Loan Size Example

$5 Million Bridge Loan for New York Multifamily

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $5 million bridge loan for multifamily in New York represents the sweet spot for value-add operators seeking non-recourse or lightly recourse execution on mid-sized acquisitions or significant renovation plays. In the current environment, specialty debt funds and balance sheet bridge programs price these deals in the 9.25 to 9.75 percent range depending on leverage and sponsor strength. New York multifamily bridge lenders care deeply about exit strategy, in-place versus stabilized cash flow, and the quality of your CapEx plan. Most structures target a 24 to 36 month hold with extension options, positioning the exit refinance into agency debt once the asset stabilizes and rents reset.

Get a Quote on Your $5M Deal →

Capital Stack

What a $5M Multifamily Bridge Capital Stack Looks Like

At the $5 million level in New York, sponsors typically access specialty bridge debt funds first, as they offer higher leverage and full non-recourse structures that appeal to experienced operators comfortable with floating rate risk. Bank balance sheet bridge programs remain competitive for well-seasoned teams with proven track records, though they generally require partial recourse and tighter underwriting on the business plan. Lender selection hinges on sponsor equity strength, the quality of the asset, and whether you prefer certainty of execution over absolute rate optimization.

Capital Source	Rate / Cost	Size / LTV	Notes
Specialty bridge debt fund	SOFR plus 500 to 550 basis points, all-in 9.25 to 9.75 percent	$3.5 to $3.75 million, 70 to 75 percent LTC	Non-recourse, 36 month initial term with two 12 month extensions, extension fee 25 to 50 basis points per year. Funds typically require 25 to 30 percent equity and detailed CapEx schedule.
Regional bank balance sheet bridge	SOFR plus 475 to 525 basis points, all-in 9.00 to 9.50 percent	$3.0 to $3.25 million, 60 to 65 percent LTC	25 to 50 percent recourse to sponsor, 24 to 30 month term, accelerated payoff if property performs ahead of underwriting. Banks demand corporate guarantees and often impose prepayment yield maintenance.
Mezzanine equity provider	15 to 20 percent IRR preferred return, equity kicker	$1.0 to $1.5 million, covers CapEx and sponsor float	Common structure for sponsors with strong sponsorship pedigree but limited equity. Mezz sits below senior debt, absorbs early losses, and benefits from upside if exit exceeds stabilized basis.
Sponsor equity	At-risk capital, expected 25 to 35 percent return on exit	$500 thousand to $1.0 million minimum	Covers operational losses, lease-up shortfalls, and extended hold periods. Lenders scrutinize sponsor net worth and verify liquid reserves equal to 6 to 12 months bridge debt service.

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

The typical $5 million multifamily bridge sponsor in New York is an experienced operator with at least three to five completed value-add deals and a minimum net worth of $3 to $5 million. These sponsors often have regional or local market expertise, maintain relationships with property management firms or repositioning contractors, and are executing a clear value-add thesis: rent growth through operational improvements, unit renovations, amenity additions, or tenant mix optimization. Many are refinancing out of prior hard money or gap financing, or acquiring off-market deals where agency lending is not immediately available due to lease-up risk or below-market in-place rents.

From the CLS CRE Pipeline

A Real $5M Example

A 65 unit garden-style multifamily property in Long Island City, Queen's acquired with in-place rents at 65 percent of market. The sponsor secured a $5 million bridge at 9.50 percent all-in from a specialty debt fund, representing 73 percent LTC against an after-stabilized value of $6.8 million. The 28 month term included a 36 unit renovation plan focused on kitchen and bathroom upgrades, targeting a rent growth of 22 to 25 percent upon lease-up. The sponsor exited via a 30 year agency refinance at 6.10 percent after month 26, locking in a 180 basis point rate reduction and retiring the bridge ahead of the extension deadline. The value-add execution delivered a 4.2x equity return to the sponsor over the hold period.

Anonymized. All deal references protect borrower and lender identity.

FAQ

$5M Bridge Loan New York Multifamily FAQ

Specialty bridge debt funds typically offer 70 to 75 percent LTC, while regional bank programs max out at 60 to 65 percent. LTC is calculated against either the all-in stabilized value (agency lending comparable) or the as-is cost, depending on the lender. Your LTC will flex based on exit cap (typically 5.5 to 6.5 percent for multifamily), sponsor experience, and quality of the CapEx plan.

Plan for 25 to 35 percent of the total capitalization to come from sponsor equity and any mezzanine sources. On a $5 million bridge at 72 percent leverage, that implies roughly $1.0 to $2.0 million in equity depending on whether you're buying or stabilizing. Lenders will require proof of liquid reserves equal to 6 to 12 months of bridge debt service, or they will hold that amount in reserve from the loan proceeds.

Most $5 million bridges in New York carry an initial 24 to 30 month term with two 12 month extensions available at a cost of 25 to 50 basis points per extension. Extensions are generally conditional on maintained or improved occupancy and no payment defaults. If you exceed the maximum term, the entire loan accelerates, so exit planning and lease-up pacing are critical.

A 9.50 percent floating bridge costs roughly 300 to 350 basis points more than current agency fixed rates on stabilized multifamily. The value of the bridge is speed, flexibility, higher leverage, and the ability to execute a value-add plan before refinancing into agency debt. If your value-add IRR is 25 to 35 percent and you exit in 24 to 30 months, the cost of bridge debt is noise relative to the cash flow upside.

Most bridge lenders will extend your term (at a cost) and may allow you to roll additional CapEx into an amended loan if you have sufficient equity cushion and the property is performing reasonably. However, lenders reserve the right to accelerate the loan if occupancy falls below 80 percent or you breach other key covenants. This is why detailed CapEx budgeting, realistic lease-up projections, and adequate sponsor reserves are non-negotiable.

Get a Quote on Your $5M Deal

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 →

Or call us: 310.708.0690

$5 Million Bridge Loan for New York Multifamily

What a $5M Multifamily Bridge Capital Stack Looks Like

Who Closes a $5M Multifamily Bridge Deal

A Real $5M Example

$5M Bridge Loan New York Multifamily FAQ

Get a Quote on Your $5M Deal

Weekly Market Intelligence

Before You Go…

Thank You!