$5M Multifamily Refinance New York | Commercial Lending Solutions 
Loan Size Example

$5 Million Multifamily Refinance in New York

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $5 million multifamily refinance in New York represents the sweet spot for agency execution, where a regional multifamily owner can access agency capital at competitive rates without the complexity of larger structures. In today's market, these deals are pricing 5.90 to 6.10 percent on a 10-year fixed basis, with leverage typically ranging from 65 to 75 percent LTV depending on property class and debt service coverage. New York's tight multifamily supply and consistent rent growth make these assets attractive to agency lenders, particularly for well-maintained buildings in primary and secondary markets across the five boroughs and inner ring suburbs. The refinance narrative often centers on rate improvement, capital extraction for tenant upgrades, or repositioning to a permanent loan structure after value-add work.

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Capital Stack

What a $5M Multifamily Refinance Capital Stack Looks Like

At the $5 million level, agency small-balance programs dominate the execution landscape in New York. Freddie Mac Optigo SBL and Fannie Mae DUS Small are the primary execution vehicles, chosen for their speed, fixed-rate certainty, and lender-friendly underwriting relative to portfolio lenders. Occasionally a regional or community bank will compete on balance sheet, but agency execution typically wins on rate and certainty, making it the default choice for sponsors seeking permanent debt.

Capital Source Rate / Cost Size / LTV Notes
Agency small-balance lender (Freddie SBL / Fannie Small) 5.90 to 6.10 percent fixed, 10-year term $5 million / 65 to 75 percent LTV Primary execution; fixed-rate, non-recourse or limited recourse; 10-year amortization; typical close in 45 to 60 days; full property and borrower underwriting required
Portfolio bank (regional or community bank balance sheet alternative) 5.85 to 6.25 percent fixed or floating, 10-year term $5 million / 60 to 70 percent LTV Faster close possible; more flexible on borrower profile and guarantor requirements; typically requires full recourse; less common execution given agency pricing
Credit union (select markets only) 6.00 to 6.35 percent fixed, 10-year term $3 to $5 million / 60 to 70 percent LTV Limited availability in New York; requires member status or special relationship; slower underwriting; more flexible on property condition and debt service coverage floors

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 $5M Multifamily Refinance Deal

The typical sponsor refinancing $5 million of multifamily in New York is an experienced local or regional operator with $50 million to $200 million in portfolio, 10 to 20 years of hands-on management experience, and a track record of 5 to 15 multifamily acquisitions or value-add deals. Net worth typically exceeds $10 million, with liquidity and reserves in place to satisfy guarantor requirements. These sponsors are motivated by rate improvement from 2022 to 2023 acquisitions, capital extraction to fund unit renovations or common area upgrades, or conversion to permanent debt after stabilization.

From the CLS CRE Pipeline

A Real $5M Example

CLS closed a $5.2 million Freddie Mac SBL refinance on a 47-unit garden-style multifamily property in a secondary Brooklyn submarket in Q1 2024. The property had been acquired 18 months prior at a 7.50 percent floating rate bridge loan; the sponsor had stabilized occupancy at 94 percent and completed $400,000 in unit and lobby upgrades. The new loan locked 5.98 percent fixed on a 10-year amortization, 70 percent LTV, with full non-recourse structure and no interest-only period. The refinance extracted $200,000 in cash for reserves and generated significant monthly debt service savings, improving the property's stabilized NOI multiple and positioning it for long-term hold.

Anonymized. All deal references protect borrower and lender identity.

FAQ

$5M Multifamily Refinance New York FAQ

Agency lenders typically lend 65 to 75 percent LTV on stabilized multifamily in New York, depending on property class, debt service coverage, and sponsor experience. Newer construction or trophy buildings may push to 75 to 80 percent, while older walk-ups or buildings with lower DSCR may come in at 60 to 70 percent. Your actual leverage will depend on debt service coverage, property age, and unit count.
Agency small-balance execution typically closes in 45 to 60 days from application to wire, assuming complete and accurate documentation and no material issues during underwriting. Appraisal and borrower verification are the longest lead items; if you are ready to move fast, you can compress the timeline to 35 to 40 days. Portfolio bank alternatives may close in 30 to 45 days but are less common given agency pricing advantage.
Yes, agency lenders will execute cash-out refinances on multifamily, but the loan-to-value calculation is based on the new property valuation, not the purchase price. If your property has appreciated or stabilized, you can extract equity, but you will need to maintain debt service coverage above 1.20x to 1.25x depending on the lender. Interest-only periods are typically not offered on cash-out deals under $7.5 million.
Most agency lenders require a minimum of 1.20x to 1.25x debt service coverage on a $5 million multifamily refinance, calculated on trailing 12-month actual NOI. If your DSCR is below 1.20x, you may be able to bridge with a smaller loan amount or consider portfolio bank execution with a covenant to achieve DSCR within 12 months. Newer or repositioning properties may require a sponsor letter of credit or cash reserve.
Agency loans at the $5 million level are typically non-recourse or limited recourse (carve-outs for fraud, misrepresentation, and operational covenant violations), with a guarantee requirement based on sponsor strength and property performance. Portfolio bank loans often require full recourse or a significant cash reserve. Your lender will specify recourse terms based on your liquidity, net worth, and experience in their underwriting box.


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