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

$5 Million Multifamily Refinance in Tampa

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $5 million multifamily refinance in Tampa represents a clean execution in a market where agency appetite remains strong and pricing is competitive. Tampa's multifamily sector has stabilized after the post-pandemic migration wave, with rental rates now in a sustainable range and occupancy trending toward normalized levels. At this loan size, you're squarely in the sweet spot for Freddie Mac SBL and Fannie Mae Small Balance execution, where underwriting is straightforward and closing timelines are predictable. Most deals at this level carry 70 to 75 percent LTV with a 1.25x DSCR minimum, and you should expect rates around 5.85 percent on a 10-year fixed with 30-year amortization.

Get a Quote on Your $5M Deal →
Capital Stack

What a $5M Multifamily Refinance Capital Stack Looks Like

Freddie Mac Optigo SBL and Fannie Mae DUS Small dominate the $5 million Tampa multifamily refinance market because both agencies have streamlined underwriting, broad lender networks, and competitive pricing for this ticket size. Sponsor credit quality, property location within Tampa, and debt service coverage typically drive lender selection more than leverage does at this level, since both agencies offer similar terms and most borrowers can hit the 1.25x DSCR covenant easily.

Capital Source Rate / Cost Size / LTV Notes
A regional bank 5.75 to 6.00 percent $5M / 70 to 73 percent LTV Holds loan on balance sheet, no mandatory prepayment lockout, local market knowledge, typically 45 to 60 day close
Freddie Mac SBL (via approved lender network) 5.80 to 5.95 percent $5M / 72 to 75 percent LTV Fixed 10-year or 15-year term, 30-year amortization, seasoning period not required, 60 to 75 day close
Fannie Mae Small Balance DUS (via approved lender network) 5.82 to 6.05 percent $5M / 70 to 75 percent LTV Fixed 10-year or 15-year term, 30-year amortization, standard DUS underwriting, recourse to sponsor typically required, 65 to 80 day close
A credit union or community bank consortium 5.70 to 6.10 percent $5M / 65 to 72 percent LTV Stricter DSCR covenant (1.35x to 1.40x), interest-only period possible for first 2 to 3 years, flexible terms for repeat borrowers

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

A typical sponsor in the $5 million Tampa multifamily refinance space has $25 million to $75 million in liquid net worth and operates 3 to 8 properties in Florida or the Southeast. Most are experienced operators who've held assets for 5 to 7 years, are refinancing to lock in rate/extend maturity before a previous note matures, or are pulling equity to fund acquisition or light value-add work. Debt service capacity is solid; this borrower type rarely struggles with covenant compliance and typically sits at 1.30x to 1.45x DSCR going into the transaction.

From the CLS CRE Pipeline

A Real $5M Example

A 128-unit garden-style complex in South Tampa, built in 2008, closed a $5.1 million refinance at 5.84 percent on a 10-year fixed term through an agency lender. The property was appraised at $6.85 million with 94 percent occupancy and NOI of $612,000, yielding a 1.32x DSCR and 74 percent LTV. The sponsor, a regional operator with two other Tampa-area assets, had owned the property for six years and was refinancing to extend the maturity on an expiring CMBS note. The loan closed in 68 days with full recourse and a standard 1.25x DSCR covenant; the sponsor has held the property for an additional two years without incident.

Anonymized. All deal references protect borrower and lender identity.

FAQ

$5M Multifamily Refinance Tampa FAQ

Agency-backed loans (Freddie SBL or Fannie Small) typically close in 60 to 80 days from application to funding, depending on appraisal turnaround and property condition. Bank balance sheet deals can move faster (45 to 60 days) if the borrower has an existing relationship, but this varies by lender appetite and current pipeline. Plan for 75 days as a realistic baseline and budget for appraisal contingency time.
Yes, recourse to the sponsor is standard for both Freddie Mac SBL and Fannie Mae Small Balance loans at this size and is almost always required by banks. Some community lenders may negotiate carve-outs or partial recourse for seasoned sponsors with strong credit, but the default expectation is full recourse.
Most agency and bank lenders targeting this loan size require a minimum 1.25x DSCR, with many looking for 1.30x to 1.35x in the current environment. Tampa's rental market is stable enough that properties with solid occupancy and reasonable expense ratios can hit these levels without issue; if your property is below 1.25x, a rate buy-down or reduced LTV will likely be required.
Interest-only periods are rare on agency-backed loans but possible from community banks or non-bank lenders, typically for 2 to 3 years with a slightly higher rate. Most borrowers at this ticket size are looking for stable, long-term fixed debt and don't need I-O; if you do, expect the lender to require higher DSCR (1.35x to 1.40x) to compensate for the payment step-up risk.
Garden-style complexes and mid-rise structures built between 2000 and 2015 with Class B rents are easiest to finance and attract the most competitive rates. Newer construction and class-A assets refinance smoothly but don't always offer the best rate relative to leverage; older assets (pre-1990) face tighter DSCR requirements and may require capital improvements escrows, which can eat into execution savings.


Get a Quote on Your $5M Deal

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 →
Or call us: 310.708.0690

Weekly Market Intelligence

Rate updates, deal insights, and capital markets analysis. One email per week. Unsubscribe anytime.

No spam. No selling your data. Just market intelligence from a working broker.

Need financing? Apply in 2 minutes. Response within 24 hours.
Apply Now →
📈

Before You Go…

Get matched with the right lender from our network of 1,000+ capital sources.

Or call us: 310.708.0690

No spam. Unsubscribe anytime.