Pre- Stabalized Multi-Family

1892 Capital Partners provided a $15,100,000 income-producing bridge loan to Cedar Cove Commercial, LLC for a newly developed 58-unit multifamily property located at 1601 and 1621 Plisko Lane in Port Orchard, Washington.

-square-foot multifamily assetThis financing was structured as a pre-stabilization bridge loan to support the borrower during the critical lease-up phase before transitioning , designed to support the borrower during the critical lease-up phase before transitioning into permanent financing.

The Opportunity

The subject property is a 45,907 square foot multifamily asset, completed in 2025, representing a newly delivered apartment community in the growing Kitsap County submarket.

While the asset was newly constructed, it had not yet reached stabilized occupancy. Traditional lenders often hesitate in this phase due to limited operating history, creating a gap between project completion and long-term financing.

This is where bridge capital plays a practical role.

The Financing Solution

1892 Capital Partners structured a 12-month bridge loan at 9.75% interest, with leverage at 83.20% loan-to-value (LTV) and 80.98% loan-to-cost (LTC).

The structure provided:

• Immediate capital to take out prior financing
• Time and flexibility to complete lease-up
• A clear runway toward stabilization
• Optionality for either refinance or sale upon execution

Rather than forcing a premature permanent loan, the bridge allowed the borrower to maximize asset value through operational stabilization.

Why Bridge Financing Made Sense

For newly built multifamily properties, timing is critical.

Even strong assets can face friction when:

• Lease-up is still in progress
• Operating history is limited
• Conventional lenders require stabilized performance

By using a bridge loan, the borrower avoided locking into long-term financing too early and instead positioned the property for a stronger takeout.

Execution & Outcome

1892 Capital Partners successfully closed this bridge-to-refinance loan, delivering speed, certainty, and a structure aligned with the business plan.

The borrower is now positioned to:

• Stabilize occupancy
• Increase net operating income
• Execute a refinance into permanent debt or pursue a sale

This transaction reflects 1892’s approach to lending: practical structures, clear exits, and capital that aligns with real-world deal timelines.