By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions
A $12 million ground-up multifamily construction loan in Brooklyn typically finances a 30 to 60 unit boutique multifamily project at total project cost of $20M to $30M including land, hard costs, soft costs, and reserves. Brooklyn ground-up faces specific regulatory and structural challenges including Local Law 97 carbon caps, 421-a / 485-x abatement structuring, Local Law 11 facade requirements, and HSTPA rent stabilization considerations. Most $12M Brooklyn ground-up loans fund through specialty bridge debt funds at 65 to 75 percent LTC, with permanent take-out via Fannie Mae or Freddie Mac at stabilization.
Get a Quote on Your $12M Deal →$12M Brooklyn ground-up multifamily construction stacks combine senior construction debt with institutional equity. Sponsors typically pursue agency forward commitment to lock the permanent take-out rate at construction start.
Pricing reflects active CLS CRE quote pipeline as of April 2026. Specific deal pricing depends on sponsor, property, and structure.
Typical $12M Brooklyn ground-up sponsors are NYC-focused multifamily developer-operators with completed Brooklyn or NYC-area construction projects. Sponsor net worth typically $10M to $50M; liquidity $2M to $10M. The capital structure typically includes $12M to $14M of construction debt at 65 to 75 percent LTC, $6M to $9M of common equity from an institutional or family office partner, and $1M to $3M of sponsor co-invest. Construction takes 18 to 24 months in Brooklyn given regulatory complexity.
On a $14M ground-up 38-unit market-rate multifamily construction in Bushwick, the sponsor was a Brooklyn-focused developer with 4 completed multifamily projects. The capital structure included $13M of construction debt at SOFR + 525 (9.85 percent all-in), $10M of common equity from a NYC family office, and $2M of sponsor co-invest. The construction lender required a Fannie Mae forward commitment for the permanent take-out, locking the perm rate at 5.95 percent fixed 10-year for delivery at month 26. Local Law 97 carbon compliance pathway was documented at construction start. Construction completed in 24 months. Lease-up reached stabilization at month 38.
Anonymized. All deal references protect borrower and lender identity.
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