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

$25 Million Bridge Loan for New York Multifamily

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $25 million bridge loan for multifamily in New York City represents a mid-market value-add or acquisition play, typically targeting 50 to 150 unit assets in core or secondary submarkets where agency financing is either unavailable or too slow to close. Borrowers in this size range access specialty bridge debt funds and regional bank balance sheets, with leverage ranging from 65 to 75 percent LTC depending on lender type and property condition. Rates on $25M multifamily bridge debt in the New York market currently land in the 8.75 to 9.50 percent range on a SOFR-plus basis, reflecting competitive tension between non-recourse debt funds and recourse bank programs. Exit strategy is always refinance into agency debt at stabilization, typically within 24 to 36 months.

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Capital Stack

What a $25M Multifamily Bridge Capital Stack Looks Like

Specialty bridge debt funds dominate the $25M multifamily bridge space in New York because they offer faster execution, flexible recapture language, and higher leverage than traditional bank partners. Borrowers with strong sponsor credentials and a clear value-add or repositioning plan typically anchor the deal at 70 to 75 percent LTC with a debt fund, supplemented by equity and sometimes a mezz layer. Bank balance sheet bridge programs remain viable for sponsors with strong relationships or recourse capacity, though they typically hold to 60 to 65 percent LTC and require more documentation.

Capital Source Rate / Cost Size / LTV Notes
Specialty bridge debt fund (non-recourse) SOFR plus 5.25 to 6.00 percent all-in, approximately 9.00 to 9.50 percent $17.5M to $18.75M (70 to 75 percent LTC) Fast close, flexible term extension, carve-out recourse for fraud and environmental. 3-year term with 1-year extension option. No prepayment penalty after 6 months.
Recourse bank balance sheet bridge SOFR plus 4.75 to 5.50 percent all-in, approximately 8.75 to 9.25 percent $15M to $16.25M (60 to 65 percent LTC) Full recourse to sponsor and guarantors. Slower close, more underwriting scrutiny. Preferred for sponsors with strong balance sheet and existing banking relationships. 24 to 30 month term.
Preferred equity or mezz tranche 12 to 15 percent current coupon plus 2 to 3 percent backend IRR kicker $3.75M to $5M (15 to 20 percent of stack) Used when sponsor has limited cash or when value-add plan requires higher leverage. Mezz sits junior to bridge, subordinate to agency refinance. Common for repositioning plays.
Sponsor equity Unlevered return target of 20 to 30 percent IRR at exit $3.75M to $6.25M (remaining capital stack) Fund-level or balance sheet equity. Covers CapEx reserve, working capital, and bridge rate differential on refinance. Higher equity contribution for less-seasoned sponsors.

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

Typical sponsors closing $25M multifamily bridge loans in New York have $100M to $500M+ in net worth, a track record of 5 to 15 plus completed acquisitions or value-add deals, and deep relationships in the New York multifamily market. They are often repeat borrowers seeking to execute fast closings on off-market acquisitions, transitional takeovers, or units requiring significant capital improvement and tenant migration. Motivations include portfolio expansion ahead of agency market dislocation, repositioning of aging stock in outer boroughs or secondary submarkets, and refinancing of maturing CMBS or bank debt into new bridge structures.

From the CLS CRE Pipeline

A Real $25M Example

CLS CRE arranged a $24.5 million bridge facility for a 94-unit value-add asset in the Williamsburg submarket, structured at 72 percent LTC with a specialty debt fund lender and a $3.2 million preferred equity piece. The sponsor, an experienced multifamily operator with prior New York City deals, planned 18 months of unit-level renovations, rent-up, and operational stabilization before a Fannie Mae or Freddie Mac refinance. The loan closed in 42 days at 9.05 percent all-in, with floating rate protection via a SOFR-plus-590 basis point structure. Within 30 months, the asset stabilized at 95 percent occupancy and a 15 percent NOI lift, and the borrower successfully exited into a 10-year agency loan at 4.65 percent with no prepayment penalty.

Anonymized. All deal references protect borrower and lender identity.

FAQ

$25M Bridge Loan NY Multifamily FAQ

Non-recourse debt funds typically offer 70 to 75 percent LTC, while recourse bank programs cap out at 60 to 65 percent. The spread reflects lender risk appetite and the depth of underwriting. Sponsors often layer in preferred equity or mezz to hit total leverage of 75 to 85 percent when capital constraints are tight.
Specialty debt funds can underwrite and close in 30 to 45 days, provided the borrower has clean title, current appraisal, and clear value-add thesis. Bank balance sheet programs typically require 45 to 75 days for full documentation, appraisal, and credit review. Agency-level due diligence is not required, so speed is a key competitive advantage of bridge debt.
Most bridge facilities include a 1-year extension option at a higher rate (typically 100 to 150 basis points over the initial rate) to provide a runway for market conditions to normalize or for the sponsor to pursue alternative capital sources. If the borrower cannot refinance or extend, the lender has the right to assume the property or foreclose, which is why exit strategy due diligence is so important at origination.
Most debt fund bridge loans have no prepayment penalty after 6 to 12 months of accrual, though some lenders charge a flat 1 to 2 percent defeasance fee if paid off early. Bank bridge programs may include 1 to 2 percent prepayment penalties throughout the term to protect yield. Always confirm penalty structure during rate quote phase.
Lenders require an updated appraisal, Phase I environmental, title commitment, current rent roll and 12 months of operating history, detailed business plan with unit-level and rent-up assumptions, sponsor financial statements and tax returns, and proof of equity funding. Some lenders also require borrower's liability and property insurance in place at closing, and a first-position security agreement on the property.


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