Question 1

Does a Nashville deal still pencil with multifamily vacancy at a cyclical high?

Accepted Answer

The vacancy is why the bridge exists, and the supply data is the reason it has an exit. Northmarq reported metro multifamily vacancy of 8.5% in the first quarter of 2026, flat quarter over quarter and a cyclical high, with trailing twelve month absorption of roughly 8,700 units, nearly matching new supply. On MMG Real Estate Advisors' counts, deliveries fall from 12,852 units in 2024 to 9,011 in 2025 to a forecast 6,020 in 2026, and Northmarq has units under construction down about 25% with annual multifamily permitting down more than 50%. Demand is being absorbed while the pipeline halves. That is a classic bridge-to-stabilization setup: a CRE bridge loan pays for the lease-up, and the permanent debt goes on once the rent roll is real.

Question 2

Can I underwrite rent growth on a Nashville lease-up?

Accepted Answer

No. Underwrite flat and let any growth be upside. Three independent series agree on direction as of mid-2026: Apartment List shows Nashville rent growth at -3.6% year over year with a metro median of $1,373, Zumper shows one-bedroom medians down 5% year over year, and CoStar data published by Northmarq shows average advertised asking rent down 1.2% to $1,642. The one constructive read inside that is Northmarq's first quarter of 2026 note that average effective rents rose 1.2% quarter over quarter, the strongest in five or more quarters, with the softness concentrated in Class B and C product while Class A held up. So the class of asset matters more than the metro average here. Bring us your actual rent roll and your leasing assumptions; we underwrite the building, not the headline.

Question 3

How do I read Nashville industrial, where vacancy looks tight but availability is rising?

Accepted Answer

Watch the gap between the two, and name the research house instead of blending them. CBRE put Nashville industrial vacancy at 4.4% in the first quarter of 2026, down 20 basis points from the prior quarter but 30 basis points higher than a year earlier, with availability at 7.5%, up 40 basis points quarter over quarter and 90 basis points year over year. Colliers reported 4.7% vacancy for the same quarter on its own inventory definition. The availability number running three points above vacancy means space is being marketed ahead of actual move-outs, which is a leading indicator of softening. On a value-add industrial bridge, that argues for sizing the interest reserve and the leasing budget to a longer marketing period than the vacancy rate alone would suggest.

Question 4

What happens to my Davidson County tax bill if I reposition a property to a commercial use?

Accepted Answer

The assessment ratio changes, and that alone can raise the bill by about 60% on unchanged value. Tennessee assesses residential and farm property at 25% of appraised value and commercial and industrial property at 40%. Davidson County's 2025 rates are $2.814 per $100 of assessed value in the Urban Services District and $2.782 in the General Services District. Worked through on a $500,000 GSD property: as residential it is assessed at $125,000 and the bill is about $3,478, roughly 0.70% of market value; as commercial it is assessed at $200,000 and the bill is about $5,564, roughly 1.11%. Commercial carry runs about 1.6 times residential carry on identical value. Size that into the hold, not the exit, and talk to your CPA or a property tax adviser about your specific parcel.

Question 5

What does Tennessee's recording tax add to a Nashville bridge note?

Accepted Answer

Budget 11.5 cents per $100 of debt at recording, with the first $2,000 of indebtedness exempt. Tennessee's indebtedness tax is paid by the mortgagor, and the note holder collects and remits it, so it lands on your closing statement rather than ours. On a $4,000,000 bridge note that is roughly $4,598. Every recorded debt instrument carries a legend stating the maximum principal indebtedness for Tennessee recording tax purposes, and that stated maximum is what gets taxed. A revolving line is taxed once on its stated maximum and re-draws are not taxed again, but an increase beyond the stated maximum is taxed on the increase with no $2,000 exclusion, which is worth structuring for up front if you expect to upsize. Separately, the realty transfer tax on the acquisition itself is $0.37 per $100 and is paid by the buyer by statute. Confirm the exact figures against your closing statement and your attorney's numbers.

Question 6

If a Nashville bridge deal goes sideways, how does the Tennessee process work?

Accepted Answer

Tennessee is a non-judicial power of sale state, and the notice mechanics are set by statute. Under TCA 35-5-101 and following, a trustee's sale requires three newspaper publications in the county where the property sits, the first at least 20 days before the sale, plus a copy of the notice to the debtor and any co-debtor by registered or certified mail on or before the first publication. A sale can be postponed without republication within one year if it is announced at each scheduled date, with 10 days' mailed notice where the postponement runs more than 30 days. The statutory right of redemption runs two years and is expressly waivable, so how your loan documents handle it is a question for your attorney, not a lender's blog post. We say all of this so the timeline is on the table before you sign, not after. Ask your counsel about the specifics of your deal.

Question 7

With metro multifamily vacancy at a cyclical high, how much equity does a bridge take?

Accepted Answer

About 25% of value. We go up to 75% LTV, so on a $4,000,000 Nashville asset that is up to $3,000,000 from us and $1,000,000 from you (4,000,000 x 75% = 3,000,000), interest-only for the term. On a repositioning the sizing usually turns on where value sits at close rather than where you expect it to sit at stabilization, and with metro multifamily vacancy at a cyclical high we will want the interest reserve and the leasing budget built into the number. Subject to underwriting.

Question 8

Nashville deliveries halve by 2026. Does the bridge term stretch to cover the lease-up?

Accepted Answer

Yes. Up to 24 to 36 months, interest-only. That is deliberately sized to a lease-up rather than to a quick trade. The Nashville case for the longer end is the multifamily supply curve: deliveries fall from 12,852 units in 2024 to 9,011 in 2025 to a forecast 6,020 in 2026, so the absorption you are underwriting to arrives over quarters, not weeks. Build the term out to the point where the rent roll is real enough to carry permanent debt, because a bridge that matures six months early is a costly way to be right. Subject to underwriting.

Question 9

What is the largest Nashville bridge loan you will write?

Accepted Answer

Up to $10,000,000. The structure runs bridge or cash-out across property types, so the same facility can fund an acquisition or pull equity out of an asset you already own to fund the next one. Interest-only for the term keeps the carry down while the property is not yet paying for itself. Bring the rent roll and the leasing assumptions; we size on the building. Subject to underwriting.

CRE Bridge in Nashville

How it works

Run your CRE Bridge numbers.

CRE Bridge in Nashville, answered.

More CRE Bridge questions, answered on the program page

Guides for CRE Bridge

CRE Bridge vs. other options

Other programs in Nashville

Funding Nashville deals fast.