’re using bridge loans for retail properties to do so.
Many of these properties are underutilized, overdue for upgrades, and ripe for repositioning into high-performing retail assets.
However, these attractive investment opportunities come with challenges, including vacancy, deferred maintenance, and outdated tenant mixes. The key is moving quickly and having the right financing in place.
In this article, we’ll break down why San Diego investors are turning to bridge loans for retail properties, how they work, and why private lenders like Marquee Funding Group are the go-to solution when speed and flexibility are the priorities.
Let’s Get Your Loan Started
San Diego’s retail market: stabilizing, but still full of opportunity
San Diego’s retail sector, like many across the U.S., experienced significant disruption during the pandemic.
But after several years of disruption, the signs of recovery are clear.
Here are the biggest trends impacting San Diego’s retail market.
Vacancy rates are stabilizing
Areas like Downtown, Mission Valley, and coastal communities continue to attract steady tenant demand from retailers and service-based businesses.
Tenant mix is in flux
Legacy tenants are moving out and new concepts are moving in.
Investors are working to curate the right mix of tenants to increase foot traffic and long-term rent growth.
There’s a limited inventory of quality strip centers
The demand is strong for well-located, street-facing retail properties, but new development is scarce thanks to land constraints and rising construction costs.
The lack of supply makes value-add retail acquisitions an attractive path for growth.
Challenges in multi-tenant retail investing in San Diego
The most promising path to growth in the San Diego retail market doesn’t come without its challenges.
The following types of issues deter traditional lenders but open the door to value-driven investors who have the right capital and strategy.
Partial vacancy
Many older strip malls and shopping centers are only partially leased, which signals potential and risk.
Where banks see risk, investors see opportunity—specifically, the chance to lease vacant space to higher-performing tenants.
Deferred maintenance
Cracked parking lots, old roofs, ADA issues, or outdated facades can scare off institutional lenders.
But these are fixable problems, and investors with the right financing can add serious value.
Below-market rents
Many legacy tenants are locked into below-market lease rates.
While this may seem detrimental to your NOI, buyers who are flexible and can wait out lease expirations or offer tenant improvements in exchange for higher rents will be rewarded.
Outdated tenant mix
Many retail centers aren’t keeping up with the times, and investors are encountering tenants that no longer resonate with neighborhood demographics.
This allows investors to rebuild a tenant mix that includes healthcare, food and beverage, fitness, or other categories that meet neighborhood demand.
What are bridge loans for retail properties?
When a retail deal has real potential but needs improvement, investors turn to bridge loans: short-term, flexible commercial financing that allows them to move quickly, make necessary adjustments, and set the stage for long-term value.
How do bridge loans for retail properties work?
Let’s review bridge loans’ main features, uses, and benefits for multi-tenant retail properties.
- Close quickly in competitive markets: Bridge loans can fund in days, helping investors move quickly on off-market or distressed opportunities, far quicker than bank loans.
- Fund renovations and lease-up costs: These loans can include capital for repairs, upgrades, and tenant improvements—perfect for repositioning underperforming centers.
- Support during the lease-up phase: With flexible, interest-only terms for 12 to 24 months, bridge loans give you time to stabilize occupancy and improve NOI without being penalized for temporary cash flow dips.
- Refinance once the asset is stabilized: Once leased and upgraded, investors can refinance into permanent debt with stronger financials and better terms.
Bridge loans aren’t just a fallback—they’re often the reason these value-add deals become viable.
Why speed matters in San Diego’s commercial real estate market
In San Diego, retail real estate doesn’t sit on the market for long.
Here’s why speed is so important in the San Diego market:
- Deals move fast—often before hitting the market
- Sellers value certainty over top-dollar offers
- Distressed and value-add assets require fast action
- Brokers trust buyers who consistently deliver
- Institutional timelines don’t match market realities
In this market, “serious buyers” are the ones who come ready to close quickly and confidently.
Marquee’s role in financing complex retail deals
Marquee Funding Group specializes in funding complex, transitional, and full-of-potential deals that banks and institutional lenders typically pass on.
These are projects that may not meet conventional lender requirements, but have real upside for strategic investors.
Here’s how we help investors get deals done.
We fund transitional assets
Partially leased centers, deferred maintenance, and below-market rents aren’t flaws, they’re opportunities.
Marquee looks at the asset’s future potential, not just its current rent roll.
We close fast on time-sensitive deals
When deals are shared quietly or come with a short fuse, you need capital that moves fast.
With an in-house team and no red tape, we close deals in as little as seven days.
We structure loans around your business plan
We don’t force deals into templates—we tailor loan terms to match your business plan.
We bring local expertise
Based in Southern California, we understand San Diego’s submarkets, tenant trends, and zoning dynamics, which helps us underwrite faster and smarter.
We’re more than just capital
Our investors view us as more than a lender—we’re a strategic partner invested in your success.
Bridge loans for retail properties FAQ
A retail property bridge loan is a short-term, interest-only loan (6–24 months) that lets you close fast on underperforming or value-add retail centers—and fund renovations and lease-up before you refinance.
Investors with a business plan, exit strategy, and equity of 15–30% of the purchase price can likely qualify for a bridge loan. You don’t need perfect credit—our common-sense underwriting backs the deal’s future potential, not just today’s rent roll.
With the in-house team at Marquee Funding Group and no red tape, we often close in 7–14 days so that you can win off-market or time-sensitive opportunities in Downtown, Mission Valley, coastal corridors, and beyond.
You choose the mix of:
- Purchase down payment
- Deferred-maintenance repairs (roof, parking, ADA)
- Tenant improvements and incentives
- Holding costs during stabilization (taxes, insurance)
Bridge loans: a smarter way to invest in San Diego retail properties
San Diego’s retail market rewards investors who act quickly and think strategically.
Bridge loans offer the flexibility and funding to unlock value in underperforming properties, stabilize income, and position assets for long-term success.
Marquee Funding Group offers both the capital and collaboration to help you act fast and execute with confidence.