$5M Bridge Loan Miami Multifamily | Commercial Lending Solutions 
Loan Size Example

$5 Million Bridge Loan for Miami Multifamily

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $5 million multifamily bridge loan in Miami represents a mid-market value-add play on a garden-style or mid-rise asset, typically targeting 70 to 150 units in urban Miami or nearby submarkets. In 2026, these loans price around 9.50 percent on a SOFR-plus basis, reflecting higher leverage (70 to 75 percent LTC) and shorter duration than agency debt. Lenders range from specialty bridge debt funds seeking non-recourse structures to regional and national banks willing to hold balance sheet exposure on a recourse or limited-recourse basis. The typical hold is 24 to 36 months, with exit into agency refinance at stabilization the primary payoff strategy.

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Capital Stack

What a $5M Multifamily Bridge Capital Stack Looks Like

A $5 million bridge in Miami typically stacks as a single senior or unitranche structure from one lender, avoiding the complexity and cost of junior pieces. Specialty bridge debt funds dominate this size because they accept higher leverage, move quickly, and require minimal cash equity; bank balance sheet lenders are secondary players here, usually at lower LTC and higher equity requirement. Lender selection hinges on leverage appetite, recourse tolerance, timeline (30 to 45 days preferred), and willingness to underwrite aggressive value-add business plans with tight CapEx and rent-growth assumptions.

Capital Source Rate / Cost Size / LTV Notes
Specialty bridge debt fund (non-recourse or carve-out recourse) 9.25 to 9.75 percent all-in (SOFR + 325 to 375 basis points) $3.75M to $5M (70 to 75 percent LTC on as-is or post-CapEx value) Primary lender for this size. Accepts 15 to 25 percent sponsor cash equity. Minimal financial reporting during hold. Loan-to-cost driven; exit cap rate and stabilized NOI are critical underwriting metrics. 24 to 36 month term with one or two 12-month extension options.
Regional bank balance sheet (recourse or limited recourse) 8.75 to 9.50 percent all-in (SOFR + 275 to 350 basis points) $2.5M to $3.5M (60 to 65 percent LTC, higher equity requirement) Secondary option. Slower underwriting (45 to 60 days). Requires stronger sponsor resume and cash-on-cash guarantees. Recourse to sponsor or carve-outs for fraud, mismanagement, environmental. Lower leverage but tighter rates than debt funds.
Credit union or small-balance commercial lender (recourse) 8.50 to 9.25 percent all-in (SOFR + 250 to 325 basis points) $1.5M to $3M (55 to 65 percent LTC) Tertiary option for sponsor-friendly terms. Rare at $5M unless blended with other sources. Full personal recourse typical. Better for stabilized assets than aggressive value-add.
Equity co-investor or mezzanine lender (secondary) 15 to 20 percent IRR (preferred return or promote split) $500K to $1M (10 to 20 percent of total capital) Occasionally used to reduce sponsor equity burden. Sits behind senior debt, ahead of equity. Provides liquidity and flexibility. More common in larger Miami deals ($10M+) but available in smaller structures. Exit typically via refinance payoff or sale.

Pricing reflects active CLS CRE quote pipeline as of April 2026. Specific deal pricing depends on sponsor, property, and structure.

Sponsor Profile

Who Closes a $5M Multifamily Bridge Deal

Typical sponsors at the $5 million bridge level in Miami are mid-market operators with $25 million to $100 million in total net worth, 5 to 15 closed multifamily deals, and direct property management experience or a proven third-party operator partner. They are frequently refinancing an existing stabilized or partially occupied asset, acquiring off-market deals from local owners, or executing a defined value-add strategy (unit upgrades, rent recovery, operational restructuring) in submarkets like Wynwood, Buena Vista, Allapattah, or Coral Gables. Debt fund and bank lenders expect 15 to 25 percent cash equity, 12 to 24 month hold assumptions, and a clear exit into agency or permanent take-out financing.

From the CLS CRE Pipeline

A Real $5M Example

In late 2023, CLS CRE placed a $5.1 million bridge for a Miami-based operator on a 94-unit mid-rise in the Wynwood corridor. The asset was acquired off-market at an 8.2 percent in-place cap rate with significant deferred maintenance and 78 percent occupancy. We structured the deal at 72 percent LTC with a specialty bridge debt fund at 9.48 percent all-in, 30-month initial term, with a one-year extension option. The sponsor committed to $1.8 million in unit upgrades and amenity renovation, targeting 92 percent stabilized occupancy and 6.5 to 7.0 percent stabilized cap rate within 24 months. The loan closed in 38 days; the borrower refinanced into agency debt 26 months later at a 5.15 percent rate, capturing the value-add gains and exiting the bridge early without penalty.

Anonymized. All deal references protect borrower and lender identity.

FAQ

$5M Bridge Loan Miami Multifamily FAQ

Miami's strong rent growth (5 to 8 percent annually), high in-migration, and persistent undersupply of Class B and C units support aggressive CapEx spend and rent-up timelines. Lenders view Miami markets as liquid and refinance-friendly, with multiple exit routes into agency or portfolio lenders. Additionally, the $5 million loan size fits many mid-market Miami submarkets, where in-place values are typically $6 million to $7 million per deal.
Debt funds explicitly price for and accept 70 to 75 percent LTC leverage, faster underwriting, and recourse carve-outs only for fraud or environmental. Banks remain more conservative (60 to 65 percent LTC) and require full financial guarantees, making them 50 to 150 basis points cheaper but slower and less flexible. At $5 million, sponsor equity needs are high enough to make bank recourse burdensome; debt fund non-recourse terms are more attractive.
Exit cap rate and stabilized NOI are the two highest-impact variables in bridge underwriting. Lenders typically underwrite a 5.75 to 6.50 percent exit cap rate for agency refinance, depending on submarket, asset quality, and sponsor track record. If the sponsor overshoots stabilized NOI or exit cap rate tightens below assumptions, there is refinance risk; lenders build 6 to 12 month extension cushion into initial terms to mitigate this.
Typical CapEx budgets range from $15,000 to $35,000 per unit ($1.4M to $3.3M on a 94-unit asset), focused on unit interiors, kitchen and bath updates, common area amenities, and systems repairs. Hold timelines of 24 to 30 months are standard, with the first 6 to 9 months front-loaded for construction and occupancy ramp. Lenders expect 2 to 3 percent annual rent growth beyond inflation during the hold; aggressive assumptions (7 to 10 percent annual growth) face higher scrutiny.
Specialty debt funds typically require carve-out recourse (fraud, environmental violation, bankruptcy fraud) but avoid full personal recourse. Banks and credit unions demand full personal guarantees from all equity owners above 10 to 20 percent ownership, plus cash-on-cash guarantees on debt service if DSCR drops below 1.10 times. Mezzanine or equity co-investors may also request a guarantor or pledge of equity. Most lenders accept limited recourse if sponsor equity is 20 percent or higher and track record is strong.


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