$15 Million Ground-Up Multifamily Construction in Dallas
By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions
A $15 million ground-up multifamily construction loan in Dallas reflects the strong appetite for new residential supply across the DFW market, where population growth and corporate relocations continue to drive demand. At this size, borrowers typically target 200 to 280 units in emerging submarkets like the Las Colinas corridor, Preston Center, or the Prosper area, where land and construction costs support the leverage. Lenders compete aggressively for this deal size because it sits at the sweet spot for agency execution and institutional balance sheet appetite, with rates currently tracking in the 8.0 to 8.5 percent range depending on sponsor profile and loan structure. Construction timelines typically run 18 to 24 months, with permanent conversion triggering immediately upon stabilization.
Get a Quote on Your $15M Deal →What a $15M Ground-Up Multifamily Construction Capital Stack Looks Like
At $15 million, the capital stack leans heavily on agency construction programs and regional bank partners, with life company takeout financing becoming increasingly common as the permanent loan option. Agency lenders dominate because Fannie Mae DUS Small Balance and Freddie Mac programs offer flexible construction terms and clear agency credit box alignment, while life companies typically step in as permanent lenders at 55 to 65 percent LTV once the property stabilizes. The choice between construction and permanent execution often hinges on sponsor experience, market timing, and whether the borrower wants fixed-rate certainty upfront or is willing to accept construction volatility in exchange for better permanent rates.
Pricing reflects active CLS CRE quote pipeline as of April 2026. Specific deal pricing depends on sponsor, property, and structure.
Who Closes a $15M Ground-Up Multifamily Construction Deal
Successful $15 million ground-up sponsors in Dallas typically have minimum $30 million to $50 million in net worth, 15 to 25 years of multifamily development experience, and a proven track record of 3 to 5 completed ground-up projects. These operators are often repeat borrowers with existing relationships to agency and life company lenders, allowing them to move quickly through credit underwriting and close in 45 to 75 days. Motivations center on capturing value creation across the construction phase, playing demographic tailwinds in DFW, and refinancing construction debt into permanent financing at lower fixed rates once the property reaches 85 to 90 percent lease-up.
A Real $15M Example
CLS closed an $14.8 million construction loan for a 264-unit garden-style community in the Prosper submarket in early 2025, with a regional bank providing the construction platform at 8.15 percent fixed, 75 percent LTC, and a life company committing permanent financing at 8.5 percent fixed, 62 percent LTV with a 1.25x DSCR covenant. The sponsor was an experienced DFW multifamily developer with six prior ground-up projects, contributing $4.2 million in equity and securing agency blessing for the general contractor and design team within 30 days of application. Construction commenced in Q2 2025 with a 20-month timeline to stabilization, and the permanent lender approved the conversion at month 19 when the property reached 91 percent occupancy and $2,245 per unit average rent, locking in a 10 to 12 percent sponsor IRR over a 5-year hold.
Anonymized. All deal references protect borrower and lender identity.
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