By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions
A $5 million multifamily refinance in Los Angeles is one of the most common deal sizes in the LA capital markets. Most $5M LA multifamily refis fund through Freddie Mac Optigo SBL or Fannie Mae DUS Small Loans at 65 to 75 percent LTV with a 10-year fixed-rate non-recourse execution. Below the SBL minimum ($1M to $7.5M for Freddie SBL and $1M to $9M for Fannie Small), the loan competes with bank balance sheet, life co relationship lenders, and the limited bench of CMBS conduits that play down to $5M.
Get a Quote on Your $5M Deal →Most $5M Los Angeles multifamily refinances fund as a single senior loan from an agency Seller-Servicer at 65 to 75 percent LTV. Mezz and preferred equity are typically not part of the stack at this size. The decision is which agency and which Seller-Servicer.
Pricing reflects active CLS CRE quote pipeline as of April 2026. Specific deal pricing depends on sponsor, property, and structure.
Typical $5M LA multifamily refinance sponsors are private capital owners with 1 to 10 LA-area multifamily properties. Sponsor net worth typically $3M to $15M; liquidity $500K to $3M. The deal often replaces a maturing bank loan or an older agency loan with a fresh 10-year fixed at lower coupon and modest cash-out (typically 5 to 15 percent of property value). LA-specific compliance items including AB 1482 rent caps, RSO compliance, soft story retrofit, SB 326 / SB 721 balcony inspections, and Measure ULA transfer tax are addressed in the agency Seller-Servicer's standard underwriting package.
On a 24-unit Class B 1960s vintage stabilized multifamily in West LA, the sponsor refinanced an expiring 5-year bank loan at 6.95 percent into Freddie Mac Optigo SBL at 5.78 percent fixed 10-year, 72 percent LTV, $5.2M loan amount, with 1 year of interest-only and standard yield maintenance. The new coupon saved approximately $61,000 per year of interest expense and locked in cost of capital through 2036. Soft story retrofit was complete and AB 1482 compliance was confirmed in the SBL underwriting.
Anonymized. All deal references protect borrower and lender identity.
Tell us about your transaction. We will run it past lenders that actively fund this size and product type and send back terms within 48 hours.
Apply for Financing →