$15M Multifamily Refinance Dallas | Commercial Lending Solutions 
Loan Size Example

$15 Million Multifamily Refinance in Dallas

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $15 million multifamily refinance in Dallas sits at the sweet spot where agency execution dominates but life company balance sheet capacity remains viable. These loans typically carry leverage in the 60 to 70 percent LTV range on stabilized Class B and Class C assets across submarkets like Oak Lawn, Uptown, and East Dallas. Borrowers are refinancing to lock in permanent debt at current 10-year Treasury spreads around 5.55 percent, capturing improved net operating income from rent growth and operational efficiency over the past 24 to 36 months. Agency appetite remains strong for Dallas multifamily, making this loan size one of the most efficient executions in the current market.

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Capital Stack

What a $15M Multifamily Refinance Capital Stack Looks Like

At this loan size, Freddie Mac DUS and Fannie Mae DUS Small programs compete aggressively with life company balance sheet lenders for execution. Borrowers with strong sponsorship and assets showing consistent rent growth typically prefer agency execution for certainty, speed, and non-recourse availability at loan sizes up to $20 million. Life companies enter the market when borrowers seek longer recourse tail-off, interest-only periods, or when asset DSCR and cash-on-cash returns favor a 55 to 65 percent LTV structure.

Capital Source Rate / Cost Size / LTV Notes
Agency DUS (Freddie or Fannie franchise) 5.45 to 5.65 percent fixed, 10-year $15M at 65 to 70 percent LTV Non-recourse, 35 to 40 year amortization, cash-on-cash and DSCR covenant typically 1.20x minimum, 30 to 45 day close
Regional bank balance sheet 5.50 to 5.75 percent fixed, 10-year to adjustable $15M at 60 to 70 percent LTV Full or partial recourse, customized prepayment and extension provisions, relationship-driven pricing, 45 to 60 day close
Life company portfolio lending 5.65 to 5.85 percent fixed, 10-year or longer $15M at 55 to 65 percent LTV Recourse or limited recourse, interest-only periods up to 5 years available, slower underwriting, preference for Class A assets and high-net-worth sponsors
Freddie Mac Optigo SBL (for smaller position) 5.40 to 5.60 percent fixed, 10-year Up to $7.5M first-lien position only Non-recourse, secondary position unlikely, best for sponsors wanting full agency execution on smaller asset split

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 Refinance Deal

The typical sponsor refinancing $15 million in Dallas multifamily has assembled a 5 to 50 property portfolio, with net worth exceeding $10 to $25 million and demonstrated experience across multiple Dallas submarkets. These borrowers are repeat refinancers seeking permanent financing for cash-flowing assets that have appreciated or stabilized under their operation, often combining value-add execution with longer-term hold strategies. Motivations include locking in fixed rates before potential rate volatility, reducing leverage to improve cash flow, or repositioning capital from a maturing asset into new acquisition.

From the CLS CRE Pipeline

A Real $15M Example

We closed a $14.8 million agency DUS refinance on a 186-unit Class B garden-style asset in the East Dallas submarket that was originally built in the 1990s and acquired by the sponsor four years prior at a value-add entry. The borrower had stabilized the property with selective unit renovations and amenity upgrades, pushing average rent from $950 to $1,140 per unit and reducing turnover by 15 percent. We executed with a national agency DUS lender at 5.52 percent fixed, 30-year amortization, 65 percent LTV, resulting in a 1.32x DSCR and a 30-day close. The non-recourse structure and predictable permanent financing allowed the borrower to redeploy equity into a second acquisition in Irving.

Anonymized. All deal references protect borrower and lender identity.

FAQ

$15M Multifamily Refinance Dallas FAQ

Agency DUS programs at this size offer lower rates (5.45 to 5.65 percent), non-recourse optionality, and faster execution (30 to 45 days) compared to life companies, which typically price 15 to 35 basis points higher and carry full or extended recourse. For borrowers with strong sponsorship and stabilized assets showing 1.20x-plus DSCR, the agency path is almost always more efficient. Life companies become attractive only when borrowers need interest-only periods, longer recourse tail-off, or are working with lower-leverage structures below 55 percent LTV.
Agency lenders are comfortable with 1.20x minimum DSCR covenant and 65 to 70 percent LTV on Class B and newer Class C assets; Class C below-market rents and older stock may need 1.25x to 1.35x DSCR and 55 to 60 percent LTV. Current 10-year Treasury around 4.20 to 4.35 percent plus agency spreads of 120 to 145 basis points yield rates in the 5.45 to 5.65 percent range. Always stress-test underwriting for 6.50 to 7.00 percent refinance rates and 90 percent occupancy to account for Dallas market cyclicality.
Agency DUS execution typically closes in 30 to 45 days once underwriting is complete; the biggest time driver is appraisal turnaround and sponsor financial documentation. Regional banks often run 45 to 60 days with more manual underwriting and relationship review, while life companies can stretch 60 to 90 days due to committee review and deeper credit analysis. Starting with clean financials (two to three years of tax returns, current rent roll, and utility invoices) compresses timeline significantly.
Regional banks are viable competitors if you have existing relationship, need flexibility on recourse or prepayment terms, or prefer customized amortization (e.g., 40-year payout). Their rates are typically 5 to 10 basis points higher than agency DUS but may include interest-only periods, extended prepayment windows, or relationship pricing that justifies the premium. If you're rate-shopping in a flat market, agency DUS will almost always be cheaper, but relationship-driven banks may move faster or ask fewer questions on sponsor experience.
Lenders are most receptive to Class B garden-style or mid-rise assets in core submarkets (Oak Lawn, Uptown, Deep Ellum, East Dallas) showing year-over-year rent growth of 3 to 5 percent, occupancy above 92 percent, and minimal deferred maintenance. Properties with strong management (long-term property manager, professional PMC), diversified tenant base (no single tenant above 5 percent of rent), and visible value-add upside (renovated units commanding 10 to 15 percent rent premiums) get best execution. Avoid older (pre-1980) stock with structural issues, properties in secondary submarkets with slowing rent growth, or those with high tenant turnover above 30 percent.


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