$25M Multifamily Refinance Miami | Commercial Lending Solutions 

$25 Million Multifamily Refinance in Miami

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $25 million multifamily refinance in Miami represents a meaningful institutional trade in South Florida's competitive rental market, where rental growth and occupancy strength have created refinance windows for stabilized asset holders. At this loan size, borrowers access a mix of agency and life company capital, typically pricing between 5.65 to 5.85 percent on a 10-year fixed term. Miami's strong multifamily fundamentals, driven by continued migration and limited new supply in core submarkets, support conservative leverage structures and healthy debt service coverage ratios that appeal to permanent lenders. The Miami market has seen sustained pricing for well-positioned Class A and Class B properties, making refinances particularly attractive for borrowers looking to lock in rates and extend duration.

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What a $25M Multifamily Refinance Capital Stack Looks Like

At the $25 million mark, life companies and agency DUS lenders dominate execution, with life companies typically carrying 55 to 65 percent of the loan amount while sponsors retain meaningful equity. Lender selection depends on property quality, sponsor experience, and desired leverage: agency DUS programs offer tighter pricing and faster execution for strong sponsors, while life companies provide flexibility on recourse structure and interest-only periods. In Miami's market, sponsors often layer agency debt with an equity component or secondary financing when pursuing aggressive value-add plays, though straight refinances lean toward agency or single life company structures.

Capital Source Rate / Cost Size / LTV Notes
Agency DUS lender 5.65 to 5.95 percent fixed 10-year $17.5M to $25M at 60 to 65 percent LTV Full recourse, fastest closing timeline (45 to 60 days), tight underwriting on property condition and sponsor track record, no IO period standard
Life company 5.75 to 6.15 percent fixed 10-year $12.5M to $25M at 55 to 65 percent LTV Non-recourse or limited recourse option, longer underwriting window (60 to 90 days), flexible IO periods (1 to 3 years available), prefers established sponsors with 5+ asset holds
Regional bank balance sheet 5.55 to 5.95 percent fixed 5 to 7-year $15M to $25M at 60 to 70 percent LTV Faster decision, flexible recourse terms, shorter loan terms preferred, relationship-driven pricing, often used as bridge or short-hold tool
Sponsor equity and retained cash N/A $8.75M to $12.5M (35 to 40 percent equity) Required for agency execution, improves leverage flexibility, demonstrates sponsor confidence in market and property fundamentals

Pricing reflects active CLS CRE quote pipeline as of April 2026. Specific deal pricing depends on sponsor, property, and structure.

Who Closes a $25M Multifamily Refinance Deal

Typical sponsors at this loan size are experienced multifamily operators with $200 million to $1 billion-plus in AUM, holding a portfolio of 5 to 20 stabilized properties across multiple markets. They have completed multiple refinances and value-add acquisitions, with strong credit histories and track records of stable operations and timely debt service. Motivations for refinancing include extending maturities from loans originated in 2019 to 2021, capturing equity through rent growth, repositioning capital toward acquisition opportunities, or optimizing capital structures in the face of higher interest rate environments.

A Real $25M Example

A 280-unit Class B garden-style multifamily property in the Wynwood submarket of Miami was refinanced at $24.2 million with a life company lender at 5.72 percent fixed for 10 years, achieving 62 percent LTV and 1.48x DSCR. The property had stabilized at 96 percent occupancy with average rents of $1,850 per unit and strong year-over-year rent growth of 6 to 7 percent. The sponsor, a 12-property operator based in South Florida, structured the deal with a 2-year interest-only period to preserve cash flow for minor capital improvements and deferred maintenance. The loan closed in 72 days with non-recourse structure and achieved the sponsor's goal of extending maturity by 10 years and freeing $3.8 million in equity for a follow-on acquisition.

Anonymized. All deal references protect borrower and lender identity.

$25M Multifamily Refinance Miami FAQ

Agency DUS lenders typically max out at 60 to 65 percent LTV, while life companies may extend to 65 to 70 percent depending on sponsor experience and property quality. Most stabilized Miami multifamily refinances land in the 60 to 65 percent range to maintain healthy DSCR and appeal to permanent lenders. If you need higher leverage, secondary debt or retained equity is required.
Agency lenders typically close in 45 to 60 days with strong sponsor packages, while life companies average 60 to 90 days due to more extensive underwriting and credit committee review. Regional banks can move faster (30 to 45 days) if they know the sponsor or have prior relationship history. Miami-based lenders often have streamlined processes for local properties.
Agency lenders require full recourse as a standard term. Life companies may offer non-recourse or limited recourse options (typically recourse to cash flow above a threshold) depending on sponsor profile and property strength. Non-recourse pricing is typically 15 to 35 basis points higher than full recourse.
Lenders typically target 1.20x to 1.40x DSCR on permanent multifamily debt, with 1.25x being a common covenant floor. At current rates (5.65 to 5.95 percent), a $25M loan requires sufficient net operating income to support approximately $1.4M to $1.5M in annual debt service. Properties with DSCR below 1.20x may face higher rates, larger equity injections, or require IO periods to improve coverage.
Miami trades roughly in line with other Tier 1 Sunbelt metros (Dallas, Austin, Charlotte) given strong population growth and consistent rental demand. However, older stock or Class C assets may face modest rate premiums (10 to 25 basis points) versus Class A assets due to higher capex expectations. Market liquidity is strong, so sponsors often see tight pricing relative to national averages.


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