Medical office bridge loans
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A medical office bridge loan is short-term financing on a building leased to physicians, outpatient providers or health systems, used when vacancy, rollover or a maturing loan keeps the property from qualifying for permanent debt. Asset-based lenders size it off the as-is appraised value and focus on tenant specialties, health system relationships and the cost of medical buildouts. It is commonly used to acquire a building, fund buildout for new medical tenants, or bridge an owner-user to SBA or bank financing.
Compare medical office bridge lenders for your deal
Enter your deal once and compare every asset-based lender whose rules fit it, side by side: max loan, rate, points, term, days to close and total cost. Lenders stay anonymous until one confirms your terms.
- Free for borrowers
- No credit pull to compare
- Loans from $1M to $50M
What lenders look at
Tenant specialization
The mix of specialties and how specialized each suite is. Highly specialized buildouts such as imaging or surgery can be expensive to re-lease to another use.
Hospital affiliation
Whether the building is on or near a hospital campus, leased to a health system, or subject to ground leases or use restrictions from a hospital.
Buildout costs
Medical tenant improvements cost more than standard office, with plumbing, shielding, ventilation and accessibility requirements.
Tenant practice strength
The financial strength of individual practices, whether they are owned by a health system or private equity group, and lease guarantees.
Lease terms and rollover
Remaining lease terms, renewal history and how sticky tenants are given the cost of moving medical equipment.
Parking and access
Patient parking, accessibility and visibility, which matter more for medical uses than for standard office.
How leverage works
Medical office is usually viewed more favorably than general office, and many asset-based bridge lenders lend around 60–70% of as-is value. Leverage is lower for buildings with heavy vacancy, highly specialized suites that are hard to re-lease, or short remaining lease terms. When the plan includes buildouts for new tenants, some lenders fund TI/LC from a holdback sized to cost.
Use the commercial bridge loan sizer to see whether LTV or LTC decides your loan. The deal form asks for square feet, occupancy today and current NOI, so lenders see the numbers they size on.
Documents lenders ask for
- Rent roll with tenant specialties, lease dates and options
- All leases and amendments, including any hospital ground lease or use restrictions
- Tenant estoppel certificates
- Trailing 12-month operating statement
- TI/LC and buildout budget
- Purchase contract or current loan payoff statement
- Tenant guarantor or practice financials, where available
- Site plan and parking information
- Insurance declarations and loss runs
- Entity documents and sponsor real estate schedule
How fast it closes
Medical office bridge loans commonly close in about 21–30 days. Lenders usually require a full appraisal, Phase I environmental, which can look at medical waste handling and any imaging equipment history, and a property condition report. On-campus buildings may need consent from the hospital under a ground lease, which can add time.
Common bridge scenarios
Acquisition with lease-up
Buy a medical office building with vacant suites and fund buildouts for new providers.
Maturing loan payoff
Pay off a loan coming due while major leases are being renewed.
Owner-user bridge
A practice buys its building on bridge debt and later refinances into SBA 504 or a bank loan.
Repositioning from general office
Convert an existing office building to medical use through interior buildouts while leases are signed.
Typical exit
Stabilized medical office typically refinances with a bank, CMBS or life company, owner-user practices often use SBA 504, or the building is sold to healthcare real estate investors.
Related
- Asset-Based Commercial Real Estate Loans
- No-Credit-Check Commercial Bridge Loans
- Fast-Close Commercial Bridge Loans: 7, 14 and 21 Days
- Commercial bridge loan sizer (LTV and LTC)
- Debt yield and DSCR calculator
- Bridge loan cost calculator
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Frequently asked questions
Can I get a medical office bridge loan without a credit check?
Yes. Some asset-based lenders size the loan off the property and don't pull credit, usually at lower leverage. You can filter for them when comparing.
How fast can a medical office bridge loan close?
Often in about 21–30 days. Hospital consent on campus buildings and tenant estoppels are the usual delays.
How much leverage is available on medical office?
Many asset-based lenders lend around 60–70% of as-is value, less for highly specialized or vacant buildings. Try the bridge loan calculator.
Is medical office treated better than regular office?
Generally yes. Medical tenants tend to renew because moving equipment is expensive, but specialized buildouts can make vacant space harder to re-lease.
Can an owner-user practice use a bridge loan?
Yes. A practice can buy or refinance its building on bridge debt and later move to SBA 504 or bank financing.
Can a bridge loan fund medical buildouts?
Some lenders fund tenant improvements from a holdback as part of a value-add bridge loan.
General information for business-purpose investors, not legal, tax or financial advice. Lenders set final terms after underwriting.