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

$10 Million Bridge Loan for Denver Multifamily

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $10 million bridge loan on Denver multifamily typically finances a value-add acquisition or stabilization play in core or emerging submarkets like LoDo, Highlands, or Aurora. Lenders in this size range are split between specialty bridge debt funds offering non-recourse leverage at 70 to 75 percent LTC, and regional bank balance sheets extending 60 to 65 percent recourse structures. Rates in 2026 are floating around SOFR plus 275 to 325 basis points, landing most deals in the 9.00 to 9.50 percent range. These loans assume a 24 to 36 month hold with a clear exit into agency refinance or permanent debt once the property stabilizes.

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Capital Stack

What a $10M Multifamily Bridge Capital Stack Looks Like

Denver's $10M multifamily bridge market is dominated by specialty bridge debt funds that underwrite to the stabilized business plan and accept moderate leverage in exchange for fixed-term certainty and faster closes. Regional banks remain active in this space but typically require sponsor recourse or guarantees and cap LTC lower, making them competitive mainly when sponsors prefer relationship banking or have existing deposit relationships. The lender choice ultimately hinges on sponsor experience, property condition, and the aggressiveness of the value-add timeline.

Capital Source Rate / Cost Size / LTV Notes
Specialty bridge debt fund SOFR plus 275 to 325 bps (9.00 to 9.50 percent all-in) $7.0M to $7.5M (70 to 75 percent LTC) Non-recourse, 24 to 36 month term, quarterly interest-only payments, extension option for 6 to 12 months, exit cap 6.50 to 7.00 percent into agency
Regional bank balance sheet SOFR plus 300 to 350 bps (9.25 to 9.75 percent all-in) $6.0M to $6.5M (60 to 65 percent LTC) Recourse to sponsor, 24 month initial term with 12 month extension, monthly or quarterly interest-only, preference for sponsors with $50M+ portfolio and 10+ year track record
Credit union consortium SOFR plus 310 to 360 bps (9.35 to 9.85 percent all-in) $5.5M to $6.5M (55 to 65 percent LTC) Recourse, 30 month term, requires full sponsor financial package and property appraisal, slower underwriting (45 to 60 days), community-focused lenders active in Denver metro
Mezzanine equity co-lender (stack with senior debt) Equity return 16 to 22 percent IRR or 7 to 10 percent cash return $2.0M to $3.0M (20 to 30 percent of total capital) Paired with $7M senior debt to hit 75 to 80 percent total leverage, subordinate position assumes execution risk, typically used when bridge alone is insufficient for acquisition price or CapEx budget

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 Denver sponsor executing a $10M multifamily bridge is an experienced operator with a portfolio between $75M and $300M in assets under management, a minimum of five closed value-add transactions, and a direct track record in the Rocky Mountain region. Motivations range from acquiring distressed or naturally-occurring-affordable-housing (NOAH) buildings in gentrifying neighborhoods to refinancing existing stabilized assets into longer-term debt in order to recycle equity for new purchases. Most sponsors in this size range maintain professional management teams, have working relationships with regional contractors for renovation, and target 75 to 125 basis point spreads between bridge exit cap and stabilized agency rate.

From the CLS CRE Pipeline

A Real $10M Example

CLS CRE closed a $10.25 million bridge for a 185-unit value-add acquisition in north-central Denver completed in late 2024. The sponsor was an eight-year operating partner with a regional focus and a $120M portfolio; the property was a 1990s garden-style complex with deferred maintenance and below-market rents. A specialty bridge debt fund provided the financing at 9.30 percent on a 73 percent LTC basis, with a 30 month term and quarterly interest-only payments. The sponsor budgeted $2.8 million CapEx for unit renovations, common area upgrades, and amenity additions; the fund underwrote to a 5.75 percent exit cap into agency permanent financing, which the sponsor achieved in month 26 after stabilizing occupancy to 96 percent and reaching $2.1 million pro-forma NOI.

Anonymized. All deal references protect borrower and lender identity.

FAQ

$10M Bridge Loan Denver Multifamily FAQ

Specialty bridge debt funds typically underwrite to 70 to 75 percent LTC based on stabilized value or purchase price plus CapEx budget, whichever is lower. Regional banks are more conservative and cap LTC at 60 to 65 percent, particularly if the sponsor is new to the market or the asset is in early-stage value-add. LTC will also compress if the property carries significant vacancy, structural issues, or environmental concerns.
Most Denver multifamily bridges are sized to exit into agency refinance (Fannie Mae, Freddie Mac) within 24 to 36 months once the property reaches 90%+ occupancy and demonstrates stabilized NOI. Exit rates are typically 50 to 100 basis points below bridge rates; sponsors should model a 5.75 to 6.50 percent exit cap into agency to ensure debt service coverage ratio compliance at takeout. Lenders routinely offer one or two 6 month extension options if the refinance timeline slips but the business plan is tracking.
Specialty bridge debt funds typically offer non-recourse financing, provided the sponsor has a strong balance sheet and prior multifamily track record. Regional bank bridges are almost always recourse to the sponsor and may require a personal guarantee or additional collateral pledge. Credit unions and some bank consortiums will negotiate limited recourse structures but generally only for sponsors with $200M+ in assets under management.
Specialty bridge debt funds typically close in 30 to 45 days from complete application and property appraisal; these lenders are optimized for speed and often have pre-approval capacity. Regional banks typically require 45 to 75 days due to internal credit committee processes and more extensive financial documentation requests. Sponsors should budget for property appraisal (7 to 10 days), title commitment (5 to 10 days), and environmental Phase I (5 to 7 days) in parallel.
Most specialty bridge debt funds are pricing at SOFR plus 275 to 325 basis points, translating to 9.00 to 9.50 percent all-in depending on sponsor strength and LTC. Regional banks and credit unions are modestly higher at 9.25 to 9.75 percent, particularly if recourse is required or the sponsor has limited Denver-area experience. Rates move with Fed policy and SOFR; sponsors should lock pricing within 15 to 20 days to avoid slippage.


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