Apartment Loan in Boston:
Since April of 2000 Caffrey & Company LLC has been helping real estate investor’s nationwide find the best loan product for commercial real estate investment properties. Call for great rates for an apartment loan in Boston. Caffrey & Company LLC has a special focus in Boston apartment loans. The most attractive, non-recourse loans terms start at $1,000,000 for multifamily properties. Therefore, if you are looking for low interest rates, a non-recourse loan up to 80% of value (Over $7 million leverage up to 85% is available) you are at the right place. These specialized apartment loan products are available in all of the Boston suburbs including Cambridge and Newton.
Multifamily Loan Underwriting:
Each 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 an apartment building loans in Boston. Therefore, this will help to achieve the best pricing and loan terms for your apartment building or commercial real estate investment.
Free Loan Quote for an apartment building loan:
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 short list 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, re-position the property (renovations).
Next we will need to understand your investment objectives. How much do you wish to borrower on the apartment complex? Is this a long-term investment or short-term investment? In other words outline your apartment loan in Boston loan request.
We understand the financing of an apartment complex is a very important component of your 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. We can review and provide some up front multifamily loan options.
Fixed Rate Loan Terms are Available for Multifamily Properties:
Loan terms are available from 3-years up to 35-years (40-years for new construction on loans over $7 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 an apartment building loan in Boston. Closing costs vary between loan products. Before you reach for your checkbook 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.
Multifamily Market Forecast for Boston:
The Boston apartment market experienced the strongest quarterly demand since the third quarter of 2019. Quarterly demand reached over 2,100 units, compared to 2020’s average of 340 units. The Boston labor market made a resurgence, adding 53,000 net jobs this quarter compared to less than 14,000 net jobs added the prior quarter. Part of the recent hires came as life sciences REIT IQHQ Inc. began construction on their $1 billion Fenway Center campus. The project is expected to generate roughly $3 billion in economic impact over the nearly 100-year lease term, creating thousands of new jobs and generating more than $15 million in tax revenue each year for Boston. The labor market was not the only factor that contributed to stronger demand; single-family home prices hovered around $600,000, and annual new apartment supply registered above the 2020 average. Metro effective rent has been on a downward trajectory since the second quarter of 2020 as operators face increased competition as nearly 9,000 units came online. Metro occupancy continued to hover around 95% as leasing activity was positive in the last year.
Boston Multifamily absorbtion is strong:
The Boston market experienced strong Multifamily expansion in 2020 inspite of the Pandemic. The market absorbed the new delivers as evidenced by an overall market occupancy of 95.1%. The unemployment for the first quarter of 2021 came in at 6.10% this is up from the first quarter of 2020 of 2.6%. Overall population grew by 1/2 of a percent.
Demand for Multifamily properties slipped slightly in 2021 from 2020:
Apartment construction peaked in 2020, reflecting developers’ strong confidence in the Boston multifamily market. Apartment builders brought over 9,700 units online last year, an annual increase of 64%. Deliveries outpaced leasing activity resulting in occupancy falling 90 basis points annually to 95.7% in December 2020. Simultaneously, effective rent lowered 5.0% to $2,279 due in part to increases in monthly concessions by apartment operators. The rapid pace of rehiring and job creation following the loss of 572,000 jobs that occurred between February and May due to the pandemic lockdown inspires hope for the future. By the end of 2020, Boston employers recovered 39% of lost payrolls. This swift pace of recovery is needed as developers are scheduled to bring another 8,100 apartment units online over the next 12 months. A major surge in multifamily demand is expected in 2021 once COVID-19 is under control and daily life in Boston returns to normal.
Apartment Summary for the Boston Metro:
Occupancy 95.4%, average Effective Rent $2,268 down 1/2 percent from 2020. Average price per unit $313,677 in 2019, $313,144 for 2020. Cap Rates witnessed soem compresion from 5.15% in 2019 to 5.0% in 2020.
In conclusion you find details on several loan products by following these links: Freddie Mac, Fannie Mae, HUD/FHA, Commercial Mortgage Back Securities (CMBS) and other loan products. Want more details and sample interest rates for apartment check out Interest Rates for Apartment Loans also on our web site: Multifamily Loan Interest Rates.
Keep Caffrey & Company in mind when searching for a Massachusetts lender for apartment loans. 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.