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

$10 Million Multifamily Acquisition in Seattle

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $10 million multifamily acquisition in Seattle represents the sweet spot for institutional-grade execution without requiring the complexity of jumbo structures. Seattle's tight rental market, sustained by Amazon and tech sector growth, supports acquisition pricing in the $250,000 to $350,000 per unit range for stabilized Class B and B+ assets. At this loan size, borrowers access agency debt paired with moderate equity, typically achieving 65 to 70 percent LTV with rates in the 6.25 percent range off a 10-year Treasury base. The deal appeals to experienced sponsors with $5 million to $10 million of net worth and a track record of 3 to 5 prior acquisitions.

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Capital Stack

What a $10M Multifamily Acquisition Capital Stack Looks Like

Capital stacking for $10 million Seattle multifamily deals splits cleanly between agency debt (60 to 70 percent LTV) and sponsor equity. Freddie Mac Optigo Small Balance Loan and Fannie Mae DUS Small dominate at this size due to lower execution costs and faster timelines compared to standard DUS conduits. Life company debt enters the mix only when sponsors want to push leverage above 70 percent LTV or require interest-only terms beyond standard agency parameters.

Capital Source Rate / Cost Size / LTV Notes
A regional agency lender (Freddie Mac Optigo SBL or equivalent) 6.25 to 6.50 percent, 10-year Treasury plus 165 to 185 basis points $7 million to $10 million (65 to 70 percent LTV) 5 to 7 year fixed rate, standard amortization (25 to 30 years), full recourse, 48 to 60 day close
A regional or national life company 6.40 to 6.75 percent for 65 to 70 percent LTV; lower cost at 55 to 60 percent LTV $5.5 million to $7 million (55 to 70 percent LTV) 3 to 5 year interest-only option, higher leverage appetite, 30 to 45 day close, subordination flexibility
Sponsor equity (cash and/or preferred equity) Equity return hurdle 8 to 12 percent IRR depending on value-add profile $3 million to $5 million (30 to 35 percent of deal cost) Aligns with agency LTV caps and risk appetite; higher for repositioning or Class C acquisitions
Mezzanine or preferred equity (optional) 7.5 to 9.5 percent coupon plus 1.5 to 2.5 percent management fee $1 million to $2 million Used to bridge equity gap when sponsor has less capital; lengthens close by 10 to 15 days; common for value-add deals

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

Typical borrowers for $10 million Seattle acquisitions are established local or regional operators with $8 million to $15 million of liquid net worth and a portfolio of 4 to 8 prior multifamily deals. Most are refinancing or rolling equity from a 2020 to 2022 acquisition into new deals, capitalizing on Seattle's supply constraints and resident income growth above the regional average. Operators often hold 25 to 35 percent equity themselves and manage either value-add repositioning (unit renovations, amenity upgrades) or pure stabilized acquisitions targeting 4.5 to 5.5 percent cash-on-cash returns.

From the CLS CRE Pipeline

A Real $10M Example

A sponsor acquired a 32-unit Class B apartment building in the Greenwood submarket of Seattle for $9.8 million in late 2025. The regional agency lender provided $6.9 million (70 percent LTV) at 6.25 percent fixed for 10 years on a 28-year amortization, with a 5-year rate lock and standard recourse. The sponsor contributed $2.1 million of equity and used an additional $900,000 of preferred equity from a local investor to fund a 12-unit, $1.2 million unit renovation program focused on kitchen and bathroom upgrades. The deal closed in 52 days, achieved a 5.2 percent pro forma cash-on-cash return, and refinanced into a life company facility 18 months later at 65 percent LTV as rents stabilized.

Anonymized. All deal references protect borrower and lender identity.

FAQ

$10M Multifamily Acquisition Seattle FAQ

As of 2026, agency loans (Freddie Mac SBL, Fannie Mae DUS Small) are pricing at 6.25 to 6.50 percent for 10-year fixed terms off a 10-year Treasury base plus 165 to 185 basis points. Life company debt runs 15 to 40 basis points higher depending on LTV and interest-only structure. Rates remain volatile with Treasury movements; locking early is prudent for sponsors with defined closing dates.
Standard agency products (Freddie SBL, Fannie DUS Small) do not offer interest-only periods beyond 6 to 12 months. A life company lender will provide 3 to 5 years of interest-only if you accept leverage in the 55 to 65 percent LTV range and a slightly higher rate. If your value-add plan requires extended IO, expect to cost yourself 40 to 60 basis points or limit LTV.
Agency lenders typically require a minimum 1.20x DSCR on pro forma NOI with a 1.25x covenant in the loan agreement. Life companies are occasionally more flexible at 1.15x pro forma if the sponsor has strong reserves and track record. If your property underutilizes below 1.20x, you will need to reduce the loan amount or increase equity.
Agency lenders (Freddie Mac Optigo, Fannie Mae DUS Small) close in 45 to 60 days from application if underwriting is clean and the property appraises on value. Life companies take 35 to 50 days but require more depth on your business plan and sponsor resume. Expect 10 to 15 additional days if preferred or mezzanine equity is involved due to subordination documentation.
Agency lenders require full recourse with no carve-out; recourse is a core requirement for Freddie Mac Optigo and Fannie Mae DUS Small at any loan size. Life companies occasionally offer a 5 to 10 percent recourse carve-out if DSCR is strong (1.25x+) and you have significant sponsor liquidity, but this is rare and lowers your rate by only 5 to 10 basis points.


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