Loan-to-cost is the loan amount divided by total project cost (acquisition plus capital improvements). Typical LA multifamily LTC for value-add bridge loans: 65–75%.
For acquisitions with planned capital work, LTC is a more relevant lender metric than LTV. Total project cost includes purchase price, renovation budget, and soft costs. Bridge lenders often limit LTC to ensure borrower equity remains in the deal.
LA multifamily value-add acquisitions in 2026 typically finance at 65–72% LTC for bridge debt. Higher LTC structures are increasingly rare given post-2023 lender conservatism. Sponsors need larger equity checks than in 2021.
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