What occupancy triggers the refinance from bridge to permanent?

Most CMBS permanent lenders require 90%+ occupancy sustained for 3-6 months with NOI supporting 1.25x DSCR at the new loan amount. Some conduits will underwrite with 85%+ if the trend is strong and remaining units are pre-leased at market rates.

Can I get non-recourse terms on the bridge phase?

Yes. Institutional bridge lenders and debt funds offer non-recourse terms for experienced multifamily operators on loans above $5M. Smaller bridge loans ($2-5M) may require partial recourse or completion guarantees for the renovation component.

What renovation scope is typical for multifamily value-add?

Standard value-add scope includes kitchen and bathroom upgrades, flooring replacement, in-unit washer/dryer installation, and amenity improvements (clubhouse, pool, fitness center). Budget $10,000-$25,000 per unit for interior renovations targeting $100-$300 monthly rent premiums.

Published: March 31, 2026·Last updated: May 16, 2026·By Ed Freeman, Capital Advisor — PeerSense

What is the best financing for multifamily at 75-80% (bridge) / 65% (permanent) LTV?

Multifamily bridge loans provide 75-80% LTV interest-only financing at 8-12% for 12-36 months, enabling acquisition, unit renovation, and rent stabilization. Once occupancy reaches 90%+ and NOI supports 1.25x DSCR, refinance into permanent CMBS (typically 6.75%–9%, with the strongest deals reaching 6.25%) or conventional debt with 10-year fixed-rate terms and non-recourse protection.

Published by PeerSense Capital Advisory · Written by Ed Freeman, Founder

Prime: 6.75% 10-Yr Treasury: 4.25% Est. Bridge Range: 8% – 12% (bridge) / 6.25% – 11%+ typical 6.75–9% (permanent)as of Mar 19, 2026

Multifamily

Bridge-to-Permanent Multifamily Financing

Acquire, renovate, and stabilize multifamily properties with bridge financing at 75-80% LTV, then refinance into permanent CMBS or conventional debt. Complete value-add execution strategy.

Minimum 30-35% equity required. Experienced multifamily operators with a value-add business plan: unit renovations, amenity upgrades, operational improvements.

Discuss Your Multifamily Deal Call (317) 452-6990

KEY TERMS

Deal Parameters at a Glance

LTV Target

75-80% (bridge) / 65% (permanent)

Est. Rate Range

8% – 12% (bridge) / 6.25% – 11%+ typical 6.75–9% (permanent)

Term

12-36 months (bridge) / 5-10 years (permanent)

Recourse

Non-recourse available for bridge and permanent

DSCR

N/A (bridge) / 1.25x (permanent)

Closing Speed

14-30 days (bridge) / 30-45 days (permanent)

Min Loan Size

$2M

Loan Products

Bridge, CMBS, Conventional

FIT ASSESSMENT

When Is This the Right Fit?

Bridge-to-permanent is the right strategy when you are acquiring or repositioning a multifamily property that needs unit renovations, amenity improvements, or operational turnaround to achieve market rents. The bridge phase (12-36 months) provides interest-only capital while you renovate units, increase rents, and stabilize occupancy. Once the property achieves 90%+ occupancy at pro forma rents with 12 months trailing NOI, refinance into permanent CMBS (typically 6.75%–9%, with the strongest deals reaching 6.25%) to lock in long-term fixed-rate debt. This strategy works best when the renovation budget is 10-25% of acquisition cost and the market supports 15%+ rent premiums for renovated units.

Want the full program overview, current rate sheet, and underwriting matrix? See the CMBS Loans guide →

ADVANTAGES

Key Benefits

Bridge phase funds acquisition and renovation with interest-only payments

Unit renovation drives 15-30% rent premiums that increase NOI for permanent refi

Non-recourse bridge available from institutional lenders for experienced sponsors

Clear exit to CMBS permanent debt at 65% LTV locks in long-term fixed rates

Value-add multifamily creates 20-40% equity through forced appreciation

ALTERNATIVES

Strategic Alternatives

Multifamily CMBS Non-Recourse

If your multifamily property is already stabilized and does not need a bridge phase

Learn more

Private Credit for Value-Add CRE

If your value-add plan requires more creative or higher-leverage structures

Learn more

Mixed-Use CMBS 65% LTV

If your multifamily property includes commercial components

Learn more

Frequently Asked Questions

Most multifamily value-add bridge loans run 18-24 months, with two 6-month extension options available. The renovation period (6-12 months) plus lease-up to stabilization (6-12 months) determines the required bridge term. Plan for 24 months minimum to avoid time pressure.

See Related Rates by Program

PeerSense covers the full commercial capital stack. Rates and structures across our money pages — updated weekly.

SBA 7(a) & 504

5.50–11.75%

Up to $5M acquisition / real estate / equipment, 10% down

See current rates

Bridge Loans

9.00–14.00%

12–36 mo transitional, SOFR + 470-970 bps, 65-75% LTV

See current rates

DSCR Investor

5.95–8.50%

30-yr fixed rental, qualifies on property cash flow

See current rates

Equipment Financing

5.50–12.00%

Loan, lease, SBA 504, vendor, captive — Section 179 eligible

See current rates

Hotel Financing

5.85–11.75%

CMBS + SBA 504 + bridge + PIP across all flags

See current rates

Mezzanine Debt

11.00–18.00%

Subordinate to senior, $1M–$50M, capital stack fill

See current rates

Private Credit

7.80–18.00%

Non-bank flexibility, unitranche, recap, transitional

See current rates

Invoice Factoring + ABL

0.5–3.5% / 30d

B2B receivables, trucking / staffing / construction / govt

See current rates

No-Doc CRE

7.50–11.50%

Limited-doc commercial, asset-based underwriting

See current rates

Connect with PeerSense — Direct Capital Advisory

PeerSense pre-underwrites every deal before presenting it to our institutional capital sources. With 500+ lender relationships and live market rate intelligence, we match your multifamily deal with the right capital source — right now.

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Published by PeerSense Capital Advisory · Written by Ed Freeman, Founder. Updated March 2026.

Disclaimer: The information on this page is provided for educational purposes only and does not constitute financial, legal, or investment advice. Rates, terms, and availability are subject to change based on market conditions, property characteristics, and borrower qualifications. The rate ranges cited reflect approximate market pricing as of March 2026 and may not reflect current conditions at the time of reading. PeerSense is a capital advisory firm, not a lender. We do not originate, fund, or service loans. All financing is provided by third-party lenders subject to their own underwriting criteria and approval processes. Borrowers should consult with qualified financial and legal professionals before making any financing decisions.