Fast-execution capital for acquisitions, operator transitions, and repositioning. Expert advisory to secure flexible bridge financing and navigate to permanent financing for your senior housing and care portfolio.
Strategic short-term capital designed for acquisitions and transitions that require speed and flexibility
Close in 30-60 days with streamlined underwriting and flexible documentation requirements
Purpose-built for acquisitions, transitions, and time-sensitive opportunities requiring quick capital
Interest-only payments, multiple exit strategies, and customizable terms to fit your business plan
Bridge to permanent financing (FHA, Agency, CMBS) while stabilizing operations post-acquisition
Strategic applications for bridge capital in senior housing acquisitions, transitions, and repositioning scenarios
Finance the purchase of skilled nursing facilities, assisted living, memory care, or independent living communities with quick closing timelines that meet seller requirements.
Fund management or ownership changes when existing financing prohibits assignment or requires prepayment. Provides capital runway to stabilize operations before permanent refinancing.
Bridge newly constructed or recently repositioned properties through lease-up period until occupancy and cash flow meet permanent financing requirements.
Provide interim financing when existing loans mature before permanent replacement debt can be secured, preventing default and preserving borrower's equity position.
Finance properties requiring operational improvements, light renovations, or rebranding that will increase NOI and support higher permanent loan proceeds.
Extract equity from stabilized assets to fund growth initiatives, debt repayment, or partner buyouts while maintaining operational control during transition period.
Understanding typical bridge financing terms and structures for senior housing transactions
$2M - $50M+
Flexible sizing based on property value and business plan
65% - 75%
Acquisition or as-stabilized value depending on structure
8% - 12%+
Floating or fixed, varies by risk profile and term
12 - 36 months
With extension options based on business plan milestones
10% - 12%+
Typically underwritten to trailing or pro forma NOI
Full or Partial
Non-recourse structures available for institutional sponsors
Important Considerations
Bridge financing is more expensive than permanent financing and requires a clear exit strategy. Borrowers should begin permanent financing efforts immediately after closing and build adequate contingency into timelines. Failed exits can result in default, foreclosure, or expensive loan extensions.
Key requirements lenders evaluate when underwriting bridge financing for senior housing transactions
Demonstrated senior housing operating track record
Lenders evaluate sponsor's successful management of similar properties, financial strength, and ability to execute business plan. First-time operators may require institutional partners or management agreements with experienced operators.
Trailing 12-month operating history or credible pro forma
For acquisitions, lenders underwrite seller's historical financials. For transitions or lease-ups, lenders evaluate realistic pro forma projections with appropriate market support and comparable data.
Clear path to permanent financing or asset sale
Lenders require defined exit strategy (refinance to FHA/Agency/CMBS, property sale, or sponsor equity injection) with realistic timeline and supporting analysis demonstrating feasibility.
Adequate reserves for debt service, capex, and operating shortfalls
Lenders typically require 6-12 months of debt service reserves plus property-level reserves for capital improvements, lease-up shortfalls, and working capital needs.
Acceptable physical condition with no major deferred maintenance
Properties must meet life-safety and operational standards. Major deferred maintenance, regulatory deficiencies, or capital needs may require additional equity, holdbacks, or reduced proceeds.
Active licenses, acceptable survey history, and regulatory standing
Facilities must maintain all required state licenses and Medicare/Medicaid certifications (if applicable). Recent survey deficiencies, immediate jeopardy findings, or payment suspensions create significant lending challenges.
Understanding when bridge financing is appropriate versus permanent financing options
| Feature | Bridge Financing | Permanent Financing |
|---|---|---|
| Closing Timeline | 30-60 days | 90-180 days |
| Loan Term | 12-36 months | 5-35 years |
| Interest Rate | 8-12%+ | 5-7% |
| Amortization | Interest-only | 25-35 year amortization |
| Documentation | Streamlined | Extensive |
| Property Condition | Flexible / As-is | Must meet program standards |
| Occupancy Requirement | Flexible / Pro forma | Stabilized (85%+ typically) |
| Best Use Case | Acquisitions, transitions, time-sensitive | Long-term hold, stabilized assets |
Navigate the bridge financing process from initial consultation through closing and exit execution
Initial Consultation & Deal Assessment
Evaluate acquisition opportunity, purchase timeline, property condition, operating performance, and sponsor's business plan. Determine bridge loan feasibility and optimal structure.
Lender Identification & Term Sheet
Approach specialized bridge lenders with senior housing expertise and appetite for your transaction profile. Negotiate term sheet with competitive pricing, flexibility, and realistic closing timeline.
Application & Due Diligence
Submit application with property financials, purchase agreement, sponsor financials, and business plan. Coordinate Phase I environmental, property condition assessment, and title review.
Underwriting & Credit Approval
Lender underwrites trailing NOI or pro forma, evaluates exit strategy feasibility, assesses sponsor strength, and determines final loan terms. Address lender questions and provide clarifications as needed.
Commitment & Closing Coordination
Execute loan commitment with deposit. Finalize loan documents, insurance requirements, property management agreements, and reserve escrows. Coordinate with transaction attorneys and closing agent.
Closing & Post-Closing
Fund loan at closing, pay seller proceeds, establish reserves, and implement business plan. Monitor property performance and begin permanent financing process well in advance of bridge maturity.
Let's discuss your acquisition opportunity and structure the optimal bridge financing solution to meet your timeline and business objectives.
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