Loan Size Example

$3 Million Bridge Loan for Atlanta Multifamily

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $3 million multifamily bridge loan in Atlanta represents a core value-add play in a market where rents have grown 4 to 6 percent annually and cap rates remain compressed in the 4.5 to 5.5 percent range for stabilized assets. At this loan size, borrowers are typically acquiring Class B or Class C garden-style apartments in secondary submarkets like East Atlanta, College Park, or Marietta and funding 12 to 24 month repositioning programs. Lenders in this bucket split between specialty bridge debt funds offering non-recourse execution at 70 to 75 percent LTC and regional banks lending at 60 to 65 percent LTC with recourse requirements. Pricing lands in the 9.0 to 9.5 percent range on a SOFR-plus-spread basis, with duration risk and exit certainty driving rate assignment.

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Capital Stack

What a $3M Multifamily Bridge Capital Stack Looks Like

The $3 million bridge stack in Atlanta typically layers specialty debt funds as the senior tranche because they move faster and accept non-recourse wrap, while a smaller mezz or co-lending arrangement with a regional bank can fill leverage if the sponsor brings strong operator credentials or a pre-leasing commitment. Sponsor net worth, track record in the Atlanta market, and clarity on the stabilization exit (agency refinance at 80 percent LTV or permanent holdout) are the deciding factors in lender selection.

Capital Source	Rate / Cost	Size / LTV	Notes
Specialty bridge debt fund (non-recourse)	9.0 to 9.5 percent floating on SOFR plus 400 to 450 basis points	$2.1 to $2.25 million at 70 percent LTC on a $3 to $3.2 million total capitalization	Senior lien, interest reserves funded, 24 to 36 month term with two 6 month extension options, exit cap rate assumption of 5.0 to 5.5 percent built into underwriting
Regional bank co-lender or mezz (recourse)	9.5 to 10.25 percent fixed or floating, plus 2 to 3 percent origination	$750,000 to $900,000 at 60 to 65 percent LTC, subordinate to fund senior	Recourse to sponsor and guarantor, typically held to maturity or refinanced into agency at stabilization, shorter 18 to 24 month initial term common
Sponsor equity or seller carry (mezzanine or preferred return)	7.0 to 8.5 percent preferred return or performance-based coupon	$250,000 to $400,000, fills gap to total project cost including CapEx and reserves	Sponsor typically retains 10 to 20 percent equity cushion, may include contingent equity call if leasing or value-add misses timeline
Agency permanent refinance (exit vehicle)	Target of 5.25 to 5.75 percent fixed at 80 percent LTV upon stabilization	$2.4 to $2.5 million based on 12 to 18 month NOI at 4.75 to 5.0 percent exit cap	Planned exit, not part of initial capital stack; bridge is cleared when pro forma stabilized NOI and rent roll support agency approval

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 $3M Multifamily Bridge Deal

The typical sponsor for a $3 million Atlanta multifamily bridge has $5 to $15 million in liquid net worth, five to ten completed value-add deals (not necessarily all in Atlanta), and a dedicated operations team or property management relationship in place before closing. Motivations are split between acquire-and-reposition (new to Atlanta or a new submarket) and refinance-a-legacy-acquisition that needs a CapEx push to unlock agency financing. These are experienced operators who understand the 18 to 24 month leasing cycle and can credibly model in-place to stabilized NOI uplift of 15 to 25 percent through unit mix optimization, rent growth, and operating expense control.

From the CLS CRE Pipeline

A Real $3M Example

CLS CRE closed a $3.15 million bridge for a 124 unit garden complex in the East Atlanta submarket in Q3 2025, originated on behalf of a sponsor with three prior value-add transactions in the Southeast region. The asset carried in-place NOI of $210,000 on a mixed rent roll averaging $985 per unit; the sponsor's business plan targeted $285,000 stabilized NOI within 20 months through $1.8 million of unit renovations, common area upgrades, and leasing at $1,150 to $1,225 per unit. Bridge debt funded at $2.2 million (70 percent LTC on a $3.15 million all-in basis) from a specialty fund at 9.25 percent SOFR-plus, with a 24 month initial term and two 6 month extensions. The sponsor contributed $650,000 equity and sourced a $300,000 mezzanine commitment from a regional bank at 9.75 percent fixed. At month 18, in-place occupancy reached 91 percent and monthly rent was $1,165 average; the sponsor locked agency financing at 5.5 percent fixed for $2.48 million and cleared the bridge with a cash-out of $180,000 to equity.

Anonymized. All deal references protect borrower and lender identity.

FAQ

$3M Bridge Loan Atlanta Multifamily FAQ

Specialty bridge debt funds typically offer 70 to 75 percent LTC non-recourse, while regional bank balance sheet lenders stay at 60 to 65 percent LTC with recourse. For a $3 million loan, expect total project capitalization (land, acquisition, CapEx, reserves) between $4.0 to $4.5 million, with the bridge covering the acquisition and a portion of CapEx, with sponsor equity funding the gap.

From complete application to funding, specialty bridge lenders target 30 to 45 days, assuming a clean sponsor credit, stabilized property fundamentals, and clear exit strategy. Regional bank co-lenders can add 10 to 15 days for underwriting and committee review. The Atlanta market is competitive enough that lenders move fast for well-packaged deals.

Bridge lenders build a 5.0 to 5.5 percent exit cap rate assumption into underwriting, which means stabilized NOI can sustain a slightly softer lease-up without forcing a liquidation. If the sponsor has invested CapEx and improved the unit product, agency lenders will refinance at a lower cap rate even on slower rent growth. Extension options (typically two 6 month periods) also allow the sponsor time to lease and stabilize without a forced sale.

The senior tranche from a specialty debt fund is typically non-recourse, but any mezz, co-lender, or bank portion carries full recourse to the sponsor and guarantor. Most deals layer both sources, so the sponsor is contingently liable for the bank mezz or co-lender position. This is standard market structure for deals of this size.

Agency lenders in Atlanta are comfortable with exit cap rates of 4.75 to 5.25 percent for stabilized multifamily, depending on location (close-in submarkets like Buckhead command tighter caps; secondary areas like Marietta or College Park trade at wider caps). A sponsor should model stabilized NOI at 80 percent occupancy and run the math at both 5.0 percent and 5.25 percent to size the refinance amount and ensure enough cash flow to cover extension costs if timing slips.

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$3 Million Bridge Loan for Atlanta Multifamily

What a $3M Multifamily Bridge Capital Stack Looks Like

Who Closes a $3M Multifamily Bridge Deal

A Real $3M Example

$3M Bridge Loan Atlanta Multifamily FAQ

Get a Quote on Your $3M Deal

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