Loans for Apartments:
Since April of 2000 Caffrey & Company LLC has been helping real estate investors nationwide find the best loan product for commercial real estate investment properties. Call for great rates for a multifamily loan in Cleveland, Ohio. Caffrey & Company LLC has a special focus in providing a Cleveland apartment loan. The most attractive, non-recourse loan terms start at $1,000,000 for multifamily property loans. Therefore, if you are looking for low-interest rates, a non-recourse loan up to 80% of the value (Over $5 million leverage up to 83% to 85% is available) for your Apartment Building Loan you are at the right place.
Apartment Building Loan Underwriting:
Each Apartment building loan product has unique underwriting requirements. Above all, how the loan data is presented to the lenders can have a negative or positive impact on pricing and loan proceeds. We offer this expert loan underwriting for a Cleveland apartment loan. Therefore, this will help achieve the best pricing and loan terms for commercial real estate investment. We encourage our clients to submit key property-level data for a free loan underwriting review. This initial loan underwriting normally takes less than one business day for us to respond with several apartment loan options for you to consider. Here is a shortlist of property level data that would aid in providing a loan quote:
Required Underwriting information needed:
- Last two years and Year-To-Date detailed Profit and Loss statements (in addition a trailing 12-month P&L is best if available) on the apartment complex.
- Current Rent Roll
- Brief narrative description of the property.
- If available a few electronic photos. Or a copy of the real estate agent’s marketing package.
- What is the purpose of the loan? Acquisition, Refinance, cash out, reposition the property (renovations).
Next, we will need to know your objective, how much do you wish to borrow from the apartment complex? Is this a long-term investment or a short-term investment? In otherwords, outline your loan request.
We understand the financing of an apartment complex is a very important component of the investment. Therefore, we encourage our client to send us details on the property before finalizing the purchase and sale contract for an indication of the type of loan that might be available to a particular property.
Cleveland Multifamily Market Report:
Tenants are moving out of multifamily properties in urban neighborhoods and heading towards lower costs and more spacious suburbs. At the end of 2020, suburban vacancy rested at 3.6 percent, less than half of the rate reached in the urban core. In addition, five of the metro’s suburban submarkets posted vacancies below 3 percent last year. This low vacancy rate allowed for a suburban rent gain of 1.9 percent last year, compared with a slight decline in the urban core. With few new multifamily units coming online in the suburbs amid an expanding employment base metro-wide is expected to hold vacancy tight.
New inventory in the city core will keep vacancy elevated. Nearly all of the units due for completion in 2021 are located in Cleveland’s Central Business District. These additions will likely place upward pressure on Class A vacancy this year. Many of the new units are redeveloped and repurposed of former office towers that are converted into apartments adding 350 units to the CBD. The coronavirus has impeded demand for higher-priced rentals in the city core, the need should improve as vaccines become widespread and more workers return to offices.
Investors closing on assets in good locations helped push prices up by 6.2 percent to nearly $64,400 per unit in 2020. Class A properties less than 10 years old can change hands for more than $200,000 per door. The average cap rate held steady in the 8 percent area. Buyers searching for value-add opportunities may find buildings in higher-vacancy submarkets including East, Central, and Southeast Cleveland. Meanwhile, investors seeking a steady cash flow may opt instead to look farther from the metro core in areas where tight vacancy is boosting rent gains, such as in Euclid or Lake County.
Cleveland Multifamily Market by the numbers:
Trends for Cleveland area 2021 expect to see 2.8% job growth creating 27,300 new jobs. In part, due to the COVID-19 pandemic, new construction starts are expected to be less than prior years with 490 units being added to the inventory. Vacancy rates are expected to stay strong at 3.1%. This is a decrease over 2020. 2021 expects rents to increase overall by 3.5% bringing the average to $1,014 per month. The Multifamily inventory increased by just under 1.0% (0.9%) with 1,451 units coming online in 2020. Vacancy declined to 3.5%, a 20 basis point drop, even with a significant amount of new inventory coming online. The new inventory affected the Class A properties which experienced a vacancy increase of 200 basis points to 6.7% at yearend.
Fixed Rate Loan Terms are Available for Multifamily Properties:
Multifamily loans in Cleveland are available from 3-years up to 35-years (40-years for new construction on loans over $5 million). The Apartment buildings can be Garden Style, High Rise, Age Restricted, Student Housing, Section 8 Tenants and subsidize properties. There must be at least 5-units. If you have several buildings all with five or more apartment units that you wish to place under one loan no problem, the buildings should be within 3 to 5-miles from the other properties for best loan terms.
How long will it take to close the Loan?
The closing process normally takes between 45 and 55 days to close the loan. Closing costs vary between loan products. Before you put any funds out we will provide a detailed estimate of the anticipated closing costs. At this stage, you will know the loan product, the loan terms, and the anticipated closing costs to allow you to make an informed decision before moving forward.
In conclusion, can read about specific loan products. Freddie Mac, Fannie Mae, HUD/FHA, Commercial Mortgage Back Securities (CMBS) and other loan products. Want more details and sample interest rates for multifamily loans in Cleveland check out Interest Rates for Apartment Loans also on our web site: Apartment Loan Interest Rates.
Keep Caffrey & Company in mind when searching for an apartment loan in Cleveland or in the state of Ohio. Have a question please call: Mike Caffrey (913) 402-7077 or email: Mike@CaffreyLoans.com
On our web site you can read about specific loan products: www.caffreyloans.com/loan-products, offered by Freddie Mac, Fannie Mae, HUD/FHA, Commercial Mortgage Back Securities (CMBS) and other loan products. Want more details on sample interest rates for apartment check out Interest Rates for Apartment Loans also on our web site: www.caffreyloans.com/apartment-loans.