$3 Million Multifamily Refinance in Dallas
By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions
A $3 million multifamily refinance in Dallas represents the sweet spot for small-balance agency execution, where borrowers capture rate and term certainty without the complexity of larger portfolio deals. Dallas's steady population growth and affordable housing profile make these refinances attractive to regional and national agency lenders seeking stable cash flow. At this loan size, borrowers typically achieve leverage in the 70 to 75 percent LTV range with current rates around 5.90 percent on a 10-year fixed term. The Dallas multifamily market continues to draw capital because rental growth and occupancy have remained resilient relative to other coastal markets.
Get a Quote on Your $3M Deal →What a $3M Multifamily Refinance Capital Stack Looks Like
At $3 million, the capital stack is almost always dominated by Freddie Mac Small Balance or Fannie Mae DUS Small programs, which have become the preferred execution path for Dallas apartment owners looking to refinance 10 to 20 unit properties or small complexes in secondary submarkets. These agencies compete aggressively on rate and terms at this size, which keeps execution costs down and timelines predictable for borrowers with stabilized assets and moderate leverage.
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
The typical sponsor refinancing a $3 million Dallas apartment asset is an experienced local or regional operator with $10 to $50 million in portfolio assets and at least three to five closed multifamily deals in the last five years. These borrowers often own and manage properties themselves, have stabilized occupancy above 90 percent, and are refinancing to capture lower rates than their existing debt, pull out some equity for acquisition or value-add capital, or extend maturity risk. Many are second or third generation family operators or small independent partnerships that prize local market knowledge and hands-on asset management.
A Real $3M Example
A 22-unit class B apartment complex in the Farmers Branch submarket closed with a regional agency lender at $2.85 million, 72 percent LTV, and 5.88 percent on a 10-year fixed term. The borrower had owned the property for six years, achieved stable 94 percent occupancy, and wanted to lock in long-term financing while rates remained in the 5.75 to 6.15 percent range. Closing took 38 days from application to funding because the appraisal supported value, debt service coverage ratio was clean at 1.35x, and the borrower carried full recourse. The sponsor used the modest rate savings to fund a unit renovation program and establish a capital reserve for future upgrades.
Anonymized. All deal references protect borrower and lender identity.
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