In today’s tightening credit environment, even experienced real estate developers can find themselves out of options—especially when traditional lenders back away and litigation pressures mount. This was the case for a Florida-based developer who came to Edgewater Lending facing the possibility of asset loss, stalled progress, and no clear path forward.
Here’s how a customized bridge loan gave them the liquidity, leverage, and time they needed to exit bankruptcy and regain control.
The Situation
The developer had a partially completed mixed-use project in a high-demand area of South Florida. The asset had strong fundamentals, but pandemic-related delays and cost overruns led to:
- Missed payments to secured creditors
- Lawsuits from vendors and equity partners
- A foreclosure action from their construction lender
- A voluntary Chapter 11 bankruptcy filing to preserve the project and stay litigation
Despite a viable business plan and local demand for the finished product, no traditional lender would step in—not during an active bankruptcy and certainly not with litigation on the table.
The Challenge
The developer needed:
- Capital to satisfy key creditors and stop foreclosure
- Liquidity to continue construction and protect asset value
- A lender willing to work within the bankruptcy process
- A quick close to meet court-imposed deadlines for plan confirmation
Time was running out, and the project’s equity was at risk.
The Edgewater Solution
Edgewater Lending underwrote the deal quickly, focusing on the real estate value, exit potential, and court-approved path forward. We coordinated closely with the developer’s legal team to structure a DIP-style bridge loan tailored for both bankruptcy compliance and real-world urgency.
Key loan terms included:
- Interest-only, short-term loan to minimize cash outlay during stabilization
- Custom draw schedule aligned with construction milestones
- Lien and title structuring approved by the bankruptcy court
- Pre-negotiated exit strategy via refinance or partial sale of condo units
Time to close: 13 business days from final underwriting to disbursement.
The Outcome
With Edgewater’s capital in place:
- The developer exited bankruptcy through a confirmed plan
- Foreclosure was permanently avoided
- Construction resumed and vendor disputes were resolved
- Units were brought to market on the developer’s timeline
- A conventional refinance followed 10 months later at improved LTV and rates
Most importantly, the borrower retained control, preserved equity, and delivered the project without a distressed sale.
What This Shows
This case is one of many where a structured bridge loan, aligned with legal and business objectives, can change the outcome completely. For attorneys and advisors working with real estate owners in distress, the key is finding a lender that can:
- Work under bankruptcy timelines
- Coordinate with legal teams
- Customize for both risk and opportunity
Need Help Navigating a Similar Situation?
Edgewater Lending specializes in DIP, bridge, and exit financing for real estate owners, developers, and business operators in complex financial situations. Whether the case is early-stage or mid-confirmation, we’re ready to step in quickly—with structure and strategy.
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