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

$25 Million Multifamily Refinance in Phoenix

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $25 million multifamily refinance in Phoenix represents the sweet spot where institutional capital meets portfolio lender flexibility. Phoenix's multifamily market has tightened rents and occupancy over the past 18 months, creating refinance urgency for sponsors who executed value-add plays in 2021 and 2022. At this loan size and in this market, you're competing for agency execution primarily, with life company debt becoming viable for borrowers with institutional track records and strong properties. Rates are tracking 5.50 to 5.75 percent on 10-year fixed terms, making refinance math work for stabilized assets with 5.0 to 5.5 percent debt service coverage ratios.

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Capital Stack

What a $25M Multifamily Refinance Capital Stack Looks Like

Life company lenders and agency DUS platforms dominate the $25 million space in Phoenix, with life company execution taking the lead when LTV sits 55 to 65 percent and sponsor equity checks out. Agency DUS remains competitive for lower-leverage deals or those with strong sponsor pedigree, while a regional or super-regional bank balance sheet can serve as a secondary option if loan structure favors portfolio hold.

Capital Source Rate / Cost Size / LTV Notes
Life company 5.50 to 5.85 percent fixed $25M / 55 to 65 percent LTV Institutional multifamily focus; 10-year fixed; full recourse to sponsor; 90-day close timeline; no IO period typical; DSCR covenant floor 1.20x
Agency DUS platform 5.65 to 5.95 percent fixed $25M / 50 to 60 percent LTV Freddie or Fannie standard DUS; 10-year fixed or 7-year fixed available; limited recourse; 75 to 90-day close; full amortization; DSCR requirement 1.25x minimum
Regional bank balance sheet 5.85 to 6.10 percent plus 50 to 75 bps margin $25M / 50 to 60 percent LTV Portfolio hold intent; flexible IO period 2 to 5 years; full recourse; 60-day close if expedited; DSCR covenant 1.15x floor; deposit relationship valued
Credit union or alternative lender 6.00 to 6.25 percent plus adjustable margin $15M to $25M / 45 to 55 percent LTV Niche execution for sponsors with existing relationships; shorter term 5 to 7 years common; IO period negotiable; full recourse; rapid close 45 to 60 days

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 multifamily refinance borrower in Phoenix is a mid-market operator with $150 million to $400 million in portfolio AUM, 8 to 15 years of operating history, and successful value-add or core-plus execution in Sunbelt markets. Sponsors are motivated by rate refinancing (locking in 5.50 to 5.75 percent before further rate moves), cash-out financing (10 to 20 percent equity release for new acquisitions or capital returns), or property repositioning (interior upgrades, lease-up acceleration, tenant mix optimization). Liquidity events or portfolio rebalancing often drive the timing, particularly as sponsors recycle 2020 to 2022 vintage purchases.

From the CLS CRE Pipeline

A Real $25M Example

A stabilized 340-unit garden-style multifamily property in the Ahwatukee submarket refinanced at $24.8 million against $1,950 gross rent per unit. The sponsor, an experienced Western US operator, brought 30 percent equity and sought rate relief on a 2021 bridge that had reset at 6.75 percent. A life company executed a 10-year fixed at 5.62 percent with 1.22x DSCR, 60 percent LTV, and full recourse to the sponsor and GP. The transaction closed in 85 days with no IO period, generating 180 basis points of annual debt service savings and positioning the sponsor to fund a second Phoenix acquisition in Q4.

Anonymized. All deal references protect borrower and lender identity.

FAQ

$25M Multifamily Refinance Phoenix FAQ

Agency DUS platforms require minimum 1.25x DSCR, life companies typically 1.20 to 1.25x, and balance sheet lenders as low as 1.15x. Phoenix market compression has tightened these floors by 0.05 to 0.10x versus 2023, so underwriting rents conservatively and stress-testing for occupancy dips below 92 percent is essential.
Yes, with a 21 to 30-day rate lock standard across life companies and agency platforms. Some lenders extend to 45 days if you're in active underwriting and appraisal is ordered; exceeding that typically triggers a re-quote or one-time rate adjustment based on market move.
Full recourse to the sponsor and all guarantors is the market standard for life company execution at this size. Some lenders carve out liability after 10 years or upon achievement of a 1.35x DSCR threshold, but negotiate this as a secondary item after rate and term are locked.
Life companies and agency platforms typically close in 70 to 90 days from application to funding, assuming appraisal, title, and sponsor financials are submitted early. Bank balance sheet loans can accelerate to 45 to 60 days if you have an existing relationship and clean property profile.
10-year fixed is the consensus choice in 2026, given rate uncertainty and the ability to lock 5.50 to 5.75 percent longer term. 7-year fixed saves 10 to 20 basis points but exposes you to refinance risk in 2033 when rates may be materially higher; only pursue if you plan an exit or major capital event by year 5.


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