$3 Million Bridge Loan for New York Multifamily
By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions
A $3 million bridge loan for multifamily in New York represents the sweet spot for value-add operators targeting smaller Class B and C assets across the five boroughs. At this loan size, borrowers can access specialty debt funds offering 70 to 75 percent LTC on a non-recourse basis, or regional and national banks willing to go 60 to 65 percent LTC with recourse. Rates in this market typically run 9.5 to 10.25 percent on a SOFR-plus-spread basis, depending on the lender type, property condition, and exit strategy clarity. These loans work best for 24 to 36 month hold periods, with the expectation that the borrower will stabilize the asset and refinance into agency debt at maturity.
Get a Quote on Your $3M Deal →What a $3M Multifamily Bridge Capital Stack Looks Like
At the $3 million level, specialty bridge debt funds dominate the capital stack in New York multifamily because they offer the leverage and non-recourse terms that smaller sponsors need to make their economics work. Bank balance sheet bridge programs are also active at this size, particularly for borrowers with existing banking relationships or stronger balance sheets, though they typically require recourse and come in at lower LTC. The choice between debt fund and bank almost always hinges on the sponsor's willingness to accept recourse and the property's current loan-to-value reality.
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
The typical sponsor at the $3 million bridge level in New York has net worth ranging from $5 to $15 million, prior experience with one to three multifamily acquisitions or refinances, and a track record of stabilizing value-add properties. These operators often come from property management, construction, or prior real estate finance backgrounds and are motivated by either cash-out refinances on existing stabilized assets or first-time acquisitions of off-market or lightly distressed buildings. They understand underwriting, have working capital set aside for cost overruns, and are generally hungry to scale their portfolio without taking on agency debt with strict loan-level covenants.
A Real $3M Example
CLS CRE recently closed a $3.05 million bridge loan for a 48-unit multifamily property in a central Brooklyn submarket. The property was trading at a 4.5 percent cap rate on in-place NOI of $195,000, but the sponsor had identified $275,000 in annual rent growth opportunity through unit renovations, amenity upgrades, and normalized operating expenses. We structured the deal at 72 percent LTC, 9.75 percent all-in rate on a SOFR-plus basis, with a 30-month term and one 12-month extension option. The specialty debt fund lender took the deal non-recourse, and the sponsor closed within 35 days and began rent roll-up, successfully stabilizing to $470,000 NOI by month 20 before exiting into a fixed-rate agency refinance at 5.95 percent.
Anonymized. All deal references protect borrower and lender identity.
$3M Bridge Loan NY 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 →