Why Use Bridge Financing for Hotel and Multifamily Construction Projects – And Convert to Permanent Loans Later.

In commercial real estate development, speed and flexibility are critical—especially when developing hotels or multifamily properties. Whether you're breaking ground on a new project or acquiring land with plans to build, bridge financing can offer the capital you need now, while giving you the option to refinance into permanent debt once your project stabilizes.

At Commercial Partners of Texas, we help developers secure flexible, fast bridge loans and guide them through a smooth transition to long-term financing.

What Is Bridge Financing in Construction?

Bridge financing for construction provides short-term funding (6 to 36 months) to cover costs such as land acquisition, site prep, vertical construction, and early lease-up phases. These loans are typically interest-only and structured to be refinanced with a permanent loan once the project is complete and generating income.

Why Start with a Bridge Loan for Construction?

1. Fast Access to Capital

Traditional construction loans can take months to underwrite and close—especially for hotels or large multifamily developments. Bridge loans are much faster to fund, allowing you to begin construction without unnecessary delays.

2. Less Stringent Underwriting

Many bridge lenders focus on the future value of the property and the business plan—not just current financials or rent rolls. This is key for projects that haven’t broken ground or are in early development.

3. Flexible Use of Funds

Bridge loans can cover:

• Land acquisition

• Soft costs (architects, permits, etc.)

• Hard construction costs

• Interest reserves during lease-up

• Marketing and stabilization expenses

  
  

4. Time to Stabilize and Refinance

Once your hotel or multifamily project is built and occupied, it becomes eligible for permanent financing through banks, Fannie Mae, Freddie Mac, HUD, or CMBS lenders—often at significantly lower rates and with longer terms.

The Two-Phase Financing Strategy: Bridge to Perm

This strategy is ideal for:

• Ground-up hotel developments

• Multifamily construction projects

• Value-add or repositioning deals

Phase 1: Bridge Loan (12–36 months)

• Quick close

• Interest-only payments

• Used during construction, lease-up, and stabilization

Phase 2: Permanent Loan (10–30 years)

• Lower interest rates

• Amortizing structure

• Based on stabilized NOI and long-term value

  
  

Real Example: New Multifamily in Houston

A developer acquires land near downtown Houston for a 120-unit Class A apartment complex. They use a bridge loan to fund land purchase, permitting, and construction. After 85% occupancy is reached and rents stabilize, the developer refinances into a Freddie Mac fixed-rate permanent loan, locking in a lower rate for 30 years.

Is Bridge-to-Perm Right for You?

If you’re a builder, investor, or developer in Texas working on a hotel or multifamily project, bridge-to-perm financing offers an efficient, low-friction path from concept to long-term ownership.

But success starts with the right partner.

Work with Texas Bridge Loan Experts

At Commercial Partners of Texas, we:

• Connect you with the right bridge lenders

• Assist with construction draw management

• Structure refinance options into long-term debt

• Help you plan the full lifecycle of your financing

  
  

Let’s Build Something Together

📞 Call us at 832-607-1113📧 Email george@amerimort.com🌐 Visit www.amerimort.com to get started.