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Apartment Loan in Cincinnati:

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 Cincinnati. Caffrey & Company LLC has a special focus in Cincinnati 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 Cincinnati suburbs including Indian Hill, Oakley, Stetson Square and Hyde Park.

Cincinnati Apartment Trends and Outlook 2021

Trends for Cincinnati area 2021 expect to see 2.5% job growth creating 27,300 new jobs.  In part, due to the COVID-19 pandemic, new construction starts are expected to be 1.4% of stock less than prior years with 2,200 units being added to the inventory.  Vacancy rates are expected to stay strong at 3.9%.  This is an increase over 2020.  2021 expects rents to increase overall by 2.9% bringing the average to $1,052 per month.

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 Cincinnati.  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:

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 Cincinnati 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 multifamy 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 Multifamily loan in Cincinnati.  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.

Cincinnati Multifamily Market Data:

Apartment construction has been ramping up, helping to drive demand in key submarkets. More than half of all deliveries were in the Northeast Cincinnati/Warren County and the Campbell/Kenton Counties submarkets, with added inventory facilitating absorption in both submarkets. Developers may be taking an interest in these areas due to their affordability relative to the Central Cincinnati submarket. Renters recently followed suit as apartment operators in the Central and the North Central Cincinnati submarkets experienced the largest declines in annual net absorption, while the Northeast Cincinnati/Warren County and the West Cincinnati submarkets had the largest increases. Monthly rent in the Central and the North Central Cincinnati submarkets averaged $1,353 and $1,078, respectively. The same metrics for the Northeast Cincinnati/Warren County and the West Cincinnati submarkets were $1,244 and $787, respectively. Even though new inventory facilitated absorption, leasing activity trailed inventory growth on a metro-wide basis. Greater Cincinnati occupancy dropped 50 basis points since last year to 95.8%, and as a result annual rent growth slowed from 5.3% in the first quarter of 2020 to 2.8% this quarter.

Occupancy Drivers:

Persistent economic development in Central Cincinnati and one of the nation’s tightest single-family home markets supported continued rent growth and a bevy of new apartment construction
in 2020 and 2021 for the Cincinnati multifamily industry. Developers brought 2,165 units online in 2020, more than doubling deliveries from the previous year. This trend occurred amid an annual drop in apartment demand caused by COVID-19.  Apartment operators increased concessions, but effective rent still rose 2.2% to $1,018 over the past 12 months. Multiple factors are stoking long-term optimism for multifamily in Cincinnati: apartment demand metro-wide is expected to ramp up over the next 12 months in concert with new office and retail development in the Central Cincinnati and Northeast Cincinnati/Warren County submarkets. Likewise, effective rent is expected to increase, up 1.6% to $1,034 by the end of 2021. Occupancy is projected to drop 40 basis points this year to 95.8% due to supply-side pressure but will continue to exceed the five-year annual average. In the Central Cincinnati submarket, the metro’s central business district is humming with historic office redevelopments that have succeeded in attracting relocating companies across multiple industries, including several law firms encouraged by pandemic conditions
to seek out cost-effective space in a rapidly modernizing urban environment.

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 an Ohio 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