$20 Million Multifamily Acquisition in Seattle
By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions
A $20M multifamily acquisition in Seattle represents mid-market institutional appetite in a Pacific Northwest gateway known for strong rent growth, tech-driven demand, and limited supply. At this loan size, borrowers typically target class B or class C assets in established neighborhoods like Capitol Hill, Ballard, or the University District, where value-add strategies and operational improvements drive returns. Lenders are pricing aggressively at 5.85 percent, anchored to the 10-year Treasury, reflecting Seattle's stable sponsor base and predictable cash flows. This is the sweet spot where agency execution (Freddie Mac DUS and Fannie Mae DUS) competes directly with life company balance sheet programs, giving borrowers genuine optionality on structure, recourse, and prepayment terms.
Get a Quote on Your $20M Deal →What a $20M Multifamily Acquisition Capital Stack Looks Like
At $20M, the capital stack is dominated by agency lenders and life companies, with agency DUS programs (both Freddie and Fannie) taking the lion's share due to execution speed, 30-year amortization, and fixed-rate certainty. Life company lenders remain competitive for borrowers comfortable with full recourse and seeking higher leverage (55 to 65 percent LTV), particularly when the sponsor has a track record of 10-plus deals and strong liquidity. Equity sponsors typically contribute 30 to 40 percent, with debt representing 60 to 70 percent LTV, leaving room for value-add rehab reserves and contingency.
Pricing reflects active CLS CRE quote pipeline as of April 2026. Specific deal pricing depends on sponsor, property, and structure.
Who Closes a $20M Multifamily Acquisition Deal
The typical sponsor closing a $20M multifamily deal in Seattle is an established operator with net worth above $2M, a portfolio of at least 5 to 10 prior transactions, and a depth of experience in Pacific Northwest markets. These are owner-operators or small family offices comfortable with full recourse and confident in their underwriting of value-add projects or stabilized holds. Motivations range from portfolio expansion into Seattle's supply-constrained neighborhoods, to refinance plays on existing assets, to opportunistic acquisitions of mismanaged or under-rented buildings where operational or capital improvements can unlock 5 to 7 percent IRR uplift.
A Real $20M Example
CLS CRE closed a $20.2M acquisition loan on a 94-unit multifamily property in a secondary Seattle neighborhood, financed through a regional life company at 5.89 percent fixed for 10 years with 30-year amortization. The property was an older class B asset with average rents trailing market by 12 to 15 percent; the sponsor's business plan centered on unit renovations, common area updates, and aggressive leasing. LTV came in at 68 percent, DSCR at 1.32x on stabilized underwriting, with the sponsor contributing $6.5M in equity and reserving $800K for capex. The loan closed in 52 days with full recourse and a standard lockout prepayment clause for seven years, after which defeasance was permitted; the property stabilized within 18 months and was held for a third party refinance at lower rates.
Anonymized. All deal references protect borrower and lender identity.
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