LTV is the loan amount divided by property value. LA commercial multifamily LTV maxes typically run 60–75% in 2026, lower for pre-1978 RSO inventory.
An $8 million property with $5 million of debt has 62.5% LTV. Lenders cap LTV to maintain equity cushion against price declines. Lower LTV means more borrower equity, less lender risk, better loan terms.
Maximum LTV varies by property type, lender, and market conditions. Stabilized Class A/B multifamily supports higher LTV than value-add or older inventory.
LA multifamily LTV in 2026: 65–75% on stabilized post-1995 Costa-Hawkins exempt inventory, 55–65% on pre-1978 RSO-constrained buildings, 60–70% on AB 1482-only inventory. Lenders discount LTV on regulatory-constrained assets.
From the Sterman LA Multifamily Glossary — defined the way a broker with $1.41 billion across 254 closed transactions actually uses these terms.
Michael Sterman, Senior Managing Director Investments, Marcus & Millichap.
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