Loan Size Example

$10 Million Multifamily Acquisition in Phoenix

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $10 million multifamily acquisition in Phoenix represents a mid-market entry point for experienced sponsors seeking Class B and Class C assets across growing submarkets like Tempe, Chandler, and central Phoenix. Leverage typically ranges from 65 to 75 percent LTV, with 10-year fixed or hybrid structures pricing near 5.60 percent in the current rate environment. At this size, borrowers access both agency and balance sheet capital, though lender selection hinges heavily on property condition, rent roll stability, and sponsor track record. Phoenix's continued population inflow and job growth create consistent demand for well-positioned multifamily, making permanent financing readily available from multiple execution channels.

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Capital Stack

What a $10M Multifamily Acquisition Capital Stack Looks Like

The $10 million multifamily acquisition stack in Phoenix is dominated by agency DUS programs and regional bank balance sheet originations, each offering distinct advantages depending on property vintage and sponsor profile. Life company capital occasionally competes for stronger credits at lower leverage, but agency execution typically wins on pricing and execution speed, particularly for properties with stabilized rent rolls and predictable debt service coverage.

Capital Source	Rate / Cost	Size / LTV	Notes
Agency DUS (Freddie Mac or Fannie Mae standard program)	5.55 to 5.75 percent on 10-year fixed	$10M at 70 to 75 percent LTV	Primary execution for stabilized assets; full recourse typical for loan amounts under $15 million; 3 to 5 month close timeline; borrower must meet net worth and liquidity thresholds
Regional bank balance sheet	5.60 to 6.10 percent on 7 to 10-year fixed or 5/1 ARM	$10M at 65 to 72 percent LTV	Faster approval for relationship borrowers; more flexibility on property type and condition; recourse common but negotiable; 2 to 3 month close timeline possible
Life company	5.75 to 6.25 percent on 10 to 15-year fixed	$10M at 55 to 65 percent LTV	Interest-only periods available for value-add repositioning; longer hold bias; lower debt service coverage covenant (1.20x to 1.30x); 4 to 6 week underwriting if pre-approved
Credit union or small portfolio lender	5.70 to 6.35 percent on 5 to 10-year fixed	$10M at 60 to 70 percent LTV	Local market knowledge and community lending mandate; underwriting turnaround 3 to 4 weeks; recourse often required; less stringent due diligence for repeat borrowers

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

Sponsor Profile

Who Closes a $10M Multifamily Acquisition Deal

The typical borrower for a $10 million Phoenix multifamily acquisition is a seasoned operator or partnership with $5 million to $15 million in net worth, active in 3 to 8 prior deals, and usually focused on value-add or stabilized core-plus repositioning. Motivations commonly include acquiring secondary-market assets ahead of higher job growth corridors, refinancing existing properties to unlock equity, or consolidating a small multifamily portfolio under centralized management. These sponsors often operate regionally within the Southwest, have in-place property management infrastructure, and demonstrate strong balance sheet liquidity to satisfy lender covenants.

From the CLS CRE Pipeline

A Real $10M Example

We closed a $9.8 million permanent loan on a 124-unit garden-style property in Chandler featuring below-market in-place rents and deferred capital needs. The borrower, an experienced Arizona multifamily operator, executed a 10-year fixed-rate loan at 5.58 percent through an agency DUS program at 72 percent LTV with 1.35x DSCR. The deal included a 24-month interest-only extension conditional on achieving 90 percent occupancy, allowing the sponsor to execute value-add upgrades and rent rate recovery before full amortization. Close occurred in 4.5 months, and the property has since reached stabilized occupancy with average rent growth of 6 percent annually.

Anonymized. All deal references protect borrower and lender identity.

FAQ

$10M Multifamily Acquisition Phoenix FAQ

Most agency lenders require 1.25x to 1.35x DSCR on a 10-year amortization at the loan origination rate. Regional banks may accept 1.20x for relationship borrowers or stabilized properties. Life companies often allow lower covenant DSCR (1.15x to 1.25x) but charge higher rates. Exceeding 1.40x DSCR often qualifies borrowers for rate concessions or better terms.

At 70 to 75 percent loan-to-value, you need 25 to 30 percent equity ($2.5 million to $3 million on a $10 million purchase). Agency lenders typically require 20 to 25 percent liquid reserves beyond the down payment for ongoing operations and capital calls. Some borrowers negotiate a 5 to 10 percent reserve requirement for strong sponsor profiles or stabilized properties.

Agency DUS programs close in 4 to 5 months from complete application submission; regional banks typically close in 3 to 4 months for existing relationships. Life companies can accelerate to 2 to 3 weeks if borrower documentation is pre-approved and complete. Plan for 6 to 8 weeks of pre-underwriting and property due diligence across all capital sources.

Life company and some portfolio lenders offer 1 to 3-year interest-only periods, typically requiring proof of rent growth or occupancy targets within 18 to 24 months. Agency DUS programs rarely offer true IO periods but may allow interest-only extensions as covenant waivers if borrower performance metrics are met. Regional banks occasionally structure 6 to 12-month interest-only bridges if the borrower is executing active value-add.

Chandler, Tempe, and Scottsdale north of Camelback typically see the most active lender participation due to strong job growth, lower vacancy, and predictable rent growth. Central Phoenix (downtown, Midtown, Phoenix near ASU centers) is seeing increased agency appetite. Far suburban areas (northeast Phoenix beyond Paradise Valley) attract regional bank and credit union focus but fewer agency programs.

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$10 Million Multifamily Acquisition in Phoenix

What a $10M Multifamily Acquisition Capital Stack Looks Like

Who Closes a $10M Multifamily Acquisition Deal

A Real $10M Example

$10M Multifamily Acquisition Phoenix FAQ

Get a Quote on Your $10M Deal

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