$10M Bridge Loan Dallas Multifamily | Commercial Lending Solutions 
Loan Size Example

$10 Million Bridge Loan for Dallas Multifamily

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $10 million bridge loan for multifamily in Dallas sits at the sweet spot between institutional capital sources and regional execution speed. Dallas multifamily remains a magnet for value-add sponsors seeking 18 to 36 month holds before refinancing into agency debt. Lenders compete aggressively on this size, with specialty debt funds and regional banks willing to underwrite repositioning deals at 70 to 75 percent LTC and pricing around 9.00 percent on a floating SOFR-plus-spread structure. The market rewards sponsors who can articulate a credible rent growth strategy and meaningful CapEx deployment.

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Capital Stack

What a $10M Multifamily Bridge Capital Stack Looks Like

The $10 million multifamily bridge in Dallas typically draws from either a specialty debt fund on a non-recourse basis or a regional bank balance sheet offering recourse terms and tighter covenants. Lender selection hinges on sponsor track record, business plan clarity, and exit timeline: debt funds move faster and offer longer extension runways; banks demand stronger asset quality and cleaner sponsorship but price competitively for risk mitigation.

Capital Source Rate / Cost Size / LTV Notes
Specialty Bridge Debt Fund 9.00 to 9.50 percent floating (SOFR + 325 to 375 bps) $7M to $10M at 70 to 75 percent LTC Non-recourse, 24 to 36 month term with one 12-month extension option, rates step if extension exercised, focus on business plan execution over sponsor strength
Regional Bank Balance Sheet 8.75 to 9.25 percent floating (SOFR + 300 to 350 bps) $6M to $8M at 60 to 65 percent LTC Full recourse or carve-out, tighter financial covenants, faster closing, preference for properties with in-place cash flow and experienced operators
Preferred Equity / Co-Invest (Sponsor Capital) Promote + preferred return (7 to 8 percent) $2M to $3M (equity cushion) Subordinate to all debt, covers CapEx overruns and lease-up shortfalls, aligns lender incentives with sponsor execution
Sponsor / Operator Cash Reserves At-risk capital $500K to $1M (working capital, reserves) Demonstrates skin in the game, covers early lease-up phase, operational contingencies, and exit costs; preferred equity investors often co-source

Pricing reflects active CLS CRE quote pipeline as of April 2026. Specific deal pricing depends on sponsor, property, and structure.

Sponsor Profile

Who Closes a $10M Multifamily Bridge Deal

The typical $10 million bridge borrower in Dallas is a regional or national value-add operator with 5 to 10 completed repositioning projects and a net worth in the $25 million to $50 million range. These sponsors are often refinancing a previous hold, acquiring a distressed or transitional property, or executing a structured rent-up at a newer or aging asset in North Dallas, East Dallas, or the Metroplex submarkets. They bring in-house asset management, a leasing track record, and usually co-invest preferred equity alongside the debt fund or bank.

From the CLS CRE Pipeline

A Real $10M Example

CLS CRE closed a $9.8 million bridge loan in early 2024 for a 240-unit mid-rise property in the Uptown submarket that had undergone recent ownership transition. The sponsor had a six-year track record and was executing a 18-month lease-up and selective unit renovation plan with a $1.8 million CapEx budget. A specialty debt fund provided capital at 9.10 percent (SOFR + 340 bps) with 72 percent LTC, non-recourse, and a 24-month initial term plus one 12-month extension. The borrower stabilized rent by month 20, refinanced into a 10-year agency fixed-rate loan at 5.40 percent, and retired the bridge with a 180 bps gain on the refinance coupon. The ability to execute lease-up on schedule and demonstrate 95 percent occupancy was the key to early exit timing.

Anonymized. All deal references protect borrower and lender identity.

FAQ

$10M Bridge Loan Dallas Multifamily FAQ

Most debt funds model 80 to 85 percent in-place occupancy by month 12, with stabilization (90 to 95 percent) achieved by month 18 to 24. Lenders stress-test under slower scenarios and require evidence of a leasing team, move-in incentive program, and market-driven rent comps. If the property is already occupied, lenders focus on rent growth (4 to 7 percent annually) and expense management post-renovation.
Unit-level renovations typically run $3,000 to $6,000 per unit depending on scope (paint and carpet vs. full kitchen and bath). Common area and building systems work can add another 20 to 30 percent to total CapEx. For a 200-unit asset with 50 to 60 percent renovated, expect a $1.2 million to $2.0 million CapEx reserve, which lenders often scrutinize to ensure neither underestimation nor gold-plating.
Specialty debt funds almost always offer non-recourse or modified non-recourse (with carve-outs for fraud or environmental) at 70 to 75 percent LTC. Regional banks may offer full recourse at 60 to 65 percent LTC or a hybrid recourse structure for the first 12 months, then non-recourse upon achievement of milestones. Sponsor strength and track record drive the depth of recourse negotiation.
As of early 2026, specialty debt funds price around 325 to 375 bps over SOFR for strong sponsors and clear business plans, resulting in all-in rates of 8.75 to 9.50 percent. Regional bank bridge pricing ranges from 300 to 350 bps over SOFR. Rates step up 50 to 75 bps if the borrower exercises an extension, incentivizing a refinance into agency debt before the extension trigger.
The standard exit is a 10-year or longer fixed-rate agency refinance once the property reaches 85 to 90 percent occupancy and demonstrates 60 to 90 days of stabilized rent and operating history. Many sponsors exit in 18 to 24 months. If the property stabilizes early, a sponsor can explore a rate-and-term or cash-out refinance with an agency lender; if timeline stretches, the extension option provides a 12-month runway to reach stabilization or find an alternative buyer or lender.


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