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.
When retail bridge financing makes sense
Retail bridge financing can help an investor acquire a storefront or shopping center, address a maturing loan or carry a property through lease-up. The business plan might involve repairing space, replacing an outgoing tenant or improving the tenant mix. Short-term financing does not eliminate leasing risk. The proposal should explain why a temporary loan is needed, what changes before maturity and how the property then supports a sale or permanent loan.
Read the leases behind the rent roll
Prepare a tenant-by-tenant summary of premises, lease dates, base rent, actual payments, deposits, arrears, renewal options and any termination rights. Include amendments and side agreements, not just the original lease. The NYC Small Business Services commercial lease guide is a useful introduction to lease provisions, but property-specific interpretation belongs with counsel. A headline occupancy percentage alone does not show whether tenants are paying, about to leave or receiving concessions.
Build a rollover calendar
List the leases that expire or reach an option date during the expected bridge period and the proposed refinance window. If one tenant supplies much of the income, model the effect of its departure. Ask what vacancy time, leasing commissions, repairs and replacement rent would do to cash flow. Distinguish a tenant's stated intention to renew from an executed renewal. A refinance plan should not depend entirely on a renewal that remains uncertain.
Reconcile reimbursements and real expenses
Separate base rent from recoveries for taxes, insurance and common-area maintenance. The lease determines which costs can be passed through and on what terms; do not assume every expense is reimbursable. Compare recorded reimbursements with actual collections and the property's operating bills. A vacancy may leave the owner carrying costs previously paid by a tenant. Show those costs explicitly in the bridge budget instead of treating gross scheduled rent as net operating income.
Budget the path from vacant space to paying tenant
For vacant units, gather a leasing plan, target tenant profile, comparable rents and contractor estimates. Include tenant improvements, leasing commissions, free rent, permits and any owner work promised in the lease. Check that the proposed use is permitted and physically practical. A signed lease may still require build-out or other conditions before occupancy and rent commence. Loan proceeds alone may not cover all these costs, so identify the sponsor's available cash.
Value and refinance assumptions must agree
Crosby considers retail within its business-purpose commercial lending scope, with loans from $100,000 to $50 million and advertised leverage up to 65%, subject to underwriting. Annual interest starts at 9% and origination at 1 point; starting pricing is not APR or a guaranteed quote and other costs can apply. Present existing income separately from projected stabilized income. Ask a prospective permanent lender which leases, collections and occupancy history it needs before relying on a refinance amount.
A concise retail submission checklist
Prepare the property address, price or current value, amount requested, rent roll, leases and amendments, operating statements, rollover calendar, improvement budget and exit plan. Explain the largest risk and the backup plan: additional equity, a smaller takeout loan or a sale at a conservative price. Crosby does not provide consumer or owner-occupied home loans. Loans in states requiring licensing are made by or with licensed co-lenders, with the actual lender identified in the documents.
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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