Bridge Loans

Value-add acquisitions require capital that can close quickly and accommodate a property that isn't yet performing at its potential. Conventional financing rarely fits — the asset doesn't qualify on current income, and the timeline doesn't match institutional lending cycles.

Bridge financing bridges that gap. It allows you to acquire the asset, execute your business plan — whether that's renovation, repositioning, or lease-up — and refinance into permanent financing once the property stabilizes and qualifies.

This is the most common use case for bridge capital. The structure is straightforward: close fast, improve the asset, exit to agency or conventional debt once stabilized.

‍

Some transactions simply need to close fast. A motivated seller, a competitive bid situation, an expiring purchase contract, or a 1031 exchange with a tight identification window — conventional financing timelines don't accommodate these realities.

Bridge capital can close in three to four weeks. There are no agency overlays, no lengthy underwriting queues, and no committee approvals that extend timelines unpredictably. The underwriting is asset-focused and decision-making is direct.

If the deal is sound and the exit is clear, the timeline is the only variable we're solving for.

A newly constructed or recently renovated property faces a specific financing challenge: it doesn't yet qualify for permanent debt because occupancy hasn't reached stabilization thresholds. The asset is performing — or will be shortly — but the income history isn't there yet.

Bridge financing holds the position while the property leases up. It provides the runway to reach stabilized occupancy without forcing a premature refinance or a distressed sale. Once the property hits target occupancy and can support permanent debt service, the bridge exits cleanly.

This structure is particularly well-suited to multifamily, mixed-use, and ground-up construction projects in the final phase before permanent financing.

‍

Acquiring performing, sub-performing, or non-performing notes requires a capital partner who understands the asset behind the paper — not just the note itself. Standard acquisition financing doesn't apply here. The structure needs to reflect the note's position, the underlying collateral, and the borrower's business plan for the asset.

Note-on-note financing provides acquisition capital secured by the note being purchased, with conversion features that allow transition to a first mortgage position when appropriate. Future advances are available for interest shortfalls and business plan execution, and revolving facilities can be structured for portfolio acquisitions or ongoing note acquisition strategies.

This is a fit for experienced note investors with a clear disposition or workout strategy on the underlying asset.

Debtor-in-possession financing is highly specialized capital provided to companies operating under Chapter 11 bankruptcy protection. It is the funding mechanism that keeps a restructuring business operational while a reorganization plan is developed and executed.

DIP loans carry super-priority status — senior to most or all pre-petition debt — by order of the Bankruptcy Court. That court approval also governs all terms, collateral, and use of proceeds, providing judicial oversight throughout the process.

The capital serves a specific purpose: maintain payroll, fund vendors, preserve going-concern value, and pay the legal and advisory teams required to execute the Plan of Reorganization. A business that stops operating in Chapter 11 liquidates. DIP financing prevents that outcome.

Bastion works with specialized DIP lenders who operate outside traditional institutional timelines — initial assessments are rapid, term sheets are issued quickly, and capital is available upon the Interim Order. Facility sizes typically range from $500,000 to $15,000,000, covering situations that are often too small for large institutional DIP providers.

This is a fit for legal counsel, financial advisors, and restructuring professionals working on active Chapter 11 cases where speed and certainty of capital are the critical variables.