Apartment Loans in Detroit:
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 Detroit. Caffrey & Company LLC has a special focus in Detroit 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 Detroit suburbs including Warren and Dearborn.
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 Detroit. Therefore, this will help to achieve the best pricing and loan terms for your apartment building or commercial real estate investment.
Free Loan Quote:
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 Detroit 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 an apartment building loan in Detroit. 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.
Detroit Demand Drivers for Apartments:
The work-from-home trend that started in spring 2020 prompted some urban Detroit renters to move to larger and more affordable apartments in the suburbs. Renters desiring more space often upgraded to three-bedroom apartments. This demand meant that average annual rent growth and gains in occupancy among three-bedroom units outpaced the smaller apartments by a sizable margin. While some renters did exit the urban core, rolling four-quarter net apartment absorption remained positive in the Downtown/Midtown/Rivertown submarket. The submarket was the only one in the metro with a year-over-year reduction in rent—and even the 2.7% drop was much smaller than in urban cores in several other markets. Metrowide, average monthly effective rent advanced 5.1% year over year to $1,028 in the first quarter of 2021. During the same period, occupancy among all apartments averaged 96.9% in the first quarter, up 90 basis points from one year earlier. This increase occurred as builders delivered 1,217 apartments. The upward trend in apartment fundamentals was aided by the creation or restoration of 379,400 jobs in the metro area from April 2020 to February 2021.
Detroit Market Outlook for 2021 by the Numbers:
Employment job growth up 4.9% or 90,000 jobs will be added. The market expects to see an additional 2,900 apartment units come on line. Vacancy should continue to drop to 2.5% a 10 basis point decrease. Rents are expected to increase by 5.5% for an average unit rent of $1,114 per month.
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 Michigan 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.