Apartment Loan in El Paso, TX:
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 El Paso. Caffrey & Company LLC has a special focus in El Paso, TX 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 El Paso as well as suburbs.
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 El Paso. 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 El Paso, TX:
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 El Paso 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 El Paso. 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.
El Paso Multifamily Market enjoy’s job recovery:
Rebounding employment in the El Paso metro area supported apartment demand in the last four quarters. During that time, renters occupied 470 additional apartment units, significantly greater than the 115 units that were delivered. The four-quarter net absorption was about 29% lower than the five-year average but was noteworthy, considering the economic disruption caused by the pandemic. Metro employment fell 11.5% from February to April 2020 with the loss of 37,500 jobs. Since that time, however, 25,600 positions were created or restored through March 2021, an 8.8% increase. Payrolls in the professional and business services, the education and health services, and the trade, transportation, and utilities sectors reached at least 97% of their pre-pandemic levels. This recovery contributed to apartment leasing activity which exceeded inventory growth, resulting in a 90-basis-point annual increase in occupancy to 96.4% in the first quarter of this year. Meanwhile, average effective rent reached $827 per month, a 2.3% year-over-year gain. No new apartments are anticipated in the metro area through 2023, which bodes well for near-term apartment fundamentals, providing economic recovery continues.
Apartment Market forecast for El Paso is Positve:
By year-end 2020, local payrolls in the trade, transportation, the financial activities, the education and health services, and the government sectors reached at least 96% of pre-pandemic levels. Approximately 21,000 of the 44,000 metrowide jobs lost from January 2020 to May were recovered by December. The gradually improving economy supported apartment demand as renters occupied 258 additional apartments in 2020, with positive net absorption in the second and third quarters transitioning to seasonal negative net absorption in the fourth quarter. Annual absorption outpaced the 160 newly completed apartments in 2020, resulting in a 20-basis-point increase in occupancy to 95.9% in December. While rent continued to rise, the 1.3% annual
rent growth last year was noticeably lower than the 3%-plus rent appreciation in each of the prior two years. In 2021, operators are expected to start returning rent growth to the annual pace prior
to the pandemic. Average monthly effective rent is projected to rise 2.0% to $833 per month.
Meanwhile, slowing apartment demand is anticipated, spurred in part by continued softness in leisure and hospitality payrolls. Net apartment absorption is forecast to approximate the number
of deliveries in 2021, keeping average occupancy unchanged from 2020. Only about a dozen apartment units are anticipated to come online in 2021, followed by 544 units slated for delivery in 2022. As the economy continues recovering in 2022, apartment occupancy is forecast to rise 30 basis points to 96.2% while monthly effectiverent reaches $857, a 2.9% increase.
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 Texas 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.