Apartment Loan in

Kansas City

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Apartment Loan in Kansas City:

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 Kansas City. Caffrey & Company LLC has a special focus in Kansas City 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 Kansas City suburbs including:

Overland Park, Olathe, Shawnee, Liberty, Gladstone, Independence and Blue Springs.

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 Kansas City.  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 Multifamily Loan in Kansas City:

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 Kansas City 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 Kansas City.  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.

Market outlook for Kansas City Metro:

The underlying multifamily fundamentals were strong at the beginning of the pandemic, and as the economy continued to reopen and progress, multifamily activity rebounded quickly throughout 2020. Kansas City’s occupancy rate has remained above 95% for 26 consecutive quarters. By year-end overall occupancy settled/remained at 95.4%, an improvement relative to the first half of 2020, however down 10-basis points from this time a year ago. Given the magnitude of job losses and the decrease of economic activity experienced in the second quarter, the apartment market fared better than anticipated in terms of occupancy and rental collection to this point. New investors are discovering the Midwest, and specifically, Kansas City’s diverse economy and resiliency throughout the pandemic. The multifamily sector for Kansas City remains particularly desirable to investors because of a multitude of factors including a flight to safety, stable rents, affordability, and higher yields, which are expected to translate into another positive year.

Kansas City Multifamily adds to the market:

Multifamily development in the Kansas City market continues to remain robust. Total inventory reached 171,865 units at the end of 2020, while another 3,753 units are under active construction, slightly above the five-year average annual supply of 3,452 units. Apartment inventory grew by another 2.8% with a total of 5,572 units delivered throughout 2020.

Housing Outlook in Kansas City:

An explosion of industrial growth continues to drive demand around workforce apartment product throughout the Kansas City metro. New logistics and distributions parks are facilitating multifamily demand in areas such as Gardner, Edgerton and Olathe, along with Belton and Raymore. Areas such as Riverside, Clay County and  Wyandotte County with growing industrial parks and distribution hubs will benefit from increased demand.
Several projects located in the urban core and suburban mixed-use infill locations were either completed or are under construction. Submarkets such as River Market, East Crossroads, Crossroads, Overland Park, Lenexa, and Lee’s Summit continue to add development projects. Currently there are 3,753 units under construction, along with
nearly 9,744 units in the development pipeline in various stages of the permitting and planning process.

Increased material costs have slowed some projects that have yet started vertical construction.  Lumber shortages and prices have jumped nearly 300% over the past 18 months.

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 Kansas lender for apartment loans. Have a loan 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