$3 Million Bridge Loan for Phoenix Multifamily
By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions
A $3 million multifamily bridge loan in Phoenix represents a solid mid-market entry point for value-add investors targeting the city's core submarkets. In 2026, these loans are priced in the 9.00 to 9.50 percent range on a SOFR-plus floating basis, reflecting current debt fund competition and the lower leverage available on smaller balance sheets. Phoenix's sustained population growth and renter demand make bridge capital readily available from both specialty debt funds and select regional banks, though availability depends heavily on property condition, sponsor track record, and exit clarity. The 24 to 36 month term structure allows sponsors time to execute meaningful operational improvements before refinancing into agency debt at stabilization.
Get a Quote on Your $3M Deal →What a $3M Multifamily Bridge Capital Stack Looks Like
Lenders for $3 million bridge deals in Phoenix split between two main sources: specialty bridge debt funds offering 70 to 75 percent loan-to-cost non-recourse structures, and regional bank balance sheets providing 60 to 65 percent recourse loans. Sponsor balance sheet strength, sponsorship experience, and market familiarity typically drive the choice, though debt fund capital has become the default for investors seeking maximum leverage and non-recourse liability protection.
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 closing $3 million bridge deals in Phoenix possess $5 million to $15 million in liquid net worth and have completed 3 to 8 prior multifamily transactions. They are often mid-market operators focused on Class B to Class C property repositioning in Phoenix's secondary markets (Ahwatukee, South Phoenix, Northwest Phoenix) where entry pricing remains below $200,000 per unit. Common motivations include acquiring distressed or out-of-favor properties, refinancing prior agency loans at lower leverage, or executing unit-level renovation and rent growth programs before stabilized refinance.
A Real $3M Example
CLS closed a $3.1 million bridge facility in mid-2024 for a 114-unit garden-style community in South Phoenix targeting a two-year hold with $425,000 in unit-level renovations and rent growth from $1,240 to $1,550 per month. The loan priced at 9.35 percent on a SOFR-plus basis at 72 percent LTC from a specialty debt fund, with full non-recourse structure and a 7.75 percent exit rate cap. The sponsor, a repeat borrower with prior Phoenix multifamily experience, entered stabilized agency refinance in month 22 at 6.85 percent fixed rate, realizing an estimated $240,000 cash benefit from rate buydown and amortization. The debt fund syndication closed in 14 days with minimal documentation requirements given sponsor track record.
Anonymized. All deal references protect borrower and lender identity.
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