Mini-Perm
A mini-perm is a medium-term commercial real estate loan (typically 3–7 years) that bridges construction or bridge financing and long-term permanent debt, used when permanent financing is not yet available or attractive.
What it means
Mini-perm loans fill a gap between initial development financing and long-term permanent debt. Common use case: a newly stabilized property where the sponsor wants to establish an operating track record before refinancing into agency or CMBS. Terms are typically 3–7 years, often with interest-only during stabilization and amortization kicking in later.
Mini-perm debt often comes from banks or life companies willing to underwrite the transitional phase. Pricing sits between bridge and permanent — typically 150–300 bps above the 10-year Treasury.
Related terms