The capital stack is the full structure of how an LA multifamily deal is financed — senior debt, mezzanine debt, preferred equity, common equity, etc. — ordered from lowest risk/cost to highest.
A typical LA multifamily cap stack: senior debt 60–70%, common equity 25–35%, optional mezz or preferred equity 5–10% in the middle. Each layer has different cost, priority of repayment, and risk profile.
LA multifamily cap stacks in 2026 have compressed — less mezz and preferred equity than in 2021, more common equity, lower senior LTV. Sponsors face higher equity requirements than the 2021 environment.
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