$10 Million CMBS Multifamily Refinance

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $10 million CMBS multifamily refinance is a non-recourse fixed-rate execution placed into a multi-property CMBS pool by a CMBS conduit lender. CMBS multifamily competes with agency on properties that fall outside the agency box (commercial NOI exposure, sponsor profile issues, tertiary markets) and on properties where defeasance prepay flexibility is preferred over yield maintenance. Most $10M CMBS multifamily transactions are at 65 to 70 percent LTV with 10-year fixed-rate terms.

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What a $10M CMBS Multifamily Refinance Capital Stack Looks Like

$10M CMBS multifamily refinances fund as a single senior CMBS loan placed into a conduit pool. The decision is typically CMBS versus agency, with agency winning on most stabilized market-rate multifamily.

Capital Source Rate / Cost Size / LTV Notes
CMBS conduit 6.05 to 6.85% (10-year fixed) $10M / 65 to 70% LTV Defeasance prepay; non-recourse
Fannie / Freddie 5.55 to 6.10% (10-year fixed) $10M / 70 to 75% LTV Tighter pricing for stabilized market-rate
Life company 5.40 to 5.90% (10 to 15 year fixed) $10M / 55 to 65% LTV Trophy properties only
Bank balance sheet 6.85 to 7.85% $10M / 65 to 70% LTV 5 to 7 year fixed; recourse

Pricing reflects active CLS CRE quote pipeline as of April 2026. Specific deal pricing depends on sponsor, property, and structure.

Who Closes a $10M CMBS Multifamily Refinance Deal

Typical $10M CMBS multifamily sponsors are private capital and family office multifamily owners with 5 to 30 properties. The CMBS execution is typically chosen when the property has commercial NOI exposure (ground-floor retail), the sponsor profile does not fit agency standards, the market is tertiary, or the sponsor wants defeasance prepayment optionality.

A Real $10M Example

On a $10.4M Class B mixed-use multifamily refinance in a Sun Belt market with 78 percent multifamily NOI and 22 percent ground-floor commercial NOI (a small neighborhood retail center), Fannie and Freddie both passed because the commercial component exceeded the multifamily cutoff. CMBS quoted at 6.55 percent fixed 10-year, 67 percent LTV, $7M loan amount, with 5 years of interest-only and full defeasance prepayment. The sponsor took the CMBS execution because no agency lender would quote, and the CMBS structure preserved exit optionality through defeasance.

Anonymized. All deal references protect borrower and lender identity.

$10M CMBS Multifamily Refinance FAQ

When the deal cannot fit inside the agency box. Common triggers: ground-floor commercial NOI exceeding 25 to 30 percent of total, sponsor resume issues, tertiary market without agency Seller-Servicer competition, or specialized structures.
CMBS uses defeasance prepayment, which requires the borrower to purchase Treasury securities sufficient to defease the loan and sell the defeased loan to a third party. Defeasance preserves the loan as a tradeable asset.
No. CMBS conduits cap multifamily at 65 to 75 percent LTV typically. Agency programs lever to 75 to 80 percent.
60 to 90 days from term sheet to close on CMBS multifamily.

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