Bridge financing is becoming a more attractive form of short-term finance for real estate borrowers as interest rates rise. It also positions investors in these funds in the most senior part of the capital stack, Mesa West Capital Principal Ryan Krauch pointed out when the company in January of this year closed its fourth and largest fund to date, at $900 million. The fund, like most of Mesa West's funds, will focus on short-term loans ranging from $20 million to $300 million.

Another recent entry into the bridge financing space is Cambridge Realty Capital Cos.' Signature Bridge Lending Program, which it launched in December 2016 to help with HUD financing.

“In recent years, we've seen an increased demand for a direct bridge lending platform from borrowers seeking to obtain HUD financing but unable to do so because of timing issues or being unable to meet certain HUD requirements,” Chairman Jeffrey Davies said in a prepared statement.

Loans are expected to start in the $5 million range.

BETHESDA, MD–Blackstone Mortgage Trust and Walker & Dunlop have formed a joint venture to originate and finance multifamily bridge loans — a market estimated to be worth as much as $20 billion.

Walker & Dunlop is contributing 15% of the venture's equity capital and Blackstone is contributing the remaining 85%.

The venture will offer floating-rate first mortgage loans to borrowers.

The JV will allow Walker & Dunlop to significantly expand its bridge lending business, according to CEO Willy Walker.

Bridge financing is becoming a more attractive form of short-term finance for real estate borrowers as interest rates rise. It also positions investors in these funds in the most senior part of the capital stack, Mesa West Capital Principal Ryan Krauch pointed out when the company in January of this year closed its fourth and largest fund to date, at $900 million. The fund, like most of Mesa West's funds, will focus on short-term loans ranging from $20 million to $300 million.

Another recent entry into the bridge financing space is Cambridge Realty Capital Cos.' Signature Bridge Lending Program, which it launched in December 2016 to help with HUD financing.

“In recent years, we've seen an increased demand for a direct bridge lending platform from borrowers seeking to obtain HUD financing but unable to do so because of timing issues or being unable to meet certain HUD requirements,” Chairman Jeffrey Davies said in a prepared statement.

Loans are expected to start in the $5 million range.