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

$25 Million Multifamily Refinance in Los Angeles

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $25 million multifamily refinance in Los Angeles represents a significant stabilized asset play, typically targeting well-maintained apartment buildings in core submarkets like West LA, Mid-City, or the San Fernando Valley. At this loan size, borrowers access institutional capital sources and benefit from agency pricing, with rates clustering around 5.60 percent in the current market. These refinances are primarily driven by owners seeking to pull equity, extend maturity, or capture better pricing after 3 to 5 years of value-add operations. Los Angeles multifamily fundamentals remain resilient, supporting strong DSCR profiles and competitive leverage across the capital stack.

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Capital Stack

What a $25M Multifamily Refinance Capital Stack Looks Like

A $25 million refinance sits at the inflection point where agency DUS and life company execution become equally viable. The decision typically hinges on sponsor balance sheet strength, property performance, and desired loan structure. Most borrowers at this size pursue a split between a primary agency or life company tranche and a supplemental equity position, though full-leverage single-source solutions remain common.

Capital Source Rate / Cost Size / LTV Notes
Large regional or national bank (balance sheet) 5.50 to 5.75 percent, typically matching 10-year Treasury plus 225 to 250 basis points $25M full loan / 65 to 70 percent LTV Full recourse or limited recourse depending on sponsor strength. 10-year amortization typical. 1 to 2 year closing timeline. Strong preference for documented operating history and seasoned sponsors.
Agency DUS (Freddie/Fannie) 5.55 to 5.85 percent, agency pool pricing plus 45 to 70 basis points $25M full loan / 70 to 75 percent LTV Non-recourse structure available. 10-year amortization, 30-year term typical. 60 to 90 day closing. Prepayment penalties range from 5 to 0 percent declining. Strong market execution for seasoned, stabilized assets.
Life company 5.65 to 6.05 percent, fixed rate to maturity $12M to $18M / 55 to 65 percent LTV Typically paired with equity or mezzanine. Full recourse expected. 12 to 15 year fixed term with no prepayment penalty. Longer underwriting and closing (120 to 180 days). Targets sponsors with institutional track record.
Multifamily-focused debt fund 6.25 to 7.00 percent (higher rate reflects senior leverage and shorter hold) $5M to $8M supplemental / Bridge execution at 85 to 90 percent total LTV Non-recourse options available. Shorter 3 to 5 year terms with yield focus. Used to bridge gap between agency cap and sponsor equity. Faster execution (30 to 60 days). Common for opportunistic or lightly underwritten scenarios.

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

Typical sponsors at the $25 million refinance level bring $50 million to $150 million in net worth, active multifamily portfolio management, and a track record of 5 to 15 closings. These are often experienced operators or family offices seeking refinance activity to recover equity, reposition debt maturity, or fund follow-on acquisitions. Motivation varies from simple rate optimization to capital recycling after successful leasing and NOI growth, with many sponsors balancing acquisitions, refinances, and selective dispositions across multiple Los Angeles submarkets.

From the CLS CRE Pipeline

A Real $25M Example

A 165-unit apartment community in the Mid-City submarket was refinanced at $22.5 million after the sponsor completed a two-year value-add program focused on unit renovations and amenity upgrades. The primary agency DUS execution closed at 5.58 percent, 72 percent LTV, with a 10-year amortization and 30-year maturity, generating 1.38x DSCR in year one. A supplemental mezzanine tranche of $3 million from a regional debt fund rounded out the capital stack, allowing the sponsor to pull $4.2 million in equity while maintaining covenant coverage and avoiding recourse beyond the primary tranche. Closing occurred in 72 days with no rate lock extensions, reflecting strong property metrics and sponsor reputation.

Anonymized. All deal references protect borrower and lender identity.

FAQ

$25M Multifamily Refinance Los Angeles FAQ

Agency DUS lenders typically require 1.20x to 1.30x DSCR floors with monthly or annual testing. Life companies are often more flexible, targeting 1.15x to 1.25x depending on loan-to-value and sponsor strength. Bank balance sheet loans may negotiate custom covenants in the 1.10x to 1.25x range. Higher LTV increases covenant tightness.
Agency DUS caps out around 75 percent LTV for stabilized assets with strong sponsorship and NOI history. Banks will go to 70 percent LTV on balance sheet execution. Life companies typically max at 65 percent. Supplemental debt funds can lift total leverage to 85 to 90 percent, but at higher cost and shorter terms.
Life companies offer certainty of rate (no agency pool risk), longer fixed terms (12 to 15 years), and sometimes higher leverage appetite for marquee properties. Agency execution is faster and cheaper, but life company recourse-light and fixed-rate structure appeals to sponsors with liability concerns or those seeking absolute payment certainty.
Agency DUS executions typically close in 60 to 90 days from full application. Bank balance sheet loans range from 45 to 75 days depending on documentation and credit depth. Life company underwriting extends to 120 to 180 days due to longer hold periods and appetite committee processes. Supplemental debt funds move in 30 to 60 days.
Most sponsors lock immediately upon term sheet to protect economics and simplify capital planning. Rate lock costs typically run 0.25 to 0.50 percent depending on lender type and lock duration. Agency DUS offers builder locks at par. Floating is rarely offered on permanent refinances; it is primarily a bridge or construction product feature.


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