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

$15 Million Multifamily Refinance in Phoenix

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $15 million multifamily refinance in Phoenix represents the sweet spot for borrowers looking to capture current market conditions while maintaining broad lender competition. The Phoenix multifamily market has stabilized after 2023 volatility, with Class B and C garden-style apartments trading at 5.5 to 6.5 percent cap rates depending on submarket and unit mix. At this loan size, sponsors have access to both agency platforms and balance sheet lenders, each with distinct speed, leverage, and rate profiles. Rate environment in early 2026 is anchored to 10-year Treasury yields in the 4.0 to 4.5 percent range, translating to fixed-rate execution near 5.50 percent for well-positioned borrowers.

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Capital Stack

What a $15M Multifamily Refinance Capital Stack Looks Like

The $15 million ticket attracts a mix of agency DUS lenders and regional bank balance sheet desks competing aggressively for Phoenix multifamily cash-out refinances. Agency platforms dominate this size because they offer leverage up to 75 percent LTV, pricing efficiency, and 30-year amortization that works for stabilized hold strategies. Lender selection typically hinges on speed to close, recourse tolerance, and whether the sponsor prefers rate certainty (agency fixed) or execution flexibility (bank with floating options).

Capital Source Rate / Cost Size / LTV Notes
Agency DUS (Freddie Mac / Fannie Mae) 5.50 to 5.75 percent fixed, 30-year amortization $11.25M at 75 percent LTV; full $15M loan at 60 to 65 percent LTV Primary execution for stabilized Phoenix multifamily. Fixed rate locks in at close. Occupancy and DSCR requirements (typically 1.20x minimum) are standard. 45 to 60 day closing timeline. Full recourse on sponsor with net worth and liquidity verification.
Regional bank balance sheet 5.65 to 6.10 percent fixed, or SOFR plus 175 to 225 basis points floating $15M at 70 to 75 percent LTV Faster underwriting (30 to 45 days) and more flexible on recourse. Some banks will offer interest-only periods (1 to 3 years) to improve sponsor cash flow. Preferred for sponsors with liquidity or who anticipate market conditions improving year-over-year.
Life company (insurance-backed lender) 5.80 to 6.20 percent fixed, 30-year amortization, lower leverage $9M to $11.25M at 55 to 65 percent LTV Longer-term capital with no prepay penalty for 5 to 7 years. Better suited for sponsors planning extended hold strategies or managing higher debt service reserves. Slower closing (60 to 90 days) but very competitive on rate for lower-leverage structures.
Credit union lending consortium 5.55 to 5.95 percent fixed, 30-year amortization $10M to $15M at 70 to 72 percent LTV Emerging option for multifamily in Phoenix. Strong portfolio lenders with selective underwriting. Require strong sponsor track record and market knowledge. Closing timeline 45 to 60 days. Recourse standard but willing to negotiate for experienced sponsors.

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 executing a $15 million multifamily refinance in Phoenix is an experienced operator with $50 million to $150 million in AUM, prior exits in multifamily, and a seasoned management team handling day-to-day operations. These sponsors often hold a portfolio of 300 to 800 units across Phoenix, Tucson, and surrounding markets, and are motivated by rate-and-term opportunities, cash-out redeployment into development, or acquisition of adjacent buildings. Net worth requirements for agency execution are $1.5 million to $3 million liquid, with demonstrated DSCR of 1.25x or better on the subject property.

From the CLS CRE Pipeline

A Real $15M Example

CLS CRE closed a $14.8 million Freddie Mac DUS refinance on a 186-unit Class B garden-style apartment community in central Phoenix in Q3 2025. The sponsor owned and operated the property for eight years with average occupancy above 94 percent. The fixed-rate execution was 5.48 percent on a 30-year amortization at 72 percent LTV, resulting in a cash-out of approximately $2.1 million. The 45-day closing timeline allowed the sponsor to redeploy capital into an adjacent off-market acquisition before year-end. The underlying DSCR was 1.32x, well above lender covenant minimums, and the sponsor retained full recourse backed by $2.8 million in liquid reserves.

Anonymized. All deal references protect borrower and lender identity.

FAQ

$15M Multifamily Refinance Phoenix FAQ

At this size, leverage brackets overlap: agency platforms compete aggressively at 70 to 75 percent LTV, while regional banks match or exceed agency rates and add execution flexibility. Sponsors benefit from lender competition, which drives pricing down and terms more favorable. The $15M size is large enough to justify bank underwriting resources but small enough to avoid CMBS complexity, creating a sweet spot for capital sources.
Fixed-rate execution in early 2026 is clustering around 5.45 to 5.75 percent for 30-year amortization, depending on lender type and LTV. Floating-rate options (SOFR plus spread) are running 175 to 225 basis points and appeal to sponsors anticipating rate declines or seeking near-term cash flow relief. The 10-year Treasury is the rate benchmark, currently 4.0 to 4.5 percent, and agency spreads have normalized after 2024 volatility.
Agency DUS lenders require minimum 75 to 85 percent occupancy (trailing 12 months) and DSCR of 1.20x, with covenant DSCR typically 1.15x. Bank balance sheet lenders are more flexible, often accepting 70 to 80 percent occupancy and 1.15x DSCR minimum. Life companies and credit unions may require higher DSCR (1.25x to 1.30x) to offset longer-term capital commitment and lower leverage tolerance.
Loan-to-value ranges from 55 to 75 percent depending on lender type and sponsor profile. Agency DUS lenders max at 75 percent LTV for stabilized properties with strong occupancy and DSCR. Regional banks and credit unions are competitive at 70 to 72 percent LTV. Life companies typically cap at 60 to 65 percent LTV because of longer-term capital and conservative underwriting. Actual leverage hinges on property NOI, occupancy history, and sponsor net worth.
Agency DUS closings average 45 to 60 days from complete application to funding. Regional banks are faster, often 30 to 45 days, because balance sheet underwriting is streamlined. Life companies and credit unions typically require 60 to 90 days due to longer review periods and deliberate underwriting process. Sponsors should expect 10 to 15 days for title, appraisal, and environmental inspections regardless of lender type.


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