$15M Multifamily Acquisition Chicago | Commercial Lending Solutions 
Loan Size Example

$15 Million Multifamily Acquisition in Chicago

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $15 million multifamily acquisition in Chicago represents a stabilized mid-market entry point into the city's core neighborhoods. At this size, borrowers are typically looking to purchase 75 to 150 unit Class B or Class B/C assets in established submarkets like Pilsen, Logan Square, or near the Loop. Lender appetite remains steady for this deal size given the combination of modest leverage, strong sponsorship, and Chicago's resilient multifamily fundamentals. Rate environment sits in the 5.75 to 6.25 percent range depending on credit strength and equity depth.

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Capital Stack

What a $15M Multifamily Acquisition Capital Stack Looks Like

At $15 million, the capital stack typically breaks into a 65 to 75 percent LTV first mortgage paired with 25 to 35 percent sponsor equity. A regional bank or a life company will be the primary lender at this size, with a handful of dedicated multifamily credit unions also competing actively. The choice between bank balance sheet and life company depends on execution speed, recourse tolerance, and whether the sponsor prefers longer amortization or interest-only periods.

Capital Source Rate / Cost Size / LTV Notes
Regional bank balance sheet 5.75 to 6.10 percent fixed rate, 10-year Treasury plus 250 to 275 basis points $11 million to $12 million, 70 to 75 percent LTV Fast 45 to 60 day close, full recourse to sponsor, typically 25 year amortization, standard DSCR covenant floor of 1.20x, locks in favorable execution before rate moves
Life insurance company 5.95 to 6.25 percent fixed rate, 10-year Treasury plus 265 to 290 basis points $9 million to $11 million, 60 to 70 percent LTV Non-recourse or limited recourse, longer amortization to 30 years available, interest-only periods up to 5 years, 90 to 120 day close, more flexibility on tenant mix and property condition
Multifamily credit union 5.80 to 6.15 percent fixed rate, spreads competitive with regional banks $10 million to $12 million, 65 to 72 percent LTV Member-focused pricing, will consider seasonal cash flow, competitive on recourse terms, 60 to 75 day timeline, strong for value-add deals with committed business plans
Sponsor equity Target 10 to 25 percent return, three to five year exit horizon $3.75 million to $5.25 million, 25 to 35 percent equity Equity is subordinated to first mortgage, typically includes value-add strategy or market arbitrage, reserves required for CapEx or lease-up, can be supplemented by preferred equity partner if leverage ceiling requires

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 Multifamily Acquisition Deal

Typical sponsors at this size have $25 million to $100 million in net worth, ten to twenty years of multifamily experience, and a track record of three to eight prior acquisitions in the Chicago market or similar Midwest metros. Motivations often center on acquiring off-market Class B assets with near-term value-add opportunities, refinancing maturing debt at better leverage, or building a small portfolio of stabilized hold assets for income. Most sponsors at $15 million are owner-operators or small funds that manage their own properties rather than third-party asset managers.

From the CLS CRE Pipeline

A Real $15M Example

CLS CRE closed a $14.8 million mortgage on a 94-unit Class B garden-style asset in a North Side neighborhood, originated through a regional bank at 6.02 percent fixed for 10 years with full recourse and a 25-year amortization schedule. The borrower purchased the property at $157,500 per unit and financed at 71 percent LTV with a 1.35x stabilized DSCR. The lender required a 9-month interest-only period to allow the sponsor time to implement unit renovations and lease new tenants before principal payment commenced, and approved a $350,000 operating reserve funded upfront from equity. The deal closed in 58 days and the property achieved 96 percent occupancy within 18 months.

Anonymized. All deal references protect borrower and lender identity.

FAQ

$15M Multifamily Acquisition Chicago FAQ

Most lenders will go to 70 to 75 percent LTV for stabilized assets in strong neighborhoods with experienced sponsors. Aggressive sponsors can push to 75 to 78 percent LTV if DSCR is 1.35x or higher, though this often requires a life company and non-recourse terms. The lower the DSCR or weaker the sponsor credit, the more conservative lenders become, often capping at 65 to 68 percent LTV.
Chicago benefits from deep lender familiarity and consistent deal flow, which typically results in tighter spreads and faster execution than secondary markets. Rates are usually 10 to 15 basis points tighter than Indianapolis or Memphis for comparable credits, and recourse negotiations favor sponsors more often. Regional banks and life companies compete aggressively in Chicago, which further narrows pricing and shortens close timelines.
Bank balance sheet lenders will almost always require full recourse to the sponsor at $15 million, sometimes with carve-outs for environmental or fraud only. Life companies will offer non-recourse or limited recourse (often covering debt yield and cash flow covenant breaches only) if leverage is kept to 65 to 70 percent LTV. Full recourse typically results in 20 to 30 basis points of rate advantage over non-recourse.
Bank balance sheet lenders typically limit IO to six to nine months unless the borrower is undergoing lease-up or major renovations. Life company lenders are more flexible and will accommodate 24 to 60 month IO periods if the sponsorship is strong and the business plan is clearly documented. IO extension or expansion is rarely approved after close, so sponsors should negotiate for the full IO period upfront.
Most lenders underwrite to a 1.25x to 1.35x stabilized DSCR with a 1.20x covenant floor. Value-add deals with repositioning can sometimes underwrite at lower DSCR if cash flow is expected to grow within 12 to 24 months, but the covenant will remain no lower than 1.15x. Recession scenarios or secondary markets may require 1.35x to 1.45x stabilized DSCR.


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