Multifamily refinance is where we live. Most of the deals we close every year are stabilized apartment owners rolling out of expiring bridge debt, agency loans reaching maturity, or sponsors pulling equity out of assets that have grown into their basis. The question is rarely 'can I refinance?' — it's 'what's the right structure, and which lender wins the deal?'
When to start the refinance conversation
- 6–9 months before maturity if you're on bridge debt
- 12+ months before maturity on agency or CMBS with prepay penalties
- Immediately if the asset has stabilized above pro forma and there's meaningful trapped equity
Which lender bucket actually fits
The right question isn't 'agency vs. bank' — it's 'what does this asset and this sponsor need for the next 5–10 years?' We map every deal against four buckets:
- Agency (Fannie / Freddie / HUD) — best fixed-rate execution, longest term, tightest prepay
- Bank / credit union — relationship pricing, recourse trade, flexible prepay
- Life company — long-term fixed, low LTV, quiet money
- Debt fund — bridge or value-add, floating rate, real cost but real speed
Sizing the loan: DSCR before LTV
Most sponsors ask 'how much LTV can I get?' The lender is asking 'what DSCR will the trailing net operating income support at today's coupon?' In this market, DSCR is the binding constraint on nine deals out of ten. We size to a stressed coupon and back into proceeds — that number is what matters.
Non-recourse: what it actually means and when we get it
Non-recourse is one of the most valuable — and most misunderstood — features of a multifamily loan. In plain English: the lender's remedy on a default is the property itself. Your personal assets, your other real estate, and your operating cash are not on the hook. It's the opposite of a bank recourse loan, where the sponsor personally guarantees the debt and the lender can pursue the guarantor if the collateral doesn't cover the balance.
It's not literally 'no strings attached.' Every non-recourse loan comes with standard 'bad-boy' carve-outs — fraud, misapplication of rents, unauthorized transfers, environmental issues, voluntary bankruptcy. Behave like a normal operator and those carve-outs never trigger. Cross that line and the loan can spring to full recourse.
We regularly place non-recourse debt on stabilized multifamily through agency (Fannie, Freddie, HUD), life companies, and select CMBS execution. Bank refinances typically start recourse, but on the right sponsor and asset we negotiate burn-off provisions — recourse steps down as DSCR and occupancy hit defined thresholds, and can go non-recourse entirely. If non-recourse is a priority for you, tell us early. It shapes which lender bucket we run and how we structure the ask.
Cash-out refinance: what's actually available
Cash-out is back on the table for assets that have genuinely grown into their basis and have durable trailing NOI. Agency will do it, non-recourse, at meaningful proceeds when DSCR supports it. Banks will do it selectively, typically with recourse. The paperwork burden is heavier than sponsors remember from 2021 — plan for it.
How we run a refinance
- Week 1–2: underwriting package, rent roll normalization, TTM walk, sponsor schedule
- Week 2–3: competitive lender canvass — typically 8–15 lenders, four term sheets
- Week 3–6: term sheet negotiation and selection
- Week 6–10: closing, third-party reports, legal, funding
If you're staring at a maturity or sitting on a stabilized asset that could be paying you more equity, this is the conversation we have every week. That's the mandate.
Have a deal that fits this thesis?
We place debt and equity on commercial real estate transactions over $5 million. If any of this maps to what you're working on, let's talk.
