Bridge Lending Solutions: Efficient Financing for Savvy Sponsors

Sponsors today are increasingly choosing bridge lending solutions to capitalize on opportunities during the lease-up and stabilization phases, with multifamily completions projected to remain elevated through 2030. Bridge loans, when paired with a lender equipped to support your investment needs from construction through permanent financing, can effectively position borrowers for long-term success.

When Do Bridge Lending Solutions Make the Most Sense?

Bridge financing is ideal for experienced multifamily and single-family rental (SFR) borrowers with a proven track record. It can provide quick and efficient short-term financing during the planning of a long-term strategy.

Bridge loans are ideal for:

• Property acquisition with time constraints
• Properties with value-add or rehabilitation projects
• Newly acquired properties in the lease-up phase that need to improve cash flow
• Refinancing an existing loan when permanent financing isn’t yet available

Typically fully capitalized at closing, Bridge loans provide investors with immediate access to funds for acquisition and project execution. A well-structured Bridge enables investors to act quickly while maintaining underwriting discipline and asset quality.

Bridge Loans Deliver Fast, Flexible Capital for Sponsors

Bridge lending solutions have several advantages that are attractive to multifamily and SFR investors:

• Speed and certainty of execution: Sponsors can close quickly on time-sensitive deals
• Flexible underwriting: Lenders can tailor terms to the unique needs of the asset and borrower without sacrificing proper due diligence
• Interest-only payments: Typically offered to preserve cash during the stabilization period
• No prepayment penalties: Investors can refinance or exit when the time is right
• Market timing: Capitalize on rapidly changing dynamics in individual market and sub-market profiles

SFR Investors Also Benefit from Bridge Loan Flexibility

SFR and build-to-rent (BTR) properties are often built or acquired quickly — especially in bulk or portfolio strategies. Bridge loans provide the interim capital needed to lease up properties and stabilize cash flow without sacrificing construction standards or long-term value.

Unlike multifamily, SFR sponsors frequently acquire homes over time. Bridge financing enables them to efficiently bundle multiple properties into a single portfolio, enhancing their ability to secure long-term financing.

What Type of Bridge Financing is Available?

Arbor’s Bridge loan program offers customizable short-term financing solutions tailored to the needs of multifamily and SFR investors:

• Loan amounts from $10 million to $100 million (starting at $5 million for SFR)
• Flexible terms of one to three years
• White-glove support from experienced originators, underwriters, and servicing professionals

Arbor’s Seamless Bridge Lending Platform

Arbor’s ability to provide construction, bridge, and permanent financing under one roof gives our borrowers a seamless experience. With our diverse loan product suite, Arbor’s tenured team support clients throughout the entire loan lifecycle to help them execute their strategies with confidence.

Partner with Our Active Team to Help Bridge the Gap

Arbor’s Bridge loans are more than a short-term solution. They are a strategic investment, which helps sponsors maximize asset value, improve cash flow, and position properties for the best long-term financing options.

Arbor’s long track record of consistent performance demonstrates our team’s strength in structuring customized investment solutions.

Ready to partner with an award-winning lender on a Bridge loan? Get in touch to explore how Arbor’s programs can help you reach your investment goals.

Interested in the multifamily real estate investment market? Contact Arbor today to learn about our array of multifamily and single-family rental financing options and view our other market research and multifamily posts in our research section.