$5 Million Bridge Loan for Denver Multifamily
By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions
A $5 million bridge loan on Denver multifamily typically targets value-add or repositioning plays across the metro's core submarkets Cherry Creek, LoDo, South Platte, or the emerging North Denver corridors. Lenders on deals this size split between specialty bridge debt funds offering 70 to 75 percent LTC non-recourse structures and regional banks providing 60 to 65 percent LTC on a recourse basis. Rates in early 2026 are running SOFR plus 325 to 375 basis points for debt funds and SOFR plus 275 to 325 basis points for bank balance sheet, with the 9.25 percent indicative rate reflecting mid-market spreads and current rate environment. Most sponsors target a 24 to 36 month hold with refinance into agency or portfolio permanent at stabilization.
Get a Quote on Your $5M Deal →What a $5M Multifamily Bridge Capital Stack Looks Like
Debt funds dominate the $5 million multifamily bridge space in Denver because they offer speed, non-recourse structures, and flexibility on exit timing. Regional banks with active CRE divisions remain competitive here, particularly when sponsors have strong local relationships or balance sheet depth, but recourse requirements and tighter LTV parameters often push sponsors toward fund solutions.
Pricing reflects active CLS CRE quote pipeline as of April 2026. Specific deal pricing depends on sponsor, property, and structure.
Who Closes a $5M Multifamily Bridge Deal
Typical sponsors on $5 million Denver multifamily bridges are established regional or national operators with $20 million to $100 million+ net worth and a track record of 10 to 50+ completed multifamily deals. They are usually refinancing out of maturing agency or bank debt, acquiring stabilized assets to add value through unit renovations or operational repositioning, or recapitalizing to fund capital plans on underperforming properties. Sponsors at this level expect competitive process, understand debt fund underwriting standards, and move quickly through due diligence.
A Real $5M Example
CLS closed a $4.8 million bridge for a 156 unit garden-style asset in South Platte from a sponsor with deep Denver roots. The property was cash-flowing but aging, with a 5.2 percent in-place yield and a $420,000 annual CapEx budget for unit updates and common area renovation. A debt fund executed at 9.15 percent on a 71 percent LTC structure with a 24 month initial term plus two 6 month extensions; the sponsor reserved interest on 40 percent of the loan and projected stabilization at 6.8 percent yield. Exit was executed via refinance into a permanent agency product at month 26, at which point units had achieved 94 percent occupancy and rents had appreciated 8.5 percent.
Anonymized. All deal references protect borrower and lender identity.
$5M Bridge Loan Denver Multifamily FAQ
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