$3 Million Multifamily Refinance in Brooklyn

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $3 million multifamily refinance in Brooklyn is firmly in the Freddie Mac Optigo SBL and Fannie Mae DUS Small sweet spot. SBL programs are streamlined, close in 30 to 45 days, and price competitively against bank balance sheet alternatives. Most $3M Brooklyn multifamily refis fund as Freddie SBL or DUS Small at 65 to 75 percent LTV with 10-year fixed-rate non-recourse execution.

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What a $3M Multifamily Refinance Capital Stack Looks Like

$3M Brooklyn multifamily refis fund as a single agency loan. The decision is typically Freddie SBL versus Fannie Small Loans, with both running both quotes the standard practice.

Capital Source Rate / Cost Size / LTV Notes
Freddie Mac Optigo SBL 5.65 to 6.05% (10-year fixed) $3M / 70 to 75% LTV Streamlined SBL, fast 30 to 45 day close
Fannie Mae DUS Small 5.75 to 6.10% (10-year fixed) $3M / 75 to 80% LTV Slightly higher leverage on some deals
Bank balance sheet 6.95 to 7.95% (5 to 7 year fixed) $3M / 65 to 70% LTV Recourse typical; depository relationship
Local NY-area bank 6.85 to 7.85% $3M / 65 to 75% LTV Some local banks have specialty Brooklyn appetite

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

Who Closes a $3M Multifamily Refinance Deal

Typical $3M Brooklyn multifamily refinance sponsors are NYC-area private capital owners with 1 to 5 multifamily properties. Sponsor net worth $1.5M to $8M; liquidity $250K to $1.5M. The deal typically replaces a maturing bank loan or older agency loan. Brooklyn-specific underwriting items include rent stabilization status, recent DHCR registrations, Local Law 97 carbon compliance pathway, Local Law 11 facade cycle, and 421-a or 485-x tax abatement timing.

A Real $3M Example

On a 9-unit walk-up rent-stabilized multifamily in Bushwick with 100 percent stabilized units, the sponsor refinanced an expiring bank balance sheet 7-year loan at 7.65 percent into Freddie Mac Optigo SBL at 5.78 percent fixed 10-year, 72 percent LTV, $3.1M loan amount. The new coupon saved approximately $58K per year of interest. DHCR registrations were current; Local Law 11 cycle 9 facade work was complete. The deal closed in 38 days from application.

Anonymized. All deal references protect borrower and lender identity.

$3M Multifamily Refinance Brooklyn FAQ

Yes. Freddie Mac Optigo SBL targets the $1M to $7.5M loan size. $3M Brooklyn multifamily is squarely in the sweet spot.
No. Freddie Mac actively finances rent-stabilized Brooklyn multifamily under SBL with standardized treatment of regulated rent rolls.
Freddie SBL closes in 30 to 45 days. Fannie Small in 35 to 50 days. Bank refinances run 45 to 75 days.
Yes, modestly. Agency programs allow cash-out refinance at 70 to 75 percent LTV typical for SBL. Higher cash-out requires bridge debt.

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