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Why 2025 Is Still a Strong Year for Multifamily Refinances (If You’re Prepared)

Multifamily Investments
June 03, 2025•1 min read

Despite uncertainty in rate movements, 2025 presents meaningful opportunity for well-prepared multifamily owners.

Here’s why.

1. Rent Fundamentals Are Stabilizing

After a volatile few years, most markets are showing:

  • Stable occupancy

  • Moderate rent growth

  • Strong leasing demand

This increases lender comfort with underwriting.

2. Bridge Loan Maturities Are Forcing Activity

Many owners who took bridge debt in 2021–2022 are approaching maturity.

This has created momentum in the refinance market — and lenders are competing for stable assets.

3. Proven CapEx Is Creating Stronger NOI

Owners who invested in:

  • Unit upgrades

  • Energy efficiency

  • Smart tech

  • Amenity improvements

…are seeing measurable rent premiums.

Lenders reward this with better loan terms.

4. Private Credit Is Offering More Flexible Structures

As banks remain conservative, private lenders are stepping in with:

  • Higher LTV

  • Longer IO

  • Bridge-to-perm products

  • Faster underwriting

Competition creates opportunity.

5. Prepared Owners Will Outperform the Market

The opportunities in 2025 won’t go to the owners with the best properties, they’ll go to the owners who are most prepared.

That means:

  • Clean financials

  • Strong tenant profiles

  • Clear narratives for rent growth

  • Evidence-based underwritten assumptions

  • A well-structured refinance package

Refinancing is more competitive but also more rewarding for owners who treat it strategically.

Helpful Link

Costar Multifamily Market Reports → https://www.costar.com

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