By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions
A $5 million bridge loan for Los Angeles multifamily typically funds an acquisition with planned value-add and refinance into agency at stabilization. Most $5M LA multifamily bridge deals fund through specialty bridge debt funds at 70 to 75 percent LTC, priced at SOFR + 425 to 600 basis points (approximately 9.0 to 11.0 percent all-in at current SOFR). Bank balance sheet bridge competes at lower leverage (60 to 65 percent LTC) with sponsor recourse and tighter coupon.
Get a Quote on Your $5M Deal →Most $5M LA multifamily bridge deals fund as a single senior loan from a debt fund. Mezz layered above bridge is rare at this size. The decision is between debt fund non-recourse execution at 70 to 75 percent LTC and bank balance sheet at 60 to 65 percent LTC with recourse.
Pricing reflects active CLS CRE quote pipeline as of April 2026. Specific deal pricing depends on sponsor, property, and structure.
Typical $5M LA multifamily bridge sponsors are mid-market private capital syndicates and private equity sponsors with 5 to 20 LA-area or California multifamily properties. Sponsor net worth typically $5M to $25M; liquidity $1M to $5M. The bridge loan funds acquisition and 12 to 24 month value-add (renovation, rent-up, occupancy stabilization) before refinance into Fannie Mae DUS or Freddie Mac Optigo. Most $5M LA value-add deals target 10 to 25 percent rental rate uplift through unit renovation and operational improvements.
On a 32-unit Class C 1970s vintage multifamily in South LA, the sponsor financed acquisition with a $5.5M bridge debt fund loan at SOFR + 475 (9.35 percent all-in at the time) at 73 percent LTC, with $1.2M of future funding for unit renovation. The 24-month bridge term carried a 12-month interest reserve. Renovation completed at month 14; lease-up reached 92 percent stabilized at month 22. Refinance into Freddie Mac Optigo Conventional at 5.85 percent fixed 10-year, 72 percent LTV closed at month 23, returning approximately $1.3M of capital to the sponsor.
Anonymized. All deal references protect borrower and lender identity.
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 →