RXR and Hudson Realty Capital have introduced a $250 million bridge-to-HUD loan program targeting the acquisition and refinancing of multifamily and healthcare properties. The initiative is structured to give borrowers short-term capital certainty while mapping out a defined route to long-term, HUD-insured permanent financing.
Under the program, borrowers can use bridge financing to either acquire new assets or refinance existing holdings in the multifamily and healthcare sectors. During the bridge term, borrowers are able to work with Hudson Realty Capital to pursue FHA/HUD-insured permanent debt, with the goal of creating a smoother and more predictable transition from short-term to long-term financing.
The bridge loans are subject to a minimum six-month lockout period. After that point, borrowers have the ability to prepay their loans without penalty, providing flexibility to execute permanent financing as soon as it is available and accretive. This feature is intended to align the bridge loan duration with the timing of HUD execution, while limiting friction costs when borrowers are ready to take out the bridge.
The launch of the program comes at a time when commercial real estate owners and operators are contending with elevated borrowing costs and tighter credit conditions. Bank lending has become more constrained, and many borrowers are under growing pressure to address upcoming debt maturities as a large volume of commercial real estate loans approaches their due dates.
Against this backdrop, RXR and Hudson Realty Capital are positioning the bridge-to-HUD offering as a source of transitional capital that can carry properties through to long-term, government-insured debt. By combining near-term funding with a clearly defined HUD takeout path, the program aims to help borrowers manage refinancing risk in what is described as an increasingly difficult interest rate environment.
Rich Ortiz, co-managing partner at Hudson Realty Capital, noted that the program is designed to give borrowers flexible capital alongside a clear strategy for achieving long-term HUD-insured financing. His comments underscore that the structure is targeted toward borrowers who need interim liquidity and a reliable exit to permanent debt execution while capital markets remain volatile and traditional lenders continue to pull back.
For multifamily and healthcare owners evaluating upcoming maturities or acquisitions, the new program provides an additional option in the bridge-to-permanent financing space. By explicitly tying the bridge phase to HUD-insured takeout financing via Hudson Realty Capital, the structure seeks to reduce uncertainty around both the availability and timing of permanent debt in the current market.
