$10M Multifamily Acquisition San Diego | Commercial Lending Solutions 
Loan Size Example

$10 Million Multifamily Acquisition in San Diego

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $10 million multifamily acquisition in San Diego represents a core-plus play in one of the West Coast's most resilient apartment markets. At this loan size, borrowers are typically acquiring stabilized 60 to 120 unit properties in established submarkets like Pacific Beach, Clairemont, or Mission Valley, where rents and occupancy support traditional agency leverage. Rates in the 6.25 percent range reflect current 10-year Treasury levels plus agency spread, with most lenders offering 65 to 75 percent LTV depending on debt service coverage and sponsor profile. Capital sources split cleanly between traditional agencies and life company balance sheets, with execution timelines running 45 to 60 days from application to closing.

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Capital Stack

What a $10M Multifamily Acquisition Capital Stack Looks Like

At $10 million, the capital stack almost always defaults to either Freddie Mac or Fannie Mae DUS (Delivery Multifamily), with life company financing as a close alternative for borrowers seeking execution speed or portfolio retention. Agency loans dominate this size because pricing remains highly competitive, fixed-rate terms extend to 10 years, and underwriting standards reward stabilized properties with strong occupancy and unit economics. Life companies enter when sponsors prioritize loan certainty, reject rate risk, or need faster closing than agency timelines allow.

Capital Source Rate / Cost Size / LTV Notes
Regional or national agency (Freddie Mac DUS or Fannie Mae DUS Small) 6.25 percent fixed, 10-year term $6.5M to $10M / 70 percent LTV typical Dominates this bracket; full recourse or limited recourse available; 45 to 60 day closing timeline; strong pricing for 1.25x plus DSCR; seasoning requirement waived for quality sponsors
Life company balance sheet 6.35 to 6.50 percent fixed, 10 to 12 year term $5M to $10M / 55 to 65 percent LTV Alternative for sponsors seeking speed or portfolio loan structure; 30 to 45 day closing; recourse or non-recourse negotiable; insurance company appetite favors San Diego coastal and transit-oriented assets
Credit union or regional bank balance sheet 6.40 to 6.75 percent fixed, 7 to 10 year term $3M to $8M / 60 to 70 percent LTV Sporadic execution; strong fit for borrowers with prior lending relationships or California-based sponsors; shorter terms and higher recourse requirement typical; niche alternative when agency pipes are full
Debt fund or specialty lender 6.75 to 7.25 percent plus 2 to 3 percent origination, 5 to 7 year term $2M to $6M / 50 to 60 percent LTV Bridge or quick-close option; used when property requires work, sponsor credit is secondary, or timeline demands non-agency execution; not primary capital source for stabilized assets in San Diego

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

Sponsors executing $10 million multifamily acquisitions in San Diego typically carry $5 million to $20 million in liquid net worth and a track record of 3 to 8 prior apartment closings. Many are local or regional operators scaling from smaller buildings (under $5 million) or syndicators with strong investor bases and demonstrated value-add execution. Motivations range from acquiring stabilized, hold-and-refinance plays to opportunistic purchases of dated stock targeted for minor capital improvements and rent growth.

From the CLS CRE Pipeline

A Real $10M Example

We closed a $9.2 million fixed-rate acquisition loan for a 75-unit garden apartment complex in Clairemont in Q4 2025. The property was built in 1985, trading at below-market rents with an in-place 91 percent occupancy, making it an ideal value-add candidate. Our team executed an agency DUS loan at 6.21 percent fixed for 10 years, 72 percent LTV, with a 1.28x DSCR after projected rent increases. The sponsor, a repeat borrower with four prior apartment acquisitions, closed in 52 days; the lender included full loan assumption rights and no recourse carve-outs beyond standard fraud and environmental reps.

Anonymized. All deal references protect borrower and lender identity.

FAQ

$10M Multifamily Acquisition San Diego FAQ

Agency lenders typically require a minimum 1.25x DSCR covenant in the loan documents, with some life companies moving to 1.20x for high-quality sponsors. Underwriting itself will require 1.25x to 1.35x before pricing adjustments, but the covenant is the binding contractual floor. Violation triggers cross-default provisions and may require prepayment or refinance within 180 days.
Interest-only periods are rarely offered by agencies in San Diego at current rates; most Freddie and Fannie loans are fully amortizing over 10 years. Life companies will occasionally provide 2 to 3 years of interest-only for higher-leverage sponsors (60 to 65 percent LTV), but this costs 25 to 50 basis points in rate. Debt fund lenders are more flexible on IO, but pricing reflects the deferral and higher risk profile.
At 70 percent LTV (typical agency maximum), the sponsor pays 30 percent down, or $3 million in equity. Some sponsors layer in subordinate debt or mezzanine financing to reduce cash on hand, but agency lenders will cap first mortgage at 70 to 75 percent LTV regardless. Sponsor equity check should include acquisition closing costs (1.5 to 2 percent) and 6 to 12 months of operating reserves.
Agency DUS loans close in 45 to 60 days with complete applications and clean properties; life companies typically run 30 to 45 days; slower timelines often reflect incomplete sponsor documentation, property environmental issues, or underwriting rework. Borrowers should assume 60 days as the benchmark and plan cash flow accordingly. Lenders may accelerate by 7 to 10 days for experienced sponsors or repeat relationships.
Yes, most recent acquisitions (turnovers less than 1 year old) qualify for agency execution if the sponsor demonstrates sufficient experience and the property meets occupancy and rent thresholds. Freddie and Fannie waive seasoning for borrowers with three or more prior apartment closings; first-time buyers may face a 6 month hold or stabilization requirement. Property condition and market rent comparables matter more than time-in-portfolio for $10 million San Diego apartment loans.


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