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  • Writer's pictureDoug Tisdale

Tired of Waiting? Is Bridge Financing the Shortcut to Overcoming Financial Hurdles

In today's dynamic commercial real estate landscape, traditional perceptions are being reshaped, and new avenues for financing are emerging. One such opportunity lies in the bridge loan programs offered by life insurance companies.

Traditionally known for their conservative approach to capital, life insurance companies have expanded their horizons to include structured bridge loan programs. These programs feature fixed or floating rates, 2-3-year interest-only term, extension options, and flexible prepayment terms after 12-24 months.  With many regional and local banks vacating the market or requiring deposits of 10%-20% of the loan amount as a prerequisite to making the loan, life insurance companies have emerged as significant bridge lenders, positioning themselves as an alternative to private debt fund capital sources.

Key Benefits of Life Insurance Company Bridge Loans


Structure Flexibility: Standard bridge loan structures with interest only payments for transitional/value-add properties and pre-stabilized properties in lease-up including future funding for TI’s/LC’s/capex and interest reserves; non-recourse is typical, but limited recourse/full recourse may be required in certain cases.


Diverse Property Focus: While multifamily, industrial, self-storage, and retail properties are primary targets, office and hotels are considered case by case.


Reliable Execution: Life insurance companies act as balance sheet lenders, ensuring swift transactions without reliance on debt syndication. Their meticulous evaluation process instills confidence in meeting agreed terms.


Speedy Closures: With the ability to close loans in as little as 30 days, life insurance companies accommodate tight acquisition timelines or maturing construction debt.


Competitive Leverage: Offering up to 75% LTV/80% LTC, life insurance companies rival private debt funds directly on leverage and loan proceeds. In select cases, for high quality real estate in A+ markets, certain life insurance companies can offer stretch senior bridge loans that aren’t constrained by a 1.25x DSCR take-out that push leverage to as high as 75% of the stabilized value with a stabilized debt yield of 6.50%-7.00%.


Rate Options: Both fixed and floating-rate bridge loans are offered. Fixed rate bridge loans use Treasury indices to price all-in interest rates, with current pricing spreads ranging from 250-400 basis points over Treasuries. Floating rate bridge loans are based on the 1-month Term SOFR index, with pricing spreads ranging from 2.65%-5.00% depending on the deal profile. The lower end of the range is achievable for high quality assets and larger loan amounts. All-in bridge loan rates currently range from 7.00%-10.25% on an interest only basis, depending on the type of loan request (asset type, leverage, etc.).

In today's lending environment, the reliability and certainty of execution is critical. That's why, alongside life insurance companies, Gantry maintains robust relationships with various bridge capital sources, including banks and private debt funds, ensuring you access to optimal loan terms aligned with your objectives.

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