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

$25 Million Multifamily Refinance in New York

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $25 million multifamily refinance in New York represents a mid-market transaction that typically involves stabilized apartment buildings in prime Manhattan or outer-borough submarkets. At this loan size, borrowers refinance to capture rate improvements, extend maturities, or recycle equity following value-add repositioning. Leverage typically ranges from 60 to 70 percent LTV, with rates in the 5.70 to 5.95 percent range depending on asset quality, sponsor strength, and 10-year Treasury movement. New York's supply constraints and strong rent growth continue to support agency and life company appetite at this size.

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Capital Stack

What a $25M Multifamily Refinance Capital Stack Looks Like

At $25 million, the capital stack almost exclusively favors agency DUS execution (Freddie Mac or Fannie Mae) or life company balance sheet financing. Agency lenders dominate due to pricing efficiency and standardized underwriting, though some sponsors use life company debt for longer interest-only periods or looser financial covenants. Lender selection typically hinges on property location, sponsor profile, and whether the borrower values agency certainty or life company flexibility.

Capital Source Rate / Cost Size / LTV Notes
A large regional bank 5.70 to 5.90 percent $25M at 65 to 70 percent LTV Competitive on rate for strong sponsors with stabilized assets. Typically requires full recourse and strong liquidity reserve. 10-year term with 1 to 2 year interest-only period common.
An agency DUS lender 5.75 to 5.95 percent $25M at 65 to 70 percent LTV Market standard execution for New York multifamily. Seasoned property and 2+ year operating history required. Fannie Mae DUS or Freddie Mac DUS preferred; recourse typically limited to 10 years.
A life company 5.85 to 6.10 percent $20M to $25M at 55 to 65 percent LTV Preferred for sponsors seeking 7 to 10 year interest-only periods or broader financial flexibility. Longer closing timelines and more intensive underwriting. Non-recourse or limited recourse structures available.
A credit union or smaller commercial lender 5.95 to 6.25 percent $15M to $25M at 60 to 70 percent LTV Alternative for sponsors with relationship banking or unique property profiles. Faster closing possible. Often requires personal guarantees and stricter DSCR covenants (1.25x minimum).

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 closing $25 million multifamily refinances in New York are experienced operators with net worth exceeding $10 million and a track record of 5 to 10 prior transactions. They may own the asset outright, hold it via prior agency financing, or recently stabilized a value-add project. Primary motivations include rate refinancing, extending a maturing loan, or deploying proceeds into additional acquisitions across the New York market.

From the CLS CRE Pipeline

A Real $25M Example

CLS CRE closed a $25.2 million permanent refinance on a 185-unit elevator building in Brooklyn during Q3 2024. The property was acquired 4 years prior, underwent unit renovation and amenity upgrades, and achieved 94 percent occupancy with strong rent growth. An agency DUS lender provided execution at 5.78 percent, 70 percent LTV, 30-year amortization with 2 years interest-only. The 1.32x DSCR debt service coverage ratio and strong sponsor track record drove competitive pricing. Closing timeline was 45 days from complete application.

Anonymized. All deal references protect borrower and lender identity.

FAQ

$25M Multifamily Refinance New York FAQ

Most agency and bank lenders require a DSCR covenant floor of 1.20x to 1.25x, measured annually after the interest-only period expires. Life companies sometimes accept 1.15x or lower depending on sponsor credit quality. If current DSCR falls below covenant, lenders typically allow 6 to 12 months to cure before acceleration.
Agency DUS transactions typically close in 45 to 60 days from complete application submission. Life company deals often require 60 to 90 days due to more intensive underwriting and committee approval. Bank refinances can close in 30 to 45 days if the sponsor has strong banking relationships and clean financials.
Pricing is typically within 5 to 15 basis points of each other and highly dependent on rate environment and property submarket. Both agencies serve New York multifamily equally well. Your mortgage broker should run parallel quotes to capture the best execution on the day of pricing.
Most lenders require 6 to 12 months of PITI (principal, interest, taxes, insurance) held in a controlled account, though this requirement varies by lender and sponsor net worth. Some life companies waive reserves entirely for net-worth-strong sponsors. Bank lenders tend to be more stringent, especially if personal guarantees are involved.
No. Both Freddie Mac DUS and Fannie Mae DUS require a minimum of 24 months of property operating history and trailing 12-month financials prior to application submission. If the property is newer or recently repositioned, a bank or life company may be the only viable path, typically at a higher rate.


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