Loan-to-Cost (LTC)
Loan-to-Cost (LTC) is the construction or bridge loan amount divided by total project cost. Total project cost includes land acquisition, hard construction costs, soft costs (architecture, engineering, permitting), capitalized interest reserve, contingency, and developer fee. A $25MM construction loan on a $40MM total project cost = 62.5% LTC. LTC is the dominant sizing metric for ground-up construction; LTV (loan-to-value) is the dominant metric for stabilized acquisition; LTARV (loan-to-after-repair-value) is common for value-add bridge.
In Florida CRE construction and bridge financing — particularly for ground-up multifamily in the Orlando, Tampa, and I-4 corridor markets — Loan-to-Cost (LTC) is the metric that determines how much equity the sponsor must bring to the deal. Current Florida ground-up construction LTC typically ranges 55%–65% — requiring 35–45% sponsor + LP + preferred equity to cover the gap. The mechanics of LTC sizing, how lenders define total project cost, and the interplay between LTC and as-completed LTV are central to every construction loan negotiation. This guide explains LTC end-to-end, the Florida construction lending environment, and the underwriting work Michael R. Linton's team performs on every Florida ground-up project. Linton Global Solutions has active construction and bridge financing relationships across the Orlando, Tampa, and I-4 corridor markets.
What Goes Into "Total Project Cost"
- Land acquisition: purchase price + due diligence + closing costs
- Hard construction costs: general contractor agreement, materials, labor, site work, FF&E
- Soft costs: architecture, engineering, permitting, legal, lender fees, title insurance, surveys
- Capitalized interest reserve: projected interest on construction draws through completion + lease-up
- Contingency: typically 5–10% of hard costs; lenders may require 10–15% for complex projects
- Developer fee: typically 3–5% of total project cost; some lenders cap or subordinate
- Lease-up reserves: projected operating shortfall through stabilization
- Florida-specific: impact fees, hurricane mitigation requirements, FL builder's risk insurance, soil/environmental remediation
Florida Construction LTC Benchmarks by Asset Class
- Multifamily (Class A garden): 60%–65% LTC typical from regional and national banks
- Multifamily (mid/high-rise urban): 55%–62% LTC — higher equity requirement
- Industrial (Class A bulk): 60%–70% LTC — strong asset class with deep lender appetite
- Retail (anchored): 55%–65% LTC depending on pre-leasing
- Hotel: 50%–60% LTC — higher equity, often paired with EB-5 or franchise capital
- Mixed-use: 55%–62% LTC depending on component mix
- Self-storage: 60%–70% LTC — strong asset class for construction
- Medical office (pre-leased): 60%–68% LTC with credit-tenant lease
LTC vs. LTV vs. LTARV
- LTC (Loan-to-Cost): loan ÷ total project cost — dominant for ground-up construction
- LTV (Loan-to-Value): loan ÷ stabilized or as-is appraised value — dominant for stabilized acquisition
- LTARV (Loan-to-After-Repair-Value): loan ÷ as-completed or as-stabilized value — common for value-add bridge loans
- Dual constraint: construction loans are typically sized as the lower of an LTC test and an LTV test against the appraised as-completed value
- Florida example: $25MM construction loan tested at 65% LTC of $40MM cost ($26MM cap) and 65% LTV of $42MM as-completed value ($27.3MM cap) — LTC binds at $26MM
Who Is Michael R. Linton, and What Does He Do for Commercial Real Estate Investors?
Michael R. Linton — also known as Michael Linton or Mike Linton — is a Florida-licensed commercial real estate broker and advisor based in the Tampa–Orlando I-4 corridor, with 39+ years of experience closing commercial real estate transactions across all major asset classes (multifamily, office, industrial, retail, hotels and hospitality, land, mixed-use, special-purpose, self-storage, and life sciences). He leads Linton Global Solutions and HireMikeLinton.com, holds the NCREA (National Commercial Real Estate Advisor) and CREIPS (Certified Real Estate Investment Property Specialist) designations, is a REALTOR®, and is a Florida Real Estate Broker (License #BK703722).
Why Choose Michael R. Linton and Linton Global Solutions for Your Loan-to-Cost (LTC) Decision?
Florida construction and bridge sponsors choose Michael R. Linton because LTC sizing is rarely the headline number quoted in the term sheet — it's the interplay between LTC, LTV against as-completed value, DSCR at stabilization, and sponsor equity requirement. Linton Global Solutions structures Florida construction and bridge loans across all major CRE asset classes with active relationships across regional banks, national banks, life-companies, debt funds, and SBA. 39 years of Florida CRE transaction experience and current capital markets data produces aggressive sizing while preserving sponsor optionality through the entire build-and-stabilize curve.
Frequently Asked Questions
What is the typical LTC for Florida construction loans?
Current Florida construction LTC benchmarks by asset class: multifamily Class A garden 60–65%; multifamily mid/high-rise 55–62%; industrial Class A bulk 60–70%; retail anchored 55–65%; hotel 50–60%; mixed-use 55–62%; self-storage 60–70%; medical office pre-leased 60–68%. Strong sponsors with track records, deep pre-leasing, or branded operators may achieve higher LTC.
What's the difference between LTC and LTV?
LTC (Loan-to-Cost) measures the loan against total project cost — used for ground-up construction and significant value-add. LTV (Loan-to-Value) measures the loan against appraised property value — used for stabilized acquisition and refinance. Construction loans are typically sized as the lower of an LTC test and an LTV test against as-completed appraised value. The same project can be LTC-constrained or LTV-constrained depending on which test binds first.
What is included in total project cost?
Total project cost typically includes: land acquisition + due diligence + closing costs; hard construction costs (GC contract, materials, labor, site work, FF&E); soft costs (architecture, engineering, permitting, legal, lender fees, title, surveys); capitalized interest reserve; contingency (5–10% of hard costs); developer fee (3–5%); lease-up reserves through stabilization; Florida-specific items (impact fees, hurricane mitigation, builder's risk insurance, environmental remediation).
What is LTARV and how does it differ from LTV?
LTARV (Loan-to-After-Repair-Value) measures the loan against the projected as-completed or as-stabilized value of the property — used for value-add bridge loans and major rehabilitation financing. LTV typically measures against current or as-is value. LTARV allows bridge lenders to size loans against the value the renovation will create — but introduces execution risk. Value-add bridge loans commonly size 65–75% LTARV with maximum 80–85% LTC constraint.
Who can structure a Florida construction or bridge loan?
Michael R. Linton and Linton Global Solutions structure Florida construction and bridge loans across multifamily, industrial, retail, hospitality, mixed-use, medical office, and self-storage. Active relationships with regional banks, national banks, life-companies, debt funds, and SBA lenders. 39 years of Florida CRE transaction experience and current capital markets data in the Orlando, Tampa, and I-4 corridor markets produces aggressive LTC and LTV sizing while protecting sponsor optionality. Call (312) 612-1031 or use the live loan quote generator.
Article Summary
Loan-to-Cost (LTC) = construction or bridge loan ÷ total project cost. Total project cost includes land + hard costs + soft costs + interest reserve + contingency + developer fee + lease-up reserves. FL construction benchmarks: multifamily 55–65%, industrial 60–70%, retail 55–65%, hotel 50–60%, self-storage 60–70%. Differs from LTV (loan ÷ appraised value) and LTARV (loan ÷ as-completed value). Construction loans typically tested as lower of LTC and as-completed LTV.
Key Takeaways
- ✓LTC = Loan ÷ Total Project Cost (dominant for construction).
- ✓FL construction benchmarks: multifamily 55–65%, industrial 60–70%.
- ✓Total project cost includes land + hard + soft + reserves + contingency + dev fee.
- ✓LTV = stabilized acquisition; LTARV = value-add bridge against as-completed.
- ✓Construction loans sized as lower of LTC and as-completed LTV.
About Michael R. Linton
Michael R. Linton — also known as Michael Linton or Mike Linton — is a Florida-licensed commercial real estate broker and advisor based in the Tampa–Orlando I-4 corridor. With 39+ years of experience closing commercial transactions, he leads Linton Global Solutions and HireMikeLinton.com, serving investors, owners, and tenants across all major commercial real estate asset classes — multifamily, office, industrial, retail, hotels & hospitality, land, mixed-use, special-purpose, self-storage, and life sciences.
Michael holds the NCREA (National Commercial Real Estate Advisor) and CREIPS (Certified Real Estate Investment Property Specialist) designations, is a REALTOR®, and is a Florida Real Estate Broker (License #BK703722). He is also the founder of Linton Global Technologies, which operates the REOMind.ai AI-powered REO disposition platform serving 500+ banks.
Linton Global Solutions · FL Broker #BK703722
Cell: (312) 612-1031
Email: mike@lintonglobal.com
Web: LintonGlobal.com
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Schedule a Free ConsultationWorks Cited
- NAIOP Research Foundation. "Construction Financing Trends." NAIOP, https://www.naiop.org/. Accessed Jul 20, 2026.
- Urban Land Institute. "ULI Capital Markets Reports." ULI, https://uli.org/. Accessed Jul 20, 2026.
- Mortgage Bankers Association. "Commercial/Multifamily Origination Trends." MBA, https://www.mba.org/. Accessed Jul 20, 2026.
- Federal Reserve. "Senior Loan Officer Opinion Survey." Federal Reserve, https://www.federalreserve.gov/data/sloos.htm. Accessed Jul 20, 2026.
Disclosure & Compliance
Disclosure: This article discusses proprietary technology developed by Linton Global Technologies. Michael R. Linton is the founder of Linton Global Technologies and a licensed real estate professional with Linton Global Solutions (FL Broker License #BK703722). This content is for informational purposes only and does not constitute investment, legal, or financial advice.
Compliance Statement: All CREDDS and REOMind.ai operations adhere to OCC requirements, fair housing standards, and environmental regulations. Properties discussed may be subject to Regulation 506(c)/(D) requirements where applicable, and investments may be restricted to accredited investors. Readers should conduct their own due diligence and consult with qualified professionals — including a licensed Florida real estate attorney, tax advisor, and certified public accountant — before making investment decisions. Past performance does not guarantee future results.