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

$3 Million Bridge Loan for Dallas Multifamily

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $3 million multifamily bridge loan in Dallas represents a lean but competitive financing vehicle for small to mid-sized value-add projects across the Metroplex. These loans typically carry SOFR-plus spreads in the 500 to 650 basis point range, landing all-in rates near 9.25 percent in current market conditions. Leverage runs 70 to 75 percent for specialty debt funds and 60 to 65 percent for bank balance sheets, making the $3M ticket attractive to borrowers holding stabilizing or pre-stabilized multifamily assets with clear exit strategies. Dallas remains a preferred market for bridge capital due to consistent absorption, population growth, and lender familiarity with local multifamily fundamentals.

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Capital Stack

What a $3M Multifamily Bridge Capital Stack Looks Like

The $3M bridge stack in Dallas is typically dominated by specialty debt funds and regional bank balance sheet lenders, with debt funds holding the lion's share due to their comfort with non-recourse structures and faster execution. Lender selection hinges on the borrower's experience profile, asset class within multifamily (garden, mid-rise, workforce), and the timeline to stabilization or exit. Banks may dominate deals where the sponsor brings strong local operating history or where recourse appetite is higher; debt funds typically step in for more aggressive value-add programs or sponsors without extensive institutional track records.

Capital Source Rate / Cost Size / LTV Notes
Specialty bridge debt fund SOFR plus 525 to 625 basis points (9.0 to 9.5 percent all-in) $2.1M to $2.25M (70 to 75 percent LTC) Non-recourse, 24 to 36 month term with two 6-month extension options, floating rate, requires stabilized NOI exit or refinance commitment
Regional bank balance sheet SOFR plus 575 to 650 basis points (9.25 to 9.75 percent all-in) $1.8M to $1.95M (60 to 65 percent LTC) Full recourse, preference for sponsors with Dallas market presence and operating experience, 24 to 30 month expected term, approval in 15 to 20 days
Mezzanine or sponsor equity Preferred return or equity kicker $750K to $900K (25 to 30 percent of deal) Absorbs downside, funds CapEx and soft costs, typically held by sponsor or co-investor; structured to release at stabilization or refi milestone

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 $3M multifamily bridge in Dallas carries $15M to $50M in net worth, has closed at least two to four prior multifamily deals, and maintains operating or asset management relationships within the region. Motivations range from acquiring off-market garden or mid-rise assets and implementing light to moderate value-add plans to refinancing out of maturing loans or transitioning out of agency debt ahead of rate resets. This borrower segment values speed, flexibility, and non-recourse or limited-recourse options but is comfortable with floating-rate risk and annual rate resets tied to SOFR movements.

From the CLS CRE Pipeline

A Real $3M Example

CLS CRE closed a $3M bridge loan on a 180-unit garden-style community in the Farmers Branch submarket, originated at 70 percent LTC with an all-in rate of 9.25 percent SOFR-plus. The sponsor acquired the asset at a below-market cap rate, brought in a third-party operating partner, and executed a 14-month repositioning plan focused on unit turnover, rent growth, and amenity upgrades. The borrower exited via a conventional agency refi at month 18, locking in a 6.15 percent fixed rate on $2.1M, delivering the lender full payoff and the sponsor $300K+ in equity capture. The floating-rate bridge proved ideal for this timeline, avoiding agency prepay penalties and allowing the sponsor to move quickly while market conditions supported refinance execution.

Anonymized. All deal references protect borrower and lender identity.

FAQ

$3M Bridge Loan Dallas Multifamily FAQ

Standard terms run 24 to 36 months with two 6-month extension options, totaling up to 48 months if extensions are exercised. Most specialty debt funds expect exit via refinance, prepayment, or sale by month 30, with extensions reserved for sponsors demonstrating steady progress toward stabilization. Extensions typically carry a 50 to 100 basis point rate step-up to incentivize timely exit.
Bridge rates at 9.25 percent all-in run 250 to 350 basis points higher than current agency fixed-rate financing (6.0 to 6.75 percent range), reflecting the bridge lender's assumption of execution and market risk. However, the bridge's floating-rate flexibility, faster closing (10 to 15 days vs 30 to 45 for agency), and non-recourse structure often justify the premium for sponsors on aggressive timelines or with insufficient trailing rent rolls for agency qualification.
Debt funds and banks typically require $150K to $300K in CapEx reserves funded upfront or retained from loan proceeds, depending on the property condition and value-add scope. Soft costs (taxes, insurance, legal, accounting) may draw from the CapEx reserve or sponsor equity, with lenders requiring monthly reconciliation and proof of spend alignment to the original business plan.
Most bridge structures include a release or substitution clause allowing the sponsor to refinance or prepay without prepayment penalty, though lenders typically require 30 to 60 days' notice and pro-rata interest payment through the release date. If the sponsor wants to substitute collateral (e.g., sell the stabilized asset and move the bridge to a new property), this requires explicit lender consent and often triggers a new underwriting review and possible rate adjustment.
The primary exit is refinance into agency or portfolio lending at stabilization, with expected LTV stepping down to 65 to 70 percent as NOI improves. Secondary exits include property sale or cash-out refinance into a longer-term product; sponsors must demonstrate a credible path to agency-eligible metrics (typically 2.0x DSCR on stabilized NOI, 1-year trailing history) by month 18 to avoid extension discussions or forced payoff.


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