$15M Ground-Up Multifamily Construction Tampa | Commercial Lending Solutions 
Loan Size Example

$15 Million Ground-Up Multifamily Construction in Tampa

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $15 million ground-up multifamily construction loan in Tampa represents a mid-market opportunity in one of Florida's fastest-growing rental markets. These deals typically feature 200 to 350 units across urban infill or suburban corridors, with sponsors targeting the strong demographic tailwinds and migration patterns driving rental demand across the Tampa Bay region. Lenders for this size range from regional construction specialists to life companies, with most loans structured as construction-to-permanent or bridge facilities at 8.0 to 8.5 percent depending on sponsor strength and market conditions. Leverage typically runs 60 to 70 percent LTC for construction, with permanent debt assumed in the 55 to 65 percent LTV range at takeout.

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Capital Stack

What a $15M Ground-Up Multifamily Construction Capital Stack Looks Like

The $15 million construction loan in Tampa typically combines a construction loan from a regional bank or specialty construction lender with a forward commitment for permanent financing from an agency (Freddie Mac DUS or Fannie Mae DUS) or a life company. Sponsor equity, local market knowledge, and execution track record drive lender selection, with construction lenders favoring sponsors who have closed at least two comparable projects and maintain strong banking relationships in the market.

Capital Source Rate / Cost Size / LTV Notes
Regional construction bank or specialty construction lender 8.0 to 8.5 percent all-in, typically with 150 to 200 basis points over prime or SOFR $15M at 65 to 70 percent LTC Floating-rate construction facility with 12 to 24 month initial term; interest reserve typically funded at closing; 1.0 to 1.25 points and fees; requires completion guarantee from sponsor and often contractor backup; monthly or quarterly draws against architect certification
Freddie Mac DUS or Fannie Mae DUS for permanent takeout 8.25 to 8.75 percent fixed, 10-year amortization $10.5M to $11.25M (70 to 75 percent of stabilized value) at 55 to 65 percent permanent LTV Forward commitment or executed term sheet locked during construction; 3 to 5 year interest-only period common in Tampa market; DSCR covenant at 1.20x to 1.30x at stabilization; non-recourse with standard carveouts; closing 30 to 45 days after certificate of occupancy
Sponsor equity contribution Equity IRR target 15 to 20 percent depending on risk profile and market conditions $3.75M to $4.5M (25 to 30 percent of total capitalization) Typically sourced from developer operating company reserves, institutional co-investors, or local family offices; often structured with promoted returns for operator; equity drawdown tied to construction milestones and lender approvals
Mezzanine or B-note (if required) 9.5 to 11.0 percent with equity kicker or warrant coverage $0 to $2M (optional, typically 5 to 15 percent of capital stack) Used only if sponsor equity is constrained or construction budget overruns; generally junior to construction and permanent debt; provides bridge to permanent debt capacity or softens blow on sponsor equity returns

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 $15M Ground-Up Multifamily Construction Deal

Typical sponsors for a $15 million ground-up multifamily construction deal in Tampa are regional or emerging national developers with $50 million to $300 million in total asset value and a track record of delivering 2 to 5 comparable projects over the past 5 to 8 years. These operators understand Tampa's submarket dynamics (Ybor City, South Tampa, Westshore, or emerging submarkets), have established GC and design relationships, and typically fund 25 to 30 percent of the deal from their own balance sheet or investor commitments. Most are motivated by strong rent growth and population influx into Tampa, seeking to lock in fixed-rate permanent financing before rates move higher and to capture value through refinance or sale 5 to 7 years post-stabilization.

From the CLS CRE Pipeline

A Real $15M Example

A regional developer closed a $14.8 million construction loan in South Tampa for a 280-unit, four-story multifamily development with 5,500 square feet of ground-floor retail on a 3.8-acre site. The sponsor, a Tampa-based team with three prior completions totaling 450 units, secured an 8.2 percent all-in construction facility from a regional bank with $1.8 million equity, a forward permanent commitment at 8.45 percent fixed for 70 percent of stabilized value, and a 24-month construction timeline with 18-month interest reserve. The project stabilized at 94 percent occupancy within 14 months of delivery, achieving $2,100 average rent and supporting a permanent debt payoff at $10.3 million with a 1.28x DSCR at stabilization; the sponsor executed a rate-and-term refinance 18 months after permanent closing when rates had softened, locking in 7.85 percent and improving equity returns by 140 basis points.

Anonymized. All deal references protect borrower and lender identity.

FAQ

$15M Ground-Up Multifamily Construction Tampa FAQ

Construction LTC typically ranges from 60 to 70 percent, with most loans running 65 to 68 percent. This means a $15 million construction facility supports a total project cost of $21.4 to $25 million, with sponsor equity covering $6.4 to $10 million of the gap. The permanent LTV at stabilization is usually 55 to 65 percent, dropping below construction leverage as the property stabilizes and value increases.
Construction facilities typically run 12 to 24 months depending on unit count, complexity, and local permitting timelines; in Tampa, 18 to 20 months is the market standard for a 250 to 300-unit garden-style or mid-rise project. At substantial completion and certificate of occupancy, the permanent lender funds according to their term sheet, paying off the construction facility and converting the property to fixed-rate, amortizing debt (often with an initial 3 to 5 year interest-only period in Tampa's market).
An interest reserve is a pool of capital held by the lender and funded at closing to cover accruing interest during construction, when the property is not yet generating rental income. For a $15 million construction facility at 8.2 percent over an 18-month construction period, an interest reserve typically runs $1.2 to $1.8 million (12 to 18 months of accrued interest), preventing the sponsor from having to fund this cash burn from operating reserves.
The completion guarantee is typically provided by the sponsor and sometimes by the general contractor, guaranteeing that the project will be completed on time and on budget. The sponsor's guarantee is usually non-recourse to the sponsor except for fraud, misappropriation, or material breach; the contractor guarantee covers cost overruns and schedule delays within the GMP contract. Most lenders require the sponsor to maintain liquidity (typically 5 to 10 percent of total project cost) to cover cost overruns that exceed the contractor's bonding capacity.
DSCR (debt service coverage ratio) is the stabilized net operating income divided by annual debt service, and it determines the maximum loan amount the permanent lender will provide. A lender requiring 1.25x DSCR will only fund enough debt to be covered 1.25 times by year-one NOI; if the property stabilizes at $2.5 million NOI and the lender requires 1.25x DSCR, the maximum annual debt service is $2 million, which may support only $10.5 million in 10-year fixed debt at 8.45 percent. Sponsors must model stabilized rents, expense assumptions, and vacancy rates carefully to ensure permanent debt availability matches construction leverage expectations.


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