$5 Million Multifamily Acquisition in Manhattan

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $5 million multifamily acquisition in Manhattan is at the boundary between Freddie Mac Optigo SBL ($1M to $7.5M cap) and Fannie Mae DUS Small ($1M to $9M cap). Manhattan multifamily at this size is typically a 6 to 12 unit walk-up or small elevator building in lower-tier Manhattan submarkets, occasionally with rent stabilization. Most $5M Manhattan acquisitions fund through agency SBL/Small at 70 to 75 percent LTV.

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What a $5M Multifamily Acquisition Capital Stack Looks Like

$5M Manhattan multifamily acquisitions fund as a single agency loan. The decision is Freddie SBL versus Fannie Small, with both highly competitive at this size.

Capital Source Rate / Cost Size / LTV Notes
Freddie Mac Optigo SBL 5.65 to 6.05% $5M / 70 to 75% LTV Streamlined SBL
Fannie Mae DUS Small 5.75 to 6.10% $5M / 75 to 80% LTV Slightly higher leverage
NY-area specialty bank 6.85 to 7.85% $5M / 65 to 70% LTV Some specialty NYC banks compete on price
Local NY-area bank 6.95 to 8.00% $5M / 65 to 70% LTV Recourse typical

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

Who Closes a $5M Multifamily Acquisition Deal

Typical $5M Manhattan multifamily acquisition sponsors are NYC-focused private capital owners with 1 to 5 properties or first-time NYC investors with strong sponsor profiles. Sponsor net worth $3M to $15M. Manhattan-specific underwriting items include rent stabilization status, Local Law 97 carbon caps, Local Law 11 facade compliance, and 421-a / 485-x abatement timing.

A Real $5M Example

On a 9-unit walk-up multifamily in Lower Manhattan with 80 percent rent-stabilized units and 20 percent free-market mix, the buyer was a NYC-area sponsor with 4 properties. Freddie Mac Optigo SBL at 5.78 percent fixed 10-year, 72 percent LTV, $4.9M loan amount. The deal closed in 35 days from application.

Anonymized. All deal references protect borrower and lender identity.

$5M Multifamily Acquisition Manhattan FAQ

Yes. Freddie SBL widely finances Manhattan walk-up multifamily including rent-stabilized properties.
Lender underwriting accounts for stabilization with standardized treatment. Stabilized rents support cash flow durability but constrain rent growth.
Freddie SBL: 30 to 45 days. Fannie Small: 35 to 50 days.

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