Mid-sized multifamily development financing provides tailored debt and equity capital structures for ground-up construction, adaptive reuse, and bridge projects with total costs between $10 million and $75 million. Thorne CRE specializes in delivering rapid, high-leverage financing solutions for mid-market developers operating in underserved property size tiers.
The Mid-Sized Multifamily Market: An Underserved Opportunity
The mid-sized multifamily development sector, typically encompassing projects with 50 to 250 units, occupies a distinct gap in commercial real estate finance. Traditional institutional banks often consider $10 million to $75 million projects too small for their institutional capital groups and too complex for regional retail branches. Thorne CRE addresses this middle-market capital squeeze by delivering bespoke debt and equity structures.
Thorne CRE’s Value Proposition: Speed, Flexibility, and Expertise
In contrast to large traditional lenders like JPMorgan Chase, Bank of America, U.S. Bank, or Wells Fargo, Thorne CRE operates with an agile decision-making process that delivers faster term sheet commitments and streamlined closings:
- Expedited Underwriting: Commitments are frequently issued within 1–2 weeks, compared to 4–8 weeks at conventional banks.
- Tailored Structures: Customized loan-to-cost (LTC) ratios, flexible interest accrual, and repayment schedules aligned with construction draw schedules.
- Relationship-Centric Focus: Direct access to principal underwriters and specialized expertise in target growth markets.
- Complex Execution Capability: Solutions engineered for brownfield redevelopment, historic tax credits, and complex entitlements. Read more on why choose boutique CRE finance for mid-market developments.
Financing Products & Loan Terms
Thorne CRE offers flexible financing products designed for the entire lifecycle of mid-sized multifamily developments:
Construction Loans
- Loan Amounts: $8 million to $60 million.
- Senior Debt LTC: Up to 75%–85% (higher blended LTC available with preferred equity).
- Stabilized LTV: 65%–70%.
- Interest Rates: Floating rates starting at Secured Overnight Financing Rate (SOFR) + 300–500 bps, or fixed short-term rates.
- Loan Terms: 24–36 months with extension options.
- Geographic Focus: Primary and secondary growth markets in the Southeast, Southwest, and Midwest urban cores.
Bridge Financing
- Purpose: Site acquisition, repositioning, or refinancing prior to permanent takeout.
- Loan Amounts: $5 million to $40 million.
- LTC/LTV: Up to 70%–75%.
- Terms: 12–24 months.
Mezzanine Debt & Preferred Equity
Developers seeking to minimize equity dilution can work with specialized commercial real estate mezzanine debt lenders to stretch total project leverage.
- Combined Capital LTC: Up to 85%–90% of total development cost.
- Return Structure: Flexible current-pay and accrual terms with optional equity kickers.
Case Studies: Execution in Mid-Sized Multifamily Projects
Case Study 1: Urban Infill Development (Southeast US)
- Project Details: 120-unit ground-up residential build with ground-floor retail.
- Total Cost: $38 million.
- Thorne CRE Solution: $28 million senior construction loan (74% LTC).
- Execution: Underwritten and closed within 6 weeks, enabling site acquisition despite a complex, multi-phase municipal entitlement timeline.
Case Study 2: Historic Adaptive Reuse (Midwest US)
- Project Details: Conversion of a historic commercial property into 75 luxury apartment units.
- Total Cost: $22 million.
- Thorne CRE Solution: $16.5 million construction loan (75% LTC) combined with $2.5 million preferred equity (86% total LTC).
- Execution: Integrated historic tax credit equity seamlessly into the capital stack while reducing sponsor cash equity requirements.