$40 Million Ground-Up Multifamily Construction in Los Angeles
By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions
A $40 million ground-up multifamily construction loan in Los Angeles typically finances a 100 to 180 unit market-rate multifamily project at total project cost of $60M to $80M+. LA ground-up faces specific regulatory and structural challenges including Measure ULA exposure, Local Law equivalents, and entitlement timelines. Most $40M LA ground-up loans fund through specialty bridge debt funds at 65 to 75 percent LTC with agency forward commitment.
Get a Quote on Your $40M Deal →What a $40M Ground-Up Multifamily Construction Capital Stack Looks Like
$40M LA ground-up multifamily construction stacks combine senior construction debt with institutional equity and agency forward commitment.
Pricing reflects active CLS CRE quote pipeline as of April 2026. Specific deal pricing depends on sponsor, property, and structure.
Who Closes a $40M Ground-Up Multifamily Construction Deal
Typical $40M LA ground-up sponsors are LA-focused multifamily developer-operators with completed LA projects. Sponsor net worth $25M to $150M+. LA-specific underwriting items include AB 2011 streamlining, soft story retrofit, AB 1482 rent caps, and Measure ULA on planned exit.
A Real $40M Example
On a $42M ground-up 142-unit market-rate multifamily construction in West LA, the sponsor was an LA-focused developer with 6 completed multifamily projects. Capital stack: $32M of construction debt at SOFR + 525 (9.85 percent all-in), $14M of common equity from LA family office, $2M sponsor co-invest. Fannie Mae forward commitment at 5.95 percent fixed 10-year for delivery at month 26. Construction took 24 months.
Anonymized. All deal references protect borrower and lender identity.
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