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

$20 Million Multifamily Acquisition in Miami

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $20 million multifamily acquisition in Miami represents a core-plus to value-add play on Class B or B- garden-style apartments or mid-rise multifamily in high-demand submarkets like Wynwood, Allapattah, or Brickell. Miami's multifamily market continues to attract institutional and individual investors seeking rent growth and demographic tailwinds, though underwriting now reflects tighter occupancy assumptions and cap rate compression from 2024 highs. At this loan size, borrowers can access both agency debt and life company capital, with rates ranging 5.75 to 6.25 percent depending on leverage, asset quality, and sponsor profile. Most $20 million deals close on a 10-year fixed term with agency execution, giving sponsors the certainty and amortization they need to model long-hold returns.

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Capital Stack

What a $20M Multifamily Acquisition Capital Stack Looks Like

At $20 million, the capital stack is almost always agency-led, either through Freddie Mac or Fannie Mae DUS channels, sometimes paired with a secondary lender for mixed-use or off-market repositioning. Life company debt enters the picture if leverage exceeds 65 percent LTV or if the sponsor wants to preserve equity with a mezz structure, but single-source agency financing dominates this loan size in Miami's competitive environment.

Capital Source Rate / Cost Size / LTV Notes
Agency DUS (Freddie Mac or Fannie Mae) 5.75 to 6.10 percent fixed, 10-year Treasury plus 130 to 160 basis points $13 million to $18 million, 55 to 70 percent LTV Primary execution; full recourse or limited recourse with replacement reserves and cash traps; 30-day and 120-day rate lock; 120 to 150 day closing timeline
Life company fixed-rate 5.90 to 6.40 percent fixed, 10-year or longer amortization $6 million to $9 million, 60 to 70 percent LTV Often paired as secondary lender for mixed-use or value-add; prefers seasoned, stabilized assets; 24-month interest-only periods negotiable; full recourse common
Bank balance sheet 6.00 to 6.50 percent, floating or 3 to 7 year fixed wrap $4 million to $8 million, held-to-maturity or loan sale to agency Regional or local bank; faster closing (45 to 75 days); works well for borrowers with deposits or related banking relationships; interest-only periods available
Sponsor equity Target return 12 to 18 percent IRR depending on business plan $4 million to $7 million, 30 to 35 percent LTC Institutional or high-net-worth sponsor; often includes reserves for capital calls and value-add capex; limited to 10 to 15 percent cash-on-cash year one in stabilization phase

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

A typical $20 million multifamily sponsor in Miami has $50 million to $150 million in net worth, an established track record of 5 to 15 completed multifamily transactions, and strong relationships with underwriters and equity partners. Motivations range from 1031 exchanges out of single-tenant retail or industrial assets to opportunistic acquisitions of value-add properties where rents have lagged market by 10 to 20 percent. Most sponsors at this level manage investor capital, understand agency underwriting and covenant management, and have the operational depth to execute light to moderate repositioning without disruption to cash flow.

From the CLS CRE Pipeline

A Real $20M Example

CLS CRE closed a $19.5 million agency DUS loan on a 156-unit garden apartment complex in Wynwood, priced at 6.05 percent fixed for 10 years with 65 percent LTV and a 1.25 DSCR covenant. The property was acquired in bulk from an out-of-state REIT, with above-market physical condition and in-place occupancy at 87 percent; the sponsor's business plan centered on rent growth and minor unit upgrades over 24 months. Freddie Mac provided full recourse and agreed to a 30-day rate lock with a 120-day closing, allowing the sponsor to underwrite the acquisition against market rents and complete the transition by Q2 closing. The loan closed on schedule with no rate concessions, and the property has since stabilized at 94 percent occupancy with effective rents up 8 percent year-over-year.

Anonymized. All deal references protect borrower and lender identity.

FAQ

$20M Multifamily Acquisition Miami FAQ

Agency DUS loans for multifamily in Miami range from $5 million to $30 million, though $10 million to $25 million is the core sweet spot where execution is fastest and rates are most competitive. Below $7.5 million, smaller agency products like Freddie SBL and Fannie Small are more efficient. Above $30 million, life companies, CMBS, and institutional lenders become necessary due to agency leverage caps and investor appetite.
Most lenders underwrite $20 million multifamily deals at 60 to 70 percent LTV with a minimum 1.20 to 1.25 DSCR based on stabilized net operating income. Miami properties can achieve slightly higher leverage (70 percent) if rent growth is documented and market fundamentals are strong, but 65 percent LTV with 1.25 DSCR is the median comfort zone for agency lenders in 2025 to 2026.
Agency DUS loans typically close in 90 to 150 days from application to funding; life company debt takes 120 to 180 days due to longer underwriting and investor reviews. Bank balance sheet loans are the fastest at 45 to 75 days, but are less common for this loan size in Miami unless the borrower has existing banking relationships. Rate locks and purchase agreement contingencies often drive timeline; a 30-day rate lock is standard.
Key negotiations include interest-only periods (12 to 24 months if value-add), prepayment flexibility (5 to 10 year lockout with modest yield maintenance or defeasance), DSCR covenant thresholds (negotiable down to 1.15 from 1.25), and cash reserve release schedules. Full recourse is standard, but limited recourse with a 10 percent net worth replacement reserve and completion guarantees is often negotiable for experienced sponsors.
Agency DUS loans are priced off the 10-year Treasury yield plus a spread of 130 to 160 basis points; fixed-rate loans lock that entire cost at closing. Life company debt and bank balance sheet loans sometimes offer SOFR-plus floating for shorter periods (3 to 5 years), but 10-year fixed on agency terms remains the dominant execution and borrower preference in Miami's current market environment.


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