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Apartment Loan in Chattanooga, TN:

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 Chattanooga. Caffrey & Company LLC has a special focus in Chattanooga 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 Chattanooga as well as suburbs including Lookout Mountain, Signal Mountain, Hixon, Red Bank and East Brainerd.

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 Chattanooga.  Therefore, this will help to achieve the best pricing and loan terms for your multifamily building or commercial real estate investment.

Free Loan Quote for Commercial Real Estate Loans in Chattanooga:

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 multifamily 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 Chattanooga 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 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 a Multifamily loan in Chattanooga.  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.

Chattanooga Multifamily Market Data:

Real estate investors are buying up Chattanooga area apartment complexes for prices that have shot up 35% to 40% over the past several years, and rents are rising along with those values, leaving some tenants struggling to hang onto their housing. Chattanooga rents average 19% less than the U.S. average of $1,487 for a two-bedroom unit, but local rents , growing at more than six times the increase in average income in the past year. A study of apartment rental rates showed the average two-bedroom apartment in Chattanooga renting for $1,200 a month, or 17.6% more than a year before. In 2020, there were sales of more than $400 million of multi-family housing properties in Hamilton County, nearly double the $233 million of multifamily sales in all of 2019. Four of the five highest prices ever paid for Chattanooga apartments came from sales to out-of-town real estate investment firms in late 2019 and throughout 2020, including the $63.15 million purchase of the BlueBird Row Apartments in March and the $46.8 million purchase of the Parc 1346 apartments in November 2020.

Chattanooga By the Numbers:

Average unit price jumped from $102,531 in 2019 to $130,199 in 2020.  Cap Rates widen from 6.1% to 6.4% during this same period.  Despite the Pandemic the Metro saw a 2.1 increase in employment from 266,800 in first quarter of 2020 to 272,400 as of the first quarter of 2021. Medium househol income was nearly flat; %54,722 in 2019 and $58,409 for the first quater of 2021.

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 Tennessee 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.

Have a question please contact
Mike Caffrey
Telephone: (913) 402-7077