$25M Multifamily Refinance Dallas | Commercial Lending Solutions 
Loan Size Example

$25 Million Multifamily Refinance in Dallas

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $25 million multifamily refinance in Dallas represents the institutional sweet spot where borrowers can access agency balance sheet programs, life company warehouses, and regional bank portfolios with meaningful flexibility on structure and terms. Dallas multifamily has remained resilient through the interest rate cycle, with strong rent growth and sustained investor demand keeping leverage in the 55 to 70 percent LTV range depending on property class and submarket. At the current 10-year Treasury yield environment, a $25 million permanent loan carries an indicative rate near 5.55 percent, positioning many recent acquisitions and stabilized value-add plays favorably for refi execution. Borrowers in this size band typically have accumulated significant equity and are refinancing either to pull out capital, extend duration, or reduce carry on floating rate bridge debt.

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Capital Stack

What a $25M Multifamily Refinance Capital Stack Looks Like

The $25 million Dallas multifamily refinance market is dominated by agency DUS programs and regional life company balance sheets, both of which compete actively on rate, leverage, and structural flexibility. Life companies typically win business by offering higher LTV capacity (55 to 65 percent) and longer amortization, while agencies (Fannie Mae and Freddie Mac) provide tighter pricing and agency credit benefits; the choice depends on the borrower's liquidity needs, sponsor track record, and property underwriting.

Capital Source Rate / Cost Size / LTV Notes
Agency DUS (Fannie Mae or Freddie Mac) 5.50 to 5.70 percent on 10-year fixed $25M at 60 to 65 percent LTV Loan committee approval in 30 to 45 days; full recourse or limited recourse with strong balance sheet; standard 30-year amortization; preferred execution for established sponsors with multiple properties
Life company balance sheet 5.65 to 5.95 percent on 10-year fixed $25M at 55 to 65 percent LTV Non-agency program; higher LTV tolerance; longer amortization to 35 years available; 60 to 90 day close; recourse negotiable; strong appetite for Dallas multifamily fundamentals
Regional bank balance sheet 5.45 to 5.75 percent plus potential SBA or portfolio benefit $25M at 65 to 70 percent LTV Local market knowledge and relationship pricing; floating rate options with 3 to 5 year fixed periods; faster execution if borrower has existing deposit or credit relationship; portfolio hold reduces some compliance burden
Debt fund or alternative balance sheet 5.75 to 6.25 percent on 10-year fixed $25M at 60 to 70 percent LTV Non-bank lender; flexible on sponsor seasoning and recent value-add timelines; higher underwriting and legal fees; faster decision if borrower is not agency-eligible or seeking maximum leverage

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 Refinance Deal

The typical $25 million Dallas multifamily refinancer is a mid-market sponsor with $100 million to $500 million in AUM, three to eight institutional properties in their portfolio, and a track record of successfully executing value-add business plans or operating stabilized assets through multiple market cycles. These sponsors are frequently refinancing out of floating rate bridge debt accumulated during 2022 to 2023 acquisitions, seeking to lock in permanent financing before further rate increases, or pulling equity from appreciated assets to recycle into new purchases or fund development pipelines. Net worth typically exceeds $25 million to $50 million, and lenders expect full recourse personal guarantees or will require additional credit support from institutional co-sponsors.

From the CLS CRE Pipeline

A Real $25M Example

CLS closed a $24.8 million permanent loan on a 312-unit Class B garden complex in the Far North Dallas submarket that had been acquired 18 months prior with a floating rate bridge facility at 450 basis points over SOFR. The borrower, a regional operator with eight properties and a 15-year track record, had executed a targeted interior renovation program and achieved 94 percent occupancy with rents up 12 percent since takedown. A life company balance sheet provided the capital at 5.62 percent fixed for 10 years with 35-year amortization and a 55 percent LTV, allowing the borrower to pull $6.2 million in equity for a co-investment in a new ground-up development deal in Austin. The loan carried full recourse, a 1.25x DSCR covenant, and closed in 68 days with no conditions on the appraisal or property inspection.

Anonymized. All deal references protect borrower and lender identity.

FAQ

$25M Multifamily Refinance Dallas FAQ

Agency programs typically max out at 60 to 65 percent LTV for stabilized properties, while life companies will go 55 to 65 percent and regional banks may push to 65 to 70 percent if the sponsor and property metrics support it. The driving factors are DSCR (lenders expect minimum 1.20x to 1.25x), asset quality, sponsor experience, and local market rent growth outlook. Dallas properties have been holding strong DSCR, so a well-underwritten property can support higher leverage than markets with softer fundamentals.
Agency DUS programs typically require 35 to 50 days from application to closing due to loan committee review, credit approval, and mandatory appraisal/environmental review. Life company balance sheet loans can close in 50 to 90 days depending on sponsor complexity and documentation readiness. Regional banks may move faster if the borrower has an existing relationship, sometimes closing in 45 to 65 days.
In the current environment, most borrowers lock in fixed rates for permanent loans at or below 5.75 percent and view it as a hedge against further rate volatility over the 10-year hold. If the borrower expects to dispose of or refi the asset within 3 to 5 years, a floating rate or shorter rate lock (3 to 5 years) can reduce all-in costs by 25 to 50 basis points. The decision hinges on the sponsor's risk tolerance, capital plan, and market exit assumptions.
Agency loans typically include a standard prepayment penalty structure (1% in year one to three, then declining) and a mandatory hold period of 12 to 18 months. Life company and bank loans often offer more flexibility: some will allow 1.0 to 1.25 percent yield maintenance or a fixed penalty of 1 percent flat. Debt funds may require no prepay for the first 24 months, then open with a 1 percent fee; always negotiate this upfront as exit strategy clarity is critical.
Based on 10-year Treasury levels, you should expect agency fixed rates in the 5.50 to 5.70 percent range and life company offerings at 5.65 to 5.95 percent, depending on LTV, sponsor strength, and property class. Regional banks and alternative lenders can price more aggressively if the borrower qualifies for relationship or portfolio benefits, sometimes reaching 5.45 to 5.75 percent. All-in pricing will shift with Treasury volatility and spreads, so lenders should lock a rate sheet weekly if actively marketing properties.


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