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

$25 Million Bridge Loan for Los Angeles Multifamily

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $25 million multifamily bridge loan in Los Angeles represents a core mid-market value-add or stabilization refinance, typically underwritten at 70 to 75 percent LTC by specialty debt funds or 60 to 65 percent by bank balance sheets. In 2026, these loans are pricing at 8.75 percent (all-in) on a SOFR-plus-spread basis, reflecting both the floating-rate environment and the execution risk inherent in Los Angeles's competitive multifamily market. Most deals in this range target a 24 to 36 month hold with an eye toward agency refinance at stabilization, making lender selection hinge on both leverage appetite and speed to close. Borrowers pursuing this size typically have 100 to 250 unit portfolios, moderate CapEx programs, and a clear line of sight to stabilized NOI growth.

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Capital Stack

What a $25M Multifamily Bridge Capital Stack Looks Like

Specialty bridge debt funds dominate this loan size in Los Angeles, offering non-recourse terms and higher LTC in exchange for more rigorous underwriting and tighter timeline enforcement. Bank balance sheet lenders compete aggressively on spreads but typically require recourse and reserve stronger liquidity, making them the secondary choice for sponsors with weaker cash positions or longer execution windows. The decision between fund and bank usually turns on the sponsor's liquidity profile, the deal's exit timeline, and whether the borrower can accept full recourse liability.

Capital Source Rate / Cost Size / LTV Notes
Specialty bridge debt fund SOFR + 275 to 325 basis points (8.75% all-in illustrative) $17.5M to $18.75M (70 to 75% LTC on $25M base) Non-recourse, 24 to 36 month term with two 6 month extension options, mandatory prepay at exit or maturity, rate lock available for 30 to 60 days post close
Bank balance sheet bridge SOFR + 250 to 300 basis points (8.50% to 8.60% all-in illustrative) $15M to $16.25M (60 to 65% LTC on $25M base) Full recourse to sponsor, 24 to 36 month initial term, floating rate only, requires cash reserve equal to 6 to 12 months DSCR at stabilization
Mezzanine provider (hybrid equity) 12 to 15% IRR preferred return, 2 to 3% annual management fee $3M to $5M (10 to 15% of total capital stack) Preferred equity layer sitting above first mortgage, used to boost sponsor equity cushion or fund CapEx without additional leverage, 36 month minimum hold, common in high-touch repositioning deals
Sponsor equity / GP contribution Target 20 to 30% of total project cost $5M to $7.5M in net sponsor capital Demonstrates skin in the game, absorbs initial operating losses and unexpected CapEx overruns, reduces lender risk and tightens pricing, typically earmarked for reserves and CapEx shortfalls

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 pursuing a $25 million multifamily bridge in Los Angeles is an established multifamily operator with a track record of 5 to 15 completed value-add deals, a net worth of $15 million to $50 million, and direct or indirect ownership of 500 to 2,000 units across one or more metropolitan areas. Motivations span rate refinancing of aging adjustable-rate debt, acquisition of off-market or troubled properties with deferred CapEx, and tactical hold-and-reposition strategies targeting rent growth driven by neighborhood appreciation or amenity upgrade. These sponsors typically have in-house asset management capabilities, a relationships-based capital stack, and the operational chops to execute on a 12 to 18 month value-add plan.

From the CLS CRE Pipeline

A Real $25M Example

CLS CRE placed a $25 million bridge loan for a 182-unit garden-style asset in the Los Feliz submarket. The borrower, an experienced multifamily sponsor, was consolidating ownership from two separate entities and required 24 month capital to fund a strategic CapEx program targeting rent growth and operational efficiency gains. A specialty bridge debt fund provided the full $25 million at 8.75 percent (SOFR + 300 bp) on a 70% LTC basis, non-recourse, with a 24 month initial term and two 6 month extension options. The sponsor funded $6.5 million in net equity, executed the CapEx program ahead of schedule, and achieved stabilized NOI 18 percent above underwritten budget within 22 months, enabling a seamless refinance into agency product at a 5.85 percent fixed rate.

Anonymized. All deal references protect borrower and lender identity.

FAQ

$25M Bridge Loan LA Multifamily FAQ

Specialty bridge debt funds typically lend at 70 to 75 percent LTC, while bank balance sheets cap out at 60 to 65 percent. The difference reflects lender appetite for non-recourse risk and the strength of the sponsor's underwriting and operational track record. A $25 million bridge at 72 percent LTC, for example, implies a total project cost of approximately $34.7 million, leaving room for 25 to 30 percent sponsor equity contribution.
The rate reflects a SOFR base rate of approximately 5.25 to 5.50 percent, plus a spread of 275 to 325 basis points. The spread compensates the lender for execution risk, Los Angeles market volatility, carry costs during the stabilization phase, and the non-recourse or partial-recourse structure typical of this loan size. Sponsors with longer timelines, weaker operator experience, or lower exit cap assumptions may face spreads at the higher end of this range.
Exit caps range from 4.75 to 5.50 percent depending on the property's stabilized profile, market conditions, and agency lending appetite at maturity. A $25 million bridge on a 182-unit property with estimated stabilized NOI of $2.8 million might assume a 5.10 percent exit cap, implying a refinance loan amount of roughly $54.9 million and a comfortable debt paydown margin. The lender typically stress-tests the deal against exit caps 50 to 75 basis points higher to ensure refinance feasibility even in a modest rate-hiking scenario.
Value-add programs typically range from $8,000 to $18,000 per unit, depending on the property's age, amenity mix, and rent growth strategy. A 182-unit asset might budget $1.5 million to $3.3 million in CapEx, with 40 to 60 percent directed to unit interiors (flooring, cabinetry, appliances) and 20 to 40 percent to common areas and systems. Lenders require a detailed CapEx budget 90 days into the loan and reserve the right to escrow funds or adjust LTV if overruns exceed 10 to 15 percent.
Most bridge lenders offer two 6 month extension options (total 36 months) at an additional 50 to 75 basis points per extension. Extensions are typically approved only if stabilization milestones have been reached (rent growth, occupancy targets) and the exit refinance is clearly in process. After the initial 36 month period, borrowers must refinance into permanent debt or face a higher default rate (often 12 to 15 percent) and accelerated amortization, making extensions less common than planned refinances.


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