$3 Million Bridge Loan for Los Angeles Multifamily
By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions
A $3 million multifamily bridge loan in Los Angeles represents a mid-market value-add or repositioning play, typically structured as a 24 to 36 month non-recourse or limited-recourse facility. Specialty bridge debt funds and regional bank balance sheets dominate this segment, competing aggressively on leverage and speed. Pricing runs 9.50 percent all-in on a floating SOFR-plus-spread basis, with LTC ranging from 65 to 75 percent depending on the lender's underwriting of stabilized NOI and exit cap assumptions. Los Angeles multifamily sponsors use this size frequently to fund classroom-to-units conversions, cosmetic repositioning, or acquisition gaps on smaller 30 to 60 unit assets.
Get a Quote on Your $3M Deal →What a $3M Multifamily Bridge Capital Stack Looks Like
The capital stack for a $3 million multifamily bridge in Los Angeles typically layers one senior debt source, occasionally with a mezzanine piece if the sponsor brings equity. Specialty bridge funds prefer non-recourse structures and currently underwrite to 70 to 75 percent LTC on stabilized cash flow; regional banks offer slightly lower leverage (60 to 65 percent) but often faster closes and more flexibility on recourse carve-outs. Lender selection hinges on the exit strategy clarity, in-place versus pro forma rent roll credibility, and the sponsor's track record in the submarket.
Pricing reflects active CLS CRE quote pipeline as of April 2026. Specific deal pricing depends on sponsor, property, and structure.
Who Closes a $3M Multifamily Bridge Deal
Typical sponsors for a $3 million multifamily bridge in Los Angeles have $10 million to $50 million in liquid net worth and 3 to 7 prior bridge or value-add deals closed in California. They are often local or regional operators (West Coast based) with hands-on management capability, asset management experience, and established contractor and leasing agent relationships. Motivations include acquiring a smaller multifamily asset in secondary Los Angeles markets (Koreatown, El Segundo, Long Beach corridor), funding unit-level capital improvements and rent growth, or executing a quick repositioning before agency refinance.
A Real $3M Example
A sponsor acquired a 48-unit garden-style multifamily property in the Mid-City submarket with below-market in-place rents and deferred maintenance on exterior and common areas. The sponsor sourced a $2.1 million bridge loan at 9.50 percent from a specialty debt fund, representing 72 percent LTC on the stabilized NOI pro forma. The facility included 24 months of initial term plus two 12-month extension options, with a CapEx budget of $385,000 for exterior paint, roof repairs, and HVAC upgrades. The sponsor completed improvements in month 18, achieved 94 percent occupancy with average rents up 18 percent year-over-year, and executed an agency refinance into a 10-year fixed facility at 6.75 percent, retiring the bridge and capturing the value creation upside.
Anonymized. All deal references protect borrower and lender identity.
$3M Bridge Loan LA Multifamily FAQ
Get a Quote on Your $3M Deal
Tell us about your transaction. We will run it past lenders that actively fund this size and product type and send back terms within 48 hours.
Apply for Financing →