$25M Multifamily Acquisition Miami | Commercial Lending Solutions 
Loan Size Example

$25 Million Multifamily Acquisition in Miami

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $25 million multifamily acquisition in Miami represents the upper-middle market for permanent residential financing in South Florida, typically targeting stabilized garden-style or mid-rise apartments across core submarkets like Wynwood, Brickell, or Edgewater. At this loan size, borrowers access the full spectrum of institutional capital: agency platforms (Freddie Mac and Fannie Mae DUS programs), life company balance sheets, and selective bank portfolios. Rates in this band currently track 5.75 to 5.95 percent on a 10-year fixed or 7-year fixed structure, depending on leverage, sponsor profile, and property fundamentals. Miami's strong rental demand and institutional-grade investor base make this a competitive execution window for experienced sponsors.

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Capital Stack

What a $25M Multifamily Acquisition Capital Stack Looks Like

Life companies and agency DUS lenders dominate the $25 million multifamily market in Miami, each with distinct advantages. Agency execution typically wins on pricing and certainty, while life companies offer greater flexibility on leverage, recourse structure, and non-standard asset profiles. Most sponsors in this band pursue a 55 to 70 percent loan-to-value approach, balancing cost of debt against equity returns and refinance runway.

Capital Source Rate / Cost Size / LTV Notes
Agency (Freddie Mac or Fannie Mae DUS) 5.75 to 5.95 percent fixed, 10-year or 7-year amortization $25M at 60 to 65 percent LTV Full recourse, 30-day rate lock, seller delivery within 90 days. Underwriting favors 1.25 DSCR minimum and seasoned sponsors. Pricing reflects benchmark Treasury plus 185 to 215 basis points.
Life company balance sheet 5.85 to 6.10 percent fixed, 10-year or 12-year amortization $25M at 65 to 70 percent LTV Carve-out recourse (often on sponsor net worth over $10M), 60-day rate lock standard. Allows interest-only for 2 to 3 years on value-add deals. Slower closing timeline (120 to 150 days) but greater loan flexibility.
Regional bank balance sheet 5.90 to 6.20 percent fixed, 7-year amortization $15M to $25M at 55 to 62 percent LTV Full or carve-out recourse, relationship-based pricing. Typically funds only for established borrowers in bank's territory. Faster closing than life companies (75 to 90 days).
Debt fund or credit tenant-adjacent lender 6.25 to 6.75 percent plus 1 to 1.5 percent origination $10M to $25M at 70 to 75 percent LTV Non-recourse or minimal recourse structure. Most relevant for sponsors with strong equity (25 to 30 percent down) seeking maximum leverage. Longer underwriting timeline and tighter covenants.

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 $25M Multifamily Acquisition Deal

Typical sponsors closing $25 million multifamily acquisitions in Miami are established regional or national operators with $50 million to $500 million in assets under management, a track record of 5 to 15 prior transactions, and either a development pipeline or value-add repositioning strategy. Net worth typically exceeds $25 million, and sponsors often carry prior agency debt relationships that facilitate pricing and execution. Motivations range from market-driven acquisitions (capturing Miami's rental growth) to tactical refinances of stabilized assets and opportunistic value-add plays in neighborhoods experiencing demographic or infrastructure-led appreciation.

From the CLS CRE Pipeline

A Real $25M Example

CLS closed a $25 million DUS acquisition loan in Wynwood for a 280-unit garden-style apartment community in 2024. The borrower, a regional multifamily operator with strong institutional backing, targeted a 64 percent LTV structure and 1.35 DSCR at stabilization. We executed with an agency lender at 5.82 percent fixed for 10 years, full recourse to the sponsor, and a 90-day closing timeline. The sponsor used the capital to acquire and reposition the property with cosmetic upgrades and rental rate optimization, ultimately refinancing into a lower-rate permanent loan 18 months later as property performance exceeded pro forma.

Anonymized. All deal references protect borrower and lender identity.

FAQ

$25M Multifamily Acquisition Miami FAQ

LTV typically ranges from 55 to 70 percent depending on lender type and property profile. Agency lenders generally max out at 65 percent, while life companies will go to 70 percent for strong sponsors and stabilized properties. Borrowers with significant equity (30+ percent down) often target 65 to 70 percent LTV to optimize the cost of debt and preserve balance-sheet flexibility.
Agency is the default choice if your property is stabilized, your DSCR is 1.25 or higher, and your sponsor profile fits their box (recourse capacity, net worth, prior agency experience). Life company wins if you need higher leverage (70%+), plan a value-add hold with interest-only years, or have a non-standard asset. Life company also works if you prefer lower recourse burden (carve-out vs. full recourse).
Agency DUS typically closes in 90 to 120 days from application to funding. Life company financing typically runs 120 to 150 days due to longer underwriting and committee approval cycles. Bank financing falls in the middle at 75 to 100 days. Expedited closing is possible if the file is clean and the sponsor is familiar with lender requirements.
Agency lenders require full recourse to the sponsor and typically require a recourse note equal to the full loan amount. Life companies offer carve-out recourse (recourse limited to 25 to 50 percent of the loan balance), which is more sponsor-friendly. Bank lenders vary, but many offer carve-out recourse if the sponsor meets relationship and net-worth thresholds.
Agency DUS loans do not typically include interest-only periods for stabilized acquisitions; full amortization begins at closing. Life company loans often include 2 to 3 years of interest-only for value-add properties, allowing sponsors to minimize cash flow impact during renovation and lease-up. Interest-only adds 0.10 to 0.25 percent to the rate and requires strong justification tied to the business plan.


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