$3M Bridge Loan Charlotte Multifamily | Commercial Lending Solutions 
Loan Size Example

$3 Million Bridge Loan for Charlotte Multifamily

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $3 million multifamily bridge loan in Charlotte represents a mid-sized value-add play targeting workforce housing or secondary market apartment stock in strong neighborhoods. In the current environment, specialty bridge debt funds and bank balance sheet lenders are both active at this level, with non-recourse debt funds pricing around 9.25 percent all-in and banks offering recourse alternatives in the 8.75 to 9.50 percent range. LTC on these deals typically runs 70 to 75 percent for debt funds and 60 to 65 percent for bank products, reflecting Charlotte's stable multifamily fundamentals and the borrower's ability to execute a rehab and stabilization plan within 24 to 36 months.

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Capital Stack

What a $3M Multifamily Bridge Capital Stack Looks Like

At the $3 million size, specialty bridge debt funds and regional bank balance sheet programs dominate Charlotte multifamily bridge lending. Debt funds generally take the lead when borrowers want non-recourse leverage and can tolerate floating rate risk, while banks step in when sponsors prefer recourse flexibility or have existing relationships in the Carolinas region.

Capital Source Rate / Cost Size / LTV Notes
Specialty bridge debt fund (non-recourse) 9.25 percent all-in, SOFR-based floating plus 425 to 500 bps $2.25 million to $2.75 million (70 to 75 percent LTC) Non-recourse, 24 to 36 month term with 12 month extension option, no prepayment penalty after 12 months, cash flow sweep into principal if exit cap is breached
Regional bank balance sheet (recourse) 8.75 to 9.50 percent, SOFR plus 375 to 450 bps $1.8 million to $1.95 million (60 to 65 percent LTC) Recourse to borrower and guarantor, 30 to 36 month term, more flexible rate floors, faster credit decision, relationship pricing available
Hybrid or mezz structure (if leveraging to 80 percent LTC) 10.50 to 11.50 percent on mezz slice, SOFR plus 600 to 700 bps $600,000 to $1.0 million (mezz position on $3 million total) Mezzanine lender junior to bridge debt, used by sponsors needing higher leverage or lower equity check, requires full recourse, typical on higher-risk value-add scenarios
Sponsor equity Target 20 to 30 percent of total capitalization $600,000 to $900,000 Held by sponsor or co-investors, covers CapEx shortfalls, covering shortfalls between in-place NOI and debt service, ensures alignment with lender on rehab timeline

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

Typical sponsors closing a $3 million multifamily bridge in Charlotte are experienced regional operators with 5 to 15 previous bridge or value-add transactions and liquid net worth between $2 million and $5 million. They often acquired a stabilized or Class B property at a discount or are refinancing an existing loan into bridge capital to unlock equity for CapEx investment. Their motivation centers on a clear 24 to 36 month value-add thesis: renovating units, upgrading common areas, stabilizing occupancy, and exiting into conventional Fannie Mae or Freddie Mac financing or a permanent loan portfolio.

From the CLS CRE Pipeline

A Real $3M Example

CLS CRE closed a $2.8 million bridge facility for a 92 unit apartment community in the East Charlotte submarket with an in-place occupancy of 78 percent and deferred maintenance in HVAC and exterior walls. The borrower, a three-time value-add operator in the Carolinas, secured a floating rate facility at 9.18 percent (SOFR plus 465 basis points) from a specialty bridge debt fund on a 28 month term with a 12 month extension option. The LTC was 72 percent, and the sponsor funded $1.1 million in equity to cover a $950,000 CapEx budget and lease-up reserves. Within 18 months the property reached 94 percent occupancy, rents grew 8 percent, and the borrower successfully refinanced into a 10 year fixed rate loan at a permanent lender, retiring the bridge and realizing a 22 percent equity multiple on the deal.

Anonymized. All deal references protect borrower and lender identity.

FAQ

$3M Bridge Loan Charlotte Multifamily FAQ

SOFR is currently around 5.00 percent, and bridge debt funds are pricing spreads of 425 to 500 basis points for mid-sized multifamily loans with 70 to 75 percent leverage. A 9.25 percent all-in rate reflects a floating index environment, the risk of value-add execution, and the borrower's ability to stabilize and exit within 24 to 36 months. Charlotte's strong multifamily market fundamentals, low vacancy, and consistent rent growth support this pricing relative to primary markets.
The primary exit is a refinance into agency (Fannie Mae or Freddie Mac) fixed rate financing once the property reaches 75 to 85 percent occupancy, stabilized rents, and a trailing 12 month NOI floor. A secondary exit is a cash-out refinance with a life insurance company or bank portfolio lender if the borrower wants to extend duration or pull additional equity. Sponsor sale is a third option, though less common in a rate environment where permanent financing is available.
Typical budgets range from $250,000 to $500,000 depending on unit count and condition, generally $2,500 to $5,500 per door for cosmetic rehab, HVAC replacement, or amenity upgrades. On a 75 unit property, a $400,000 CapEx budget is realistic for unit interiors, exterior paint, and common area refreshment. The sponsor should reserve 10 to 15 percent of the CapEx budget as contingency and fund lease-up reserves to cover shortfalls in debt service during the ramp phase.
It depends on the lender and the sponsor's balance sheet. A debt fund will typically require 2 to 3 prior bridge or value-add transactions, demonstrated team depth, and liquid reserves equivalent to 6 to 12 months of debt service. A regional bank with existing relationships in Charlotte may make an exception for a first-time sponsor with strong net worth (2 to 3 million dollars) and an experienced third party property manager. Credit and lender appetite matter more than deal count in this size range.
Most bridge loans include one 12 month extension option at par rate or a modest upfront fee (0.25 to 0.50 percent of the loan balance). If a second extension is needed, most lenders reprice the spread or require a rate step up of 50 to 150 basis points. Repeated extensions are a red flag to permanent lenders and may impact the refinance rate or pricing at a new bridge lender.


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