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

$15 Million Multifamily Acquisition in Phoenix

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $15 million multifamily acquisition in Phoenix represents a core-plus to value-add entry point for experienced sponsors targeting the metro's supply-constrained submarkets. Phoenix's sustained population growth, favorable rent trajectory, and relatively stable cap rate environment (4.5 to 5.5 percent for Class B/C assets) make this loan size attractive to institutional and semi-institutional operators alike. At this volume, borrowers typically target 65 to 75 percent LTV with DSCR of 1.20x to 1.35x, and rate execution currently ranges from 5.75 to 6.25 percent depending on lender type and sponsorship strength. The market favors agency execution, though life company and bank balance sheet options remain viable for sponsors with strong track records and stabilized cash flow.

Get a Quote on Your $15M Deal →
Capital Stack

What a $15M Multifamily Acquisition Capital Stack Looks Like

Freddie Mac DUS and Fannie Mae DUS dominate the $15 million multifamily execution in Phoenix, typically capturing 70 to 90 percent of deals at this volume. Life companies step in as secondary sources when leverage exceeds agency comfort or when sponsors prefer longer interest-only periods and portfolio-style servicing. Lender selection hinges on loan-to-value, sponsor experience, property stabilization timeline, and any non-recourse requirements.

Capital Source Rate / Cost Size / LTV Notes
Agency DUS (Freddie or Fannie) 5.75 to 6.10 percent fixed, 10-year term $12M to $15M at 65 to 75 percent LTV Primary execution for seasoned sponsors with stabilized assets. Full recourse. Standard 5/25 amortization. 30 to 45 day close.
Regional bank balance sheet 5.90 to 6.35 percent, 5 to 7 year fixed or ARM $8M to $15M at 60 to 70 percent LTV Relationship-driven lender favoring local sponsors. Faster underwriting (20 to 30 days). May offer interest-only period of 2 to 3 years. Portfolio hold mentality.
Life company 6.00 to 6.40 percent fixed, 10 to 12 year term $9M to $13M at 55 to 65 percent LTV Preferred for value-add and transitional assets. Longer interest-only runway (3 to 5 years available). Non-recourse optionality at higher leverage. 45 to 60 day timeline.
Freddie Mac Optigo or Fannie Small portfolio 6.10 to 6.50 percent, 10-year fixed $10M to $15M at 70 to 80 percent LTV Flexible underwriting for younger or smaller sponsors. Adjustable amortization periods. 35 to 50 day close. Recourse standard.

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

The typical sponsor for a $15 million Phoenix multifamily acquisition is a regional or semi-institutional operator with $30 million to $100 million in net worth and a track record of 3 to 8 closed deals. This operator often has prior agency or bank relationships, clean financial statements, and operating experience in Arizona or the Southwest. Common motivations include acquisition of off-market or lightly-marketed Class B assets, value-add repositioning (rent-up, unit mix improvement, amenity upgrade), and refinance-and-acquisition combinations within their existing portfolio.

From the CLS CRE Pipeline

A Real $15M Example

A sponsor based in Scottsdale acquired a 124-unit Class B garden-style asset in Chandler with a $12.8 million agency DUS loan at 5.85 percent, 10-year fixed, 65 percent LTV, and 1.28x DSCR on stabilized pro forma. The asset had undergone selective unit renovations and was 88 percent occupied at closing. The lender required a 2-year DSCR covenant of 1.15x and standard full recourse. The borrower executed a 3-year lease-up plan targeting 96 percent occupancy and 4.5 percent annual rent growth. The deal closed in 38 days, and the sponsor retained the asset in long-term hold strategy.

Anonymized. All deal references protect borrower and lender identity.

FAQ

$15M Multifamily Acquisition Phoenix FAQ

Most agency and bank lenders execute between 65 to 75 percent LTV for stabilized or near-stabilized assets. Life companies may go 55 to 65 percent LTV. Value-add and transitional properties may qualify for 75 to 80 percent LTV with life companies, but this triggers longer underwriting and potential interest-only concessions. The determining factor is sponsor experience and property stabilization timeline.
Agency loans (Freddie or Fannie) typically close in 30 to 50 days from formal application to funding. Regional banks move faster, often in 20 to 35 days, but have tighter documentation requirements. Life companies average 45 to 65 days and require more extensive financial underwriting and appraisal review. Having clean sponsor financials, recent property operating statements, and clear title documents accelerates the timeline significantly.
Stabilized properties typically require a minimum DSCR of 1.15x to 1.25x at closing, with covenant DSCR (ongoing compliance requirement) set at 1.10x to 1.15x. Transitional or value-add assets may close at 1.00x to 1.10x pro forma DSCR, with the lender expecting significant improvement within 24 to 36 months. Agency lenders enforce stricter DSCR standards than life companies, which often accept longer ramp periods in exchange for higher rates.
Yes. Agency lenders typically offer 1 to 2 years of interest-only. Life companies offer longer interest-only periods of 3 to 5 years, especially on value-add deals where the sponsor is executing a defined rent-up or capital plan. Regional banks may include 2 to 3 years interest-only as a relationship retention tool. Interest-only terms reduce initial debt service and are highly negotiable at this loan size.
Absolutely. Submarkets with strong historical absorption (Chandler, Gilbert, North Scottsdale) and limited pipeline command tighter spreads and lower rates because lender risk is lower. Softer submarkets or oversupplied areas may see 25 to 50 basis points of rate premium. Current Phoenix rent growth of 3.5 to 4.5 percent annually supports lender confidence, keeping rates in the 5.75 to 6.25 percent range. Occupancy and unit turnover velocity also influence pricing within that band.


Get a Quote on Your $15M Deal

Tell us about your transaction. We will run it past lenders that actively fund this size and product type and send back terms within 48 hours.

Apply for Financing →
Or call us: 310.708.0690

Weekly Market Intelligence

Rate updates, deal insights, and capital markets analysis. One email per week. Unsubscribe anytime.

No spam. No selling your data. Just market intelligence from a working broker.

Need financing? Apply in 2 minutes. Response within 24 hours.
Apply Now →
📈

Before You Go…

Get matched with the right lender from our network of 1,000+ capital sources.

Or call us: 310.708.0690

No spam. Unsubscribe anytime.