A bridge loan is short-term multifamily financing (typically 12-36 months) used for acquisitions requiring quick close, stabilization, or value-add execution before permanent financing is available.
Bridge loans have higher rates and fees than permanent financing, but offer flexibility: faster close, less stringent underwriting for properties mid-stabilization, and interest-only structure. Borrowers use bridges for value-add acquisitions, lease-up periods, or when permanent financing can't underwrite current NOI.
Exit strategies: refinance into permanent financing post-stabilization, or sell the property.
LA multifamily bridge loans in 2026 typically price 200-350 basis points above permanent financing, with 12-36 month terms. Used most often on value-add acquisitions where NOI needs stabilization before permanent debt can underwrite.
From the Sterman LA Multifamily Glossary — defined the way a broker with $1.41 billion across 254 closed transactions actually uses these terms.
Michael Sterman, Senior Managing Director Investments, Marcus & Millichap.
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