New York · Multifamily
New York multifamily financing.
Bridge, construction, renovation, and stabilized debt for apartment buildings across NYC (Manhattan, Brooklyn, Queens, Bronx), Long Island, Westchester, and Upstate metros. Business-purpose financing $1M to $50M+.
By David Hodara ·
5+
Active boroughs/metros
$1M-$50M+
Loan range
~50%
Rent-stabilized share NYC
2-4 weeks
Typical close
New York multifamily market context
New York multifamily is the most complex regulatory environment in the US for apartment financing. Rent-stabilized properties (roughly 50% of NYC's rental stock), HSTPA (Housing Stability and Tenant Protection Act, 2019) restrictions on rent increases and tenant improvements, and J-51/421-a tax abatement transitions all shape underwriting.
Lenders distinguish sharply between free-market multifamily and rent-stabilized properties. Free-market underwriting is similar to other major metros (NOI-based, market rent assumptions). Rent-stabilized underwriting uses stabilized rent rolls with HSTPA-compliant growth assumptions (effectively 0-2% annual rent growth), materially different DSCR and exit valuation math.
Typical loan products for New York multifamily
Each deal gets routed to the product structure that fits. Most multifamily deals in New York use one of the following.
Bridge loans
Short-term financing to acquire, reposition, or stabilize an apartment building before refinancing into permanent debt. 7-10 day close, 8-12% IO, up to 80% LTV.
Construction loans
Ground-up multifamily development financing with draw schedule tied to milestones. Up to 85% LTC, 12-24 month terms.
Renovation loans
Acquisition + rehab in a single facility for value-add multifamily. Up to 90% of purchase price and 100% of rehab cost.
New York multifamily FAQ
How does HSTPA affect New York multifamily underwriting?
HSTPA (2019) eliminated vacancy decontrol, capped MCI (major capital improvement) rent increases, and limited IAI (individual apartment improvement) increases on rent-stabilized units. Effectively this caps rent growth on stabilized units to the Rent Guidelines Board annual increases (typically 0-3%). Lenders underwrite stabilized portfolios with these growth caps, materially below free-market assumptions.
What's typical leverage on NYC rent-stabilized vs free-market multifamily?
Free-market: 70-75% LTV stabilized, 65-70% value-add. Rent-stabilized: 60-65% LTV on stabilized portfolios, often lower on value-add given HSTPA growth restrictions. Pricing on rent-stabilized is materially wider due to the limited NOI growth runway.
How do J-51 and 421-a tax abatements affect multifamily financing?
Both programs offer property tax abatement for qualifying multifamily projects (J-51 for renovation, 421-a for new construction with affordable set-asides). Lenders verify abatement status, remaining term, and step-up schedule. Abatement expiration is a major NOI cliff that needs to be modeled in underwriting.
Are NYC ground-up multifamily projects still financeable?
Yes, but selectively. The 421-a successor program (485-x) and the long-running construction environment continue to challenge starts. Lenders want clear entitlement, financing-friendly capital stack, and sponsor track record in NYC's specific approval and construction environment. Outer-borough projects (Brooklyn, Queens, Bronx) are more active than Manhattan ground-up.
Other New York asset classes
Got a New York multifamily deal? Send it over.
Term sheet inside 48 hours, or a fast no so you can move on. Business-purpose CRE financing only.