Multifamily Loans in California

California multifamily — recent closings (May 2026): mostly mid-6s (roughly 6.0%–7.0%) fixed via agency and bank execution, priced over the 5-year Treasury at about +2.5–3.0% (bridge and floating options run higher). $5M–$30M · 15–30 day typical close.

The figures above reflect actual, recently closed commercial real estate transactions and are accurate as reported as of May 2026. They are historical market data — not an indication or offer of the rate or terms you will receive; your terms depend on the property, sponsor, market, and lender underwriting and will vary. Northern Ridge Capital arranges commercial real estate financing only (no residential) and is a licensed mortgage broker (CA DRE #02093377), not a lender. See full disclosures.

In California, the rent roll on paper is not the rent roll a lender underwrites. AB 1482 caps annual increases statewide, and stricter local ordinances in Los Angeles, San Francisco, Oakland, and San Jose cap them further, so a lender sizes your loan on constrained rent growth, not on what the market would otherwise bear. That single fact drives most California apartment financing outcomes. Northern Ridge Capital places $5M–$30M multifamily debt across the state by matching your deal to the lenders who underwrite rent-regulated California apartments correctly (agency, bank, life company, and bridge) rather than taking your current bank’s first number. We’re a broker, not a lender.

Stop wasting deals on the wrong lenders

California apartments are financeable in almost any market, but the spread between the best and worst execution is wide, and rent regulation widens it further. Agency lenders (Fannie and Freddie), banks, credit unions, life companies, and debt funds each treat capped rent growth, seismic retrofit exposure, and Prop 13 reassessment differently. A stabilized building can win aggressive non-recourse agency terms; a value-add deal in a rent-controlled submarket needs a lender who underwrites the business plan without punishing the cap. We position your property for the lenders most likely to win it from a network of 700+, then run them against each other on rate, leverage, recourse, and proceeds.

The California multifamily market: what lenders are actually pricing

California apartment fundamentals are tight where supply is scarce and softer where new luxury product landed. Coastal, high-barrier metros stay landlord-favorable: Institutional Property Advisors (IPA) put Q1 2026 vacancy near 3.5% in San Francisco, 3.3% in San Jose, and 4.8% in Los Angeles, all well below national levels and backed by minimal new construction. Kidder Mathews reported the broader LA metro closer to 5.4% in Q1 2026, up about 50 basis points year over year, with the pressure concentrated in newly delivered Westside and central luxury units rather than established, supply-starved neighborhoods. On the regulatory side, the AB 1482 cap for covered units in Los Angeles and Orange County resets to 8.7% on August 1, 2026 per the California Apartment Association, and many rent-controlled cities cap increases far lower. Lenders read all of this directly into your loan sizing. When they cannot assume aggressive rent growth, debt-service coverage does more of the work, and the deals that clear are the ones where the underwriting was built the way the lender builds it. A large share of California apartment debt written in 2021 and 2022 at 3% to 4% is now maturing into today’s higher-rate market, and you cannot simply raise rents to cover a doubled payment. The owners who refinance best start early and put several lenders in competition.

What’s different about financing multifamily in California

Rent regulation is the underwriting story, not a footnote. Because AB 1482 and local ordinances cap how fast income can grow, lenders lean harder on in-place debt-service coverage and are more conservative on proceeds for value-add and recently acquired assets, since the path to higher NOI is legally throttled. Prop 13 adds a second wrinkle: a sale can trigger reassessment, so a new buyer’s property-tax expense can jump well above the seller’s, which reshapes the pro-forma DSCR a lender sizes to. Seismic and soft-story retrofit ordinances in Los Angeles and San Francisco can surface as required capital work that a lender reserves for or underwrites around. None of this makes California apartments hard to finance. It means the lender who understands rent-cap math, reassessment risk, and retrofit reserves will quote very differently than one who does not. Getting matched to that lender is the entire game.

What our recent California closings show on pricing

In our recent California multifamily closings, fixed pricing clustered in the mid-6s, roughly 6.0% to 7.0%, priced over the 5-year Treasury at about +2.5% to +3.0%, with the May median near 6.8% (closed-deal data as of May 2026, not an offer). Bridge and floating executions ran higher. Agency execution generally set the low end on stabilized, well-covered assets, while bank and life-company quotes moved with leverage and recourse. Treat these as a read on where the market has actually cleared, then let a competitive process find your number.

Typical California multifamily terms

Related financing: California retail loans, California industrial loans, California commercial bridge loans, and multifamily loans.

Structure shown is typical, not a quote or commitment; actual terms are set by third-party lenders subject to underwriting. See disclosures.

When it fits

Acquisition

Buying a California apartment property? Price the reassessed property tax into your DSCR before you bid, and line up debt early. The buyer who does both, and can close on time, wins.

Refinance / maturing loan

Loan maturing into a higher-rate market? With rents capped, you cannot outgrow the new payment, so this is where proceeds are won or lost. We run the whole market so you refinance on the best available terms, not your current lender’s first offer.

Agency / permanent (stabilized)

Holding long-term on a stabilized property? Fannie and Freddie execution often delivers the best long-term fixed rates and non-recourse terms on qualifying California apartments, including rent-regulated stock.

Value-add, lease-up, or transitional

Renovating or repositioning inside a rent-capped submarket? A bridge lender who underwrites a realistic, regulation-aware business plan, then a clean agency or permanent takeout once the property stabilizes.

How we place California multifamily debt

We’re a debt brokerage with $600M+ in deal experience across underwriting and brokerage. We underwrite your property the way lenders will, including rent-cap constraints and reassessed taxes, take it to the ones actively competing for California multifamily from a network of 700+, and run it to close, typically 15–30 days. You get options and leverage, not a single take-it-or-leave-it term sheet.

California multifamily loans: FAQ

What rate can I get on a California multifamily loan?

In our closing data, recent loans here have run mostly mid-6s (roughly 6.0%–7.0%) fixed via agency and bank execution, priced over the 5-year Treasury at about +2.5–3.0% (bridge and floating options run higher) (May 2026). These are actual closed transactions, not an offer — your rate depends on the asset, leverage, and sponsor. Contact us for a live quote.

Does rent control change my financing options?

Yes, more than most owners expect. Because AB 1482 and local ordinances in cities like Los Angeles, San Francisco, Oakland, and San Jose cap annual increases, lenders underwrite constrained rent growth and lean on in-place debt-service coverage rather than an aggressive pro forma. It does not block financing, but it can cap proceeds and narrows the field to lenders who size rent-regulated California apartments correctly. Matching you to those lenders is the job.

How does Prop 13 reassessment affect my loan?

When a California property sells, it can be reassessed, so a buyer’s property-tax bill may run well above the seller’s. That higher expense lowers NOI and the DSCR a lender sizes to, which can reduce proceeds if you underwrite off the old tax figure. We build the reassessed number into the file up front so the loan amount is real.

How much can I borrow?

Northern Ridge Capital places multifamily debt from $5 million to $30 million. Leverage commonly reaches ~65–75% LTV on stabilized assets, though under capped rents the binding constraint is often DSCR rather than LTV.

My property still cash-flows but I can’t refinance at the same loan amount. Why?

Coverage is calculated at today’s rate. If your rate roughly doubles, your payment roughly doubles on the same capped income, which can push you below the DSCR most lenders require even though the property performs. It is usually a lender-fit and structuring problem, and often solvable by taking the deal to the right lender instead of your incumbent.

Is Northern Ridge Capital a lender?

No. We’re a commercial mortgage broker (CA DRE #02093377) that places your deal with the right lender from a network of 700+ and makes them compete. Commercial real estate only.

Do you only work in California?

We place debt nationwide within our licensed footprint, with deep focus in California, Texas, Florida, Georgia, and Indiana.

About

Justin Ashcraft is the principal of Northern Ridge Capital, a commercial real estate debt brokerage placing $5M–$30M in multifamily, retail, industrial, and SBA financing nationwide within its licensed footprint, with $600M+ in deal experience across underwriting and brokerage. Licensed in California, DRE #02093377.

Northern Ridge Capital is a licensed commercial mortgage broker (CA DRE #02093377), not a lender, and arranges financing on commercial real estate only (no residential). Rates and figures reflect actual closed transactions as of the date noted and are not an indication or offer of terms. For informational purposes only; not financial, legal, or tax advice. Full disclosures.