New York Commercial Bridge Loans: Property and Exit Readiness

Educational information only, not legal, tax or financial advice. Examples and calculations may contain errors; verify them with your own advisors. Advertised starting rates are annual interest, not APR; one point equals 1% of the loan amount. Other fees and costs may apply, and all financing is subject to underwriting.

A bridge should solve a temporary problem

A New York commercial bridge loan can cover an acquisition, a maturing loan or a property transition before permanent financing is ready. Start by naming the gap: vacant commercial space, necessary repairs or income that is not yet stabilized. Then identify the milestone that enables repayment. If the plan cannot support a sale or refinance even after that milestone, short-term debt may only postpone the problem. Crosby considers investment and commercial real estate, not consumer loans or owner-occupied homes.

Distinguish New York City from the rest of the state

Identify the municipality and property address rather than describing the deal only as 'New York.' NYC's ZoLa tool helps research zoning and related site information; it is not a statewide resource or a confirmation that a proposed project is permitted. For sites outside NYC, use the relevant local planning and building authorities. Ask qualified advisors to verify permitted use, building records, required approvals and any restrictions before including a conversion or expansion in the loan's repayment plan.

Build a rent roll that explains collections

Provide unit or tenant detail, contracted rent, actual collections, vacancy, lease expirations and concessions. Separate residential and commercial income in a mixed-use building. Where residential units are involved, have counsel confirm any applicable rent-regulation or occupancy restrictions; do not assume all rents can immediately be raised to market. A rent roll and trailing expenses should show what the property earns today, while a separate projection explains the business plan and its assumptions.

Connect repairs and lease events to the timeline

List renovation scope, contractor estimates, approvals, tenant improvements and known lease expirations. An expiring retail lease can affect both income during the loan and the refinance value. Allow time and cash for work, marketing and occupancy rather than assuming a signed lease immediately becomes collected income. If you are relying on a new tenant, explain any free-rent period, build-out obligations and conditions that remain before rent starts.

Research flood exposure and operating costs

NYC publishes flood-risk resources, and its Zoning Resolution includes special regulations applying in flood zones. Use these as starting points, then obtain property-specific guidance from your design, insurance and legal professionals. Budget taxes, insurance, utilities, maintenance and capital work using available records and quotes. A loan projection based on an old insurance bill or an incomplete repair budget can overstate the cash available to carry the bridge and refinance it.

Test the permanent financing, not only the property value

For a refinance exit, ask the prospective takeout lender about income, occupancy, property condition and documentation requirements. Calculate whether its expected proceeds repay the bridge plus fees, and what happens if they do not. A sale exit should account for transaction costs and delays. Crosby considers $100,000–$50 million requests, with leverage up to 65%, annual interest from 9% and origination from 1 point, subject to underwriting. Starting terms are not guaranteed or APR; additional costs may apply.

Prepare a review package

Send the address, amount requested, purchase or payoff figures, valuation support, rent roll, operating history, renovation plan and proposed exit. Flag unresolved title, use or tenant issues early instead of discovering them near closing. Crosby uses licensed co-lenders in states where a lending license is required, and the actual lender is named in the loan documents. Availability and final structure depend on the property, purpose and underwriting; this guide does not establish a property's legal eligibility.

Sources and property research

General information, not legal, tax or engineering advice. Confirm property-specific requirements with qualified advisors and the relevant authorities.

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