First National’s bridge loans are ideal for borrowers who have yet to secure standard financing or who need the time and flexibility to plot a better future for their industrial property assets.
Our bridge loan terms typically range from three months to three years, include floating interest rates and allow some form of early prepayment.
Borrowers choose this solution until standard financing is secured or while they contemplate a property sale, a change in ownership structure or enhance their tenant roster.
Additionally, a bridge loan can be used opportunistically to execute an operational strategy to enhance the value of the property. For industrial assets, short-term financing may be a strategic solution if many of the property’s leases are approaching maturity. This flexibility enables borrowers to negotiate new leases or acquire new tenants, ultimately positioning the property more positively for standard financing.
Consistent cash flows, strong operational history as well as the borrower’s net worth and liquidity are key considerations for this type of financing.