$20M Multifamily Acquisition Dallas | Commercial Lending Solutions 
Loan Size Example

$20 Million Multifamily Acquisition in Dallas

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $20 million multifamily acquisition in Dallas represents a solid mid-market entry point for institutional and semi-institutional sponsors seeking core-plus or value-add positioning in one of the nation's fastest-growing rental markets. Dallas multifamily fundamentals remain resilient, with consistent population inflows, moderate new supply relative to demand, and strong rent growth supporting stable underwriting. At this loan size, borrowers typically find themselves at the sweet spot where agency execution dominates pricing and terms, with 10-year fixed rates landing in the 5.75 to 6.00 percent range depending on leverage, property quality, and sponsor strength. Lender appetite remains robust across both the agency and life company channels, though execution windows and rate locks are tightening as market conditions reset.

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Capital Stack

What a $20M Multifamily Acquisition Capital Stack Looks Like

A $20 million loan in the Dallas multifamily space is almost always executed through agency DUS (Freddie Mac or Fannie Mae) at 60 to 70 percent LTV, where competitive tension between agencies and strong secondary market execution keep rates tight and terms borrower-friendly. Life companies occasionally compete at 55 to 65 percent LTV for sponsors with strong track records and lower leverage appetites, but agency execution typically wins on rate and speed.

Capital Source Rate / Cost Size / LTV Notes
Agency (Freddie Mac DUS or Fannie Mae DUS) 5.75 to 6.00 percent fixed, 10-year $20M / 60 to 70 percent LTV typical Primary execution path; 30 day rate lock standard; full recourse or partial recourse structure negotiable; 2 to 3 month underwriting timeline; strong pricing pressure between agencies
Life company 5.90 to 6.25 percent fixed, 10-year or longer $11 to $13M / 55 to 65 percent LTV typical Preferred for sponsors seeking lower leverage; longer underwriting window; strong preference for stabilized, fully leased properties; may include interest-only period of 1 to 3 years
Regional bank balance sheet 5.95 to 6.35 percent fixed, 7-year or 10-year $12 to $16M / 65 to 75 percent LTV typical Faster decision-making; may accept value-add and lease-up scenarios; stronger recourse requirements; limited to borrowers with existing banking relationships or strong local presence
Debt fund or specialty lender 6.50 to 7.50 percent, mixed fixed and floating $8 to $14M / 70 to 80 percent LTV typical Used for bridge or higher leverage scenarios; faster deployment; shorter terms (3 to 5 years); typically includes prepayment penalties or yield maintenance

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 $20M Multifamily Acquisition Deal

The typical sponsor closing a $20 million multifamily acquisition in Dallas is a regional or emerging national operator with $50 to $250 million in assets under management, 3 to 10 prior acquisitions, and a demonstrated ability to source and stabilize value-add assets. Common motivations include portfolio expansion into the Dallas rent growth narrative, repositioning of an existing property, or refinance of previously acquired stock to recycle capital. These sponsors maintain net worth of $5 to $15 million, demonstrate 5 to 15 years of CRE operating experience, and typically aim for 1031 exchanges or core-plus return profiles in the 6 to 8 percent range.

From the CLS CRE Pipeline

A Real $20M Example

We closed a $20.2 million Freddie Mac DUS transaction for a 185-unit garden-style property in the Irving submarket, acquired at 6.4 percent gross cap rate with 15 percent deferred maintenance and a seasoned operator as sponsor. The loan executed at 5.88 percent fixed for 10 years on a 68 percent LTV basis, with standard agency recourse and a 2-year value-add runway built into the underwriting. The 1.15 DSCR covenant proved achievable through modest $150 per unit annual rent growth and a 6 percent operating expense reduction, and the agency funded in 64 days from application. The sponsor successfully repositioned the property over 24 months, achieved 92 percent occupancy, and refinanced into a permanent life company take-out at 5.65 percent as a fully stabilized asset.

Anonymized. All deal references protect borrower and lender identity.

FAQ

$20M Multifamily Acquisition Dallas FAQ

Agency loans typically require a 1.10 to 1.20 DSCR covenant, with 1.15 being the market standard for stabilized properties. Life companies may push to 1.25 DSCR on leverage below 60 percent LTV, while higher leverage bank or debt fund structures sometimes accept 1.05 to 1.10. Underwriting DSCR is often modeled conservatively at 1.20 to 1.30 to ensure covenant compliance throughout the loan term.
Agency DUS loans generally do not include interest-only periods at this size and leverage; full amortization over 10 years is standard. Life company and bank loans may offer 1 to 3 years of IO for borrowers pursuing active repositioning or lease-up strategies, though IO periods add 15 to 25 basis points to the rate. Most experienced sponsors in the Dallas market waive IO requests to improve rate pricing.
Sponsor experience has a 20 to 40 basis point impact on final rate pricing at this size. A sponsor with 5 or more closed transactions and $100+ million AUM typically prices 20 to 30 basis points better than a first-time or single-asset sponsor, all else equal. Agency underwriters also move faster and impose fewer conditions for experienced repeat borrowers, reducing overall closing timeline by 2 to 3 weeks.
Agency locks are typically honored for 30 days from approval, with a 15 day extension available for a small fee (usually 1 to 2 basis points). Life company locks are generally 60 days and may extend to 90 days for an upfront rate adjustment. Most borrowers should expect 60 to 75 days from rate lock to closing; locking too early risks expiration, while locking too late creates time pressure on underwriting completion.
Agency DUS loans can be executed with full recourse, limited recourse, or carve-out recourse depending on sponsor strength and property quality. Full recourse loans typically price 5 to 10 basis points better than limited or carve-out structures. Most sponsors with net worth above $10 million and prior acquisition experience can negotiate carve-out recourse limited to fraud, misappropriation, and environmental liability, which provides reasonable personal protection while preserving rate pricing.


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