A bridge loan is a short-term loan which “bridges” the Borrower’s plan from ‘need A’ to ‘need B’. In this case, the Borrower might need financing only for a very short time frame; hence long-term fixed rate loan is not the solution.
A mezzanine loan can be a type of bridge loan in the sense that it is short-term and not permanent financing. However, a mezzanine loan is not secured by property, but by an ownership interest in the company that owns the property. This occurs when the Borrower needs more money than he is able to borrow against the property, so he puts up an interest in his company as collateral.
At typical 75% - 95% LTC, we are able to offer the necessary capital that allows our clients to achieve their business objectives.