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

$3 Million Bridge Loan for Miami Multifamily

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $3 million multifamily bridge loan in Miami targets value-add apartment buildings where the sponsor is repositioning units, upgrading common areas, or stabilizing occupancy before refinance. At this size, borrowers typically access specialty bridge debt funds offering non-recourse structures at 70 to 75 percent LTC, or bank balance sheet bridges at 60 to 65 percent LTC with recourse. Rates in early 2026 float around SOFR plus 275 to 350 basis points, bringing all-in pricing to the 9.75 percent range, reflecting Miami's competitive multifamily market and moderate leverage profile. Terms run 24 to 36 months with extension options, sizing the capital to fund acquisition, renovation, and carry costs through lease-up or operational improvement.

Get a Quote on Your $3M Deal →
Capital Stack

What a $3M Multifamily Bridge Capital Stack Looks Like

Specialty bridge debt funds dominate the $3 million Miami multifamily space because they offer speed, certainty, and non-recourse optionality that suits value-add sponsors on tight timelines. Regional and community banks compete on rate and recourse terms for sponsors with strong balance sheets and local market presence, but debt funds typically close faster and require less documentation depth for deals under $5 million.

Capital Source Rate / Cost Size / LTV Notes
Specialty bridge debt fund SOFR plus 275 to 325 basis points (9.5 to 9.75 percent all-in) $2.1 to $2.25 million (70 to 75 percent LTC on $3 to $3.2 million value) Non-recourse or limited recourse, 24 to 36 month term with 6 to 12 month extension, floating rate, monthly interest-only payments
Regional bank balance sheet SOFR plus 300 to 350 basis points (9.75 to 10 percent all-in) $1.8 to $1.95 million (60 to 65 percent LTC) Full or partial recourse, fixed or floating option, 24 to 36 month term, require seasoned operating history or strong sponsor net worth
Mezzanine or preferred equity (junior piece) 12 to 15 percent coupon plus equity kicker $300k to $600k (10 to 20 percent of total deal cost) Subordinate to first mortgage, common when sponsors have limited cash equity, may include property management or lease-up contingencies
Sponsor cash equity Sponsor carry, no rate or coupon $300k to $600k (10 to 20 percent equity injection) Demonstrates skin-in-the-game, supports bridge lender confidence, typically required by debt funds at this leverage and deal size

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 Miami multifamily bridge is an experienced value-add operator with net worth of $2 to $5 million, a track record of 3 to 8 completed apartment repositionings, and strong relationships in Miami's Wynwood, Allapattah, or emerging submarket corridors. Motivations include acquiring a distressed or off-market building, refinancing a previous bridge ahead of schedule, or funding a rapid unit upgrade cycle to unlock rent growth. These sponsors often operate regionally across South Florida, have familiarity with FHA or conventional agency exit markets, and are comfortable with floating rate exposure during renovation and stabilization phases.

From the CLS CRE Pipeline

A Real $3M Example

A specialty bridge fund closed a $2.95 million non-recourse loan on a 28-unit class B apartment complex in Miami's Wynwood submarket, where the sponsor had acquired the property below market and planned a $450k unit upgrade program and leasing campaign. The loan carried a 9.65 percent floating rate (SOFR plus 300 basis points), a 72 percent LTC, 36 month term with a 12 month extension option, and a 9.5 percent exit cap reflecting agency refinance at 65 percent LTV post-stabilization. The sponsor achieved 92 percent occupancy within 16 months, rents grew 18 percent, and exited into a permanent mortgage nine months ahead of schedule at a lower rate, returning the bridge capital and funding a second Miami acquisition.

Anonymized. All deal references protect borrower and lender identity.

FAQ

$3M Bridge Loan Miami Multifamily FAQ

Most sponsors exit into agency financing (Fannie Mae, Freddie Mac, or FHA), assuming the property stabilizes to 90 to 95 percent occupancy and in-place NOI supports a 65 to 70 percent LTV refinance. The 36 month term provides 12 to 18 months of stabilization runway, with extension options covering slower lease-up or market delays. Some sponsors sell the property outright to a buy-and-hold investor, using bridge proceeds to pay down mezzanine and fund the next deal.
Debt funds typically do not require a presale or permanent loan commitment upfront, but expect a credible exit assumption within the underwriting. Lenders stress-test exit rates and cap rates based on 90 day market trending and comparable refinances, usually assuming a 50 to 75 basis point premium above current agency market rates. Banks are more conservative and may require preliminary rate lock or lender pre-qualification letters.
Value-add Miami multifamily CapEx ranges from $8k to $15k per unit for mid-level renovations (finishes, appliances, HVAC), or $15k to $25k per unit for deeper repositioning (structural work, amenity upgrades, facade). A 25 to 35 unit building on a $3 million bridge typically allocates $300k to $700k for renovation, with lenders requiring detailed scopes, bids, and title draws to control execution risk.
Borrowers carry interest rate risk during the bridge period; if SOFR rises 100 to 150 basis points between closing and refinance, actual carry costs increase materially. Most sponsors hedge this with a rate cap (3 to 6 months prior to expected exit) or select a lender offering fixed rate options at a 25 to 50 basis point premium. The exit cap communicated to lenders (typically 9.5 to 10 percent) is important because it sets refinance feasibility and affects the sponsor's hold period.
Lenders stress both metrics: in-place NOI is used to calculate current debt service coverage and bridge capacity, while stabilized NOI (pro forma post-renovation and lease-up) supports the agency exit valuation. Miami debt funds focus heavily on stabilized NOI because value-add upside drives the equity return and supports refinance sizing. Sponsors should prepare detailed operating budgets showing pre-and post-renovation leasing velocity, market rents, and expense assumptions to demonstrate credible stabilization within 16 to 24 months.


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 →
Or call us: 310.708.0690

Weekly Market Intelligence

Rate updates, deal insights, and capital markets analysis. One email per week. Unsubscribe anytime.

No spam. No selling your data. Just market intelligence from a working broker.

Need financing? Apply in 2 minutes. Response within 24 hours.
Apply Now →
📈

Before You Go…

Get matched with the right lender from our network of 1,000+ capital sources.

Or call us: 310.708.0690

No spam. Unsubscribe anytime.