$25M Bridge Loan Dallas Multifamily | Commercial Lending Solutions 
Loan Size Example

$25 Million Bridge Loan for Dallas Multifamily

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $25 million bridge loan for multifamily in Dallas represents a mid-market value-add play in one of the nation's strongest rental markets. These deals typically target 100 to 250-unit properties undergoing significant operational or capital improvements, with lenders splitting between specialty debt funds offering non-recourse structures at 70 to 75 percent LTC and regional banks providing balance sheet capital at tighter leverage of 60 to 65 percent. In the current environment, borrowers are pricing these facilities in the 8.50 to 9.00 percent range depending on lender type, CapEx scope, and exit certainty. Dallas multifamily fundamentals remain resilient, making bridge refinance exits into agency debt the dominant payoff scenario within 24 to 36 months.

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Capital Stack

What a $25M Multifamily Bridge Capital Stack Looks Like

The $25 million bracket in Dallas typically attracts a mix of specialty bridge debt funds and regional bank lenders, with debt funds dominating the volume given their flexibility on leverage, CapEx budgets, and looser prepay terms. Sponsors at this size often prefer non-recourse debt fund structures to limit balance sheet risk during value-add periods, but bank balance sheet capital wins when leverage needs to stay conservative or when local bank relationships provide better pricing or extension certainty.

Capital Source Rate / Cost Size / LTV Notes
Specialty bridge debt fund SOFR plus 425 to 475 basis points, all-in 8.50 to 9.00 percent $17.5M to $18.75M (70 to 75 percent LTC) Non-recourse, 24 to 36 month term with 12 month extension option, reserves for 15 to 25 percent of CapEx, interest-only until stabilization
Regional bank balance sheet SOFR plus 350 to 425 basis points, all-in 8.00 to 8.75 percent $15M to $16.25M (60 to 65 percent LTC) Full recourse, 24 to 36 month term, may require equity co-invest or guarantee from sponsor, faster funding, local relationship advantage
Equity (sponsor capital) No cost, but performance-driven hurdle $6.25M to $7.5M (25 to 30 percent of deal value) Covers remaining CapEx, closing costs, reserves, and downside cushion, typically from sponsor balance sheet or co-investor partner
Mezzanine or co-lender (less common for $25M) SOFR plus 500 to 600 basis points if deployed $1.25M to $2.5M (5 to 10 percent of deal value) Typically only needed if CapEx budget is front-loaded or exit cap rate assumption is aggressive, subordinate to senior debt

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 $25M Multifamily Bridge Deal

A typical sponsor closing a $25 million multifamily bridge in Dallas has $75 million to $150 million in net worth, a track record of 5 to 15 completed multifamily transactions, and 8 to 12 years of commercial real estate operating experience. These operators are usually targeting either a 2 to 3 year hold with stabilized lease-up and operational improvements leading to agency refinance, or a tactical acquisition where market timing and rent growth absorption justify the bridge cost. Common motivations include acquiring off-market assets from distressed sellers, repositioning B-class properties in strong Dallas submarkets, or refinancing an existing mortgage into fresh capital for value-add CapEx.

From the CLS CRE Pipeline

A Real $25M Example

CLS CRE arranged a $24.5 million non-recourse bridge loan for a 185-unit value-add garden community in the Uptown submarket of Dallas, priced at 8.75 percent all-in on a 72 percent LTC basis. The sponsor was repositioning the asset with a $4.2 million CapEx budget focused on unit renovations, amenity upgrades, and common area repainting over 18 months of operations. A specialty debt fund provided the entire senior $24.5 million facility with 12 month extension rights and interest-only carry-through stabilization, while the sponsor contributed $9.5 million in equity to cover CapEx reserves and leasing costs. At month 22, in-place NOI had grown 35 percent year-over-year on the back of 94 percent occupancy and $1,485 average rent, enabling a clean agency refinance at 65 percent LTV and full prepay into the permanent loan, clearing the bridge ahead of maturity.

Anonymized. All deal references protect borrower and lender identity.

FAQ

$25M Bridge Loan Dallas Multifamily FAQ

Exit cap rates for stabilized Dallas multifamily typically range from 4.75 to 5.50 percent depending on submarket, property quality, and lease-up certainty. Debt funds and banks will stress test the refinance math at 5.25 to 5.75 percent to ensure the stabilized NOI supports agency debt at 65 to 70 percent LTV. Sponsors must build their underwriting to show a minimum 10 to 15 basis point buffer below the stressed cap rate assumption.
Most lenders cap CapEx reserve funding at 20 to 30 percent of the senior loan amount, meaning a $25M facility typically reserves $5M to $7.5M for capital improvements. Lenders will fund CapEx on a draw basis tied to third-party inspection and lien waivers, requiring detailed line-item budgets and contractor bids. Sponsors should assume a 4 to 6 week funding lag between submission and disbursement, so front-loaded CapEx requires larger equity reserves.
Most debt fund bridges offer 6 to 12 month extension options built into the term at origination, though lenders may charge a modest fee (25 to 50 basis points) or require updated appraisals and lease audits. Bank balance sheet bridges are often more flexible on extension negotiations if the sponsor maintains good communication and stabilization progress is on track. A delay in lease-up beyond 30 months will likely require a refinance into bridge or alternative capital, as most lenders will not extend beyond 36 to 42 months total.
Specialty debt fund structures are almost always non-recourse, making the property the sole source of repayment and allowing sponsors to walk away if the deal underperforms. Regional bank bridges typically carry full recourse to the sponsor's personal guarantee and may require a second position pledge of other real estate assets. Hybrid deals exist where partial recourse (50 percent of shortfall) is negotiated in exchange for lower pricing, but non-recourse is the default expectation for debt fund capital at this size.
Dallas maintains strong and stable rent growth of 3 to 5 percent annually, high occupancy floors of 93 to 96 percent, and deep capital market interest, which allows bridge lenders to price slightly lower than secondary markets like Austin or Phoenix. The combination of steady in-migration, job growth in tech and finance, and limited supply in core submarkets like Uptown, Frisco, and Las Colinas reduces execution risk, translating to pricing in the 8.50 to 9.00 percent band rather than 9.25 to 10.00 percent. Lenders view Dallas risk as moderate relative to the size of the loan, so sponsors with strong track records often see sub-8.75 percent pricing.


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