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Apartment Loan in Nashville:

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 Nashville. Caffrey & Company LLC has a special focus in Nashville 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 Nashville suburbs including Davidson, Murfreesboro and Franklin.

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 Nashville.  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 Loan in Nashville:

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 Nashville 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.  This will help determine 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 Nashville.  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 information for Nashville:

Nashville’s job growth to be 6.8% in 2021, with 66,072 jobs added. This is after a 5.1% drop in jobs during the Pandemic.  Job growth is expected to average 3.3% from 2022 to 2024, with an average of 35,988 jobs added each year. On the supply side, permits for 11,297 multifamily units were issued in the 12 months ending in November 2020, up 2,973 units from the prior year’s sum. In terms of total residential housing, 25,498 units were permitted in the 12 months ending November 2020, an increase of 3,562 units from the prior year’s total.

Renters are going back to Downtown Nashville:

The construction pipeline in suburban areas will continue to support an increase in deal velocity south of downtown.  Investors favor the area’s more affordable price points. Value-add, core and core-plus investment strategies are all experiencing healthy demand. That said, the recent rise in ground-up developments is driving an increasing share of activity New construction and refurbished properties representing over 50% of the volume of available product. More thane 6,100 apartment units scheduled for delivery in 2020, which all units have been delivered. As a comparison, there were 3,695 apartment units delivered in 2019. Properties delivered to the market in the last 12 months have achieved an average asking rent of $1,722 per unit, or $1.76 per square foot. Effective rent has averaged $1,609, or $1.64 per square foot, resulting in an average concession value of $170.95. As a comparison, existing properties in the market had an average asking rent of $1,267 per unit ($1.34 per square foot) and an average effective rent of $1,244 per unit, or $1.31 per square foot, in 4Q20. Concessions for existing properties averaged $66.00. Drawing some renters to the downtown area were lower rental rates. Robust demand pushed up the overall occupancy rate 20 basis points since December to an average of 94.5% in the first quarter of 2021. The Central Nashville submarket led the metro with an 80-basis-point improvement in occupancy. Underpinning the sturdy apartment fundamentals was job security. About 72% of the pandemic-induced job losses were restored by February 2021. Furthermore, a significant share of the Downtown Nashville workforce has a low-risk level of elimination at 57.2% compared to the 47.9% national average in low-risk industries.

Nashville by the numbers:

Unemployment of 2.5% at the beginning of 2020.  In early 2021 unemplyment came in below the national average at 4.2%. Apartment occupancy during the fist quater of 2021 came in at 94.5% with Sumner County reporting the best occupancy at 96.3%. While East Nashville reported the lowest average occupancy at 92.5%. Average rents for the Nashville Metro came in at $1,268.  South Nashville reported the lowest monthly rental rate at $1,161. Franklin/Brentwood area demanded the highest aveage rents at $1,399 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 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