What Does a $5M+ Multifamily Bridge Loan Actually Cost in 2026?
February 12, 2026 • Travis Penny
Pricing on $5M+ multifamily bridge debt has three components: the index, the spread, and the all-in cost. Sponsors who understand all three negotiate better terms.
The Index
Most institutional bridge debt prices off SOFR (Secured Overnight Financing Rate). Rates move with SOFR plus the lender's spread. Some debt funds use a fixed rate during the bridge term.
The Spread
The spread is what the lender charges over SOFR for the risk. For stabilized multifamily bridge in 2026, spreads typically run in a competitive band that depends on leverage, sponsor, and takeout. Value-add multifamily prices wider. Lease-up and transitional prices wider still.
The All-In Cost
All-in cost includes the index plus spread plus origination fee (typically 1% to 2%), legal fees (lender + sponsor counsel), third-party reports (appraisal, environmental, engineering), title and recording, and any required reserves (interest reserve, capex reserve, debt service reserve).
What Drives Pricing
Asset quality (Class A vs B vs C), market (top-25 MSA vs secondary), sponsor strength (institutional vs first-time large-balance), leverage (60% LTC vs 75% LTC), and takeout strength (locked-in agency forward vs "we'll figure it out").
How to Get the Real Number
Send the actual deal: address, property type, units, in-place T-12, projected stabilized NOI, sources and uses, sponsor bio, and the takeout plan. Quoting blind to a sponsor without all of that wastes everyone's time.
Have a deal that fits this?
Send the file or pick up the phone. I answer 7 days a week.