Acquisition bridge on multifamily typically funds 70 to 80 percent of purchase price plus a future-funding facility for capital expenditures and tenant improvements. The plan: acquire at the bridge, renovate units to target finishes, lease at higher market rents, then refinance into agency permanent debt once stabilized.
How is the loan sized?
Initial funding sized to 70 to 80 percent of purchase plus an established renovation reserve. Combined initial draw plus future funding typically caps at 75 percent of as-stabilized value at a debt yield of 7.0 to 8.0 percent. Sponsors complete the renovation, lease the asset, and refinance into agency at the stabilized yield.
What is the typical timeline?
Twenty-four to thirty-six months from close. Six to twelve months for renovation and rolling lease-up. Six months of trailing operations to qualify for agency execution. Three to six months for the agency refinance close. Sponsors who skip the trailing-operations period pay materially more on agency.
Sources
- Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations · Mortgage Bankers Association · 2026-Q1
- Delegated Underwriting and Servicing (DUS) program disclosures · Fannie Mae · current