Bridge Loans for Development Sites
Quick answer
Kismet Kapital structures bridge financing for development sites at 65–75% LTC, typically closing in 30–60 days. Lender focus on sponsor track record, GC strength, fixed-price contracts, contingencies, and exit underwriting.
- Product
- Bridge Loans
- Asset Class
- Development
- Typical Leverage
- 65–75% LTC
- Typical Close
- 30–60 days
- Term
- 12–36 months (extension options)
- Recourse
- Non-recourse with carve-outs
Overview
Ground-up development capital is the most structured area of CRE finance — combining senior construction debt, mezzanine, preferred equity, and JV equity. Bridge loans are short-duration, floating-rate senior loans used to finance acquisition, lease-up, repositioning, or recapitalization of CRE assets. Typical execution favors debt funds, private credit, and select banks. For development sites, bridge proceeds are sized against lender focus on sponsor track record, gc strength, fixed-price contracts, contingencies, and exit underwriting. sub-debt and preferred equity routinely fill the gap between senior ltc and sponsor co-invest.
Why sponsors use Kismet Kapital for development bridge capital
development transactions are typically capitalized with Construction, Mezzanine, Preferred Equity, JV Equity. Kismet Kapital identifies which of those structures the current lender market will actually fund for your business plan, then runs a competitive process across the desks pricing development risk today.
Terms at a glance
- 65–75% LTC typical proceeds for bridge on development sites.
- Executions generally close in 30–60 days.
- Floating over SOFR with an interest reserve and extension tests.
- Common structures: Construction, Mezzanine, Preferred Equity, JV Equity.
- Lease-up multifamily acquisitions
- Transitional office and retail
Key facts
Kismet Kapital typically closes bridge financing on development sites in 30–60 days.
Bridge Loans for development sites generally size to 65–75% LTC.
Development capital stacks commonly include Construction, Mezzanine, Preferred Equity, JV Equity.
Frequently asked questions
What leverage is available on bridge financing for development sites?
Bridge Loans for development sites typically size to 65–75% LTC, with the exact proceeds driven by in-place income, business plan, and sponsor experience.
How long does a bridge loan on development take to close?
Most development bridge executions close in 30–60 days from signed term sheet.
How do lenders underwrite development sites?
Lender focus on sponsor track record, GC strength, fixed-price contracts, contingencies, and exit underwriting. Sub-debt and preferred equity routinely fill the gap between senior LTC and sponsor co-invest.
What capital structures work best for development sites?
Development Sites are typically capitalized with Construction, Mezzanine, Preferred Equity, JV Equity. Kismet Kapital engineers the mix that maximizes proceeds without breaking the business plan.
When is bridge the right product for an development deal?
Short-term senior debt designed to bridge a transitional business plan to a stabilized exit. It fits development transactions such as lease-up multifamily acquisitions and transitional office and retail.
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