Apartment Loan in New Orleans:
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: New Orleans. Caffrey & Company LLC has a special focus in New Orleans 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 New Orleans as well as suburbs including Metairie.
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 New Orleans. 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 New Orleans:
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 New Orleans 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 can place these under one loan. 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 New Orleans. 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.
Apartment Market in New Orleans not expected to fully recover until 2022:
New Orleans’ economy and apartment market were challenged in 2020 by the COVID-19 pandemic and Hurricanes Laura and Zeta. Damage from the two hurricanes forced approximately 12,000 residents to flee homes and apartments for temporary refuge in hotels. Amid these challenges, builders completed 1,370 apartments in the New Orleans metro area in 2020, the greatest annual deliveries since 2008. Consequently, apartment occupancy descended 140 basis points to 94.5% by year-end as net absorption trailed significantly.
New Orleans Decrease in Effective Rents:
At the same time, average effective rent decreased 0.6% to $1,027 per month in December. Apartment deliveries will diminish in 2021, but economic malaise will persist in some employment segments, further affecting apartment fundamentals. Albeit to a much lesser extent than in 2020. Effective rent this year is forecast to decrease 0.4% to $1,023 per month. While occupancy descends 60 basis points to 93.9%. In 2022, metrowide employment recovery is expected to continue, and this expansion will lift apartment occupancy and rent. Apartment net absorption is forecast to significantly outpace the 33 apartments scheduled for delivery in 2022, resulting in a projected 30-basis-point increase in occupancy to 94.2% by year-end. Meanwhile, average effective rent is forecast to rise 2.3% to $1,047 per month. Aiding the employment bounceback and the apartment outlook in 2022 will be the return of NOLA-based hospitality jobs.
For example, hotels, shops, and restaurants will ramp up hiring for the return of Mardi Gras in 2022, which historically draws 1.4 million visitors who spend about $1 billion in New Orleans.
In conclusion when looking for a Louisiana apartment lender contact Caffrey & Company. You will 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 Louisiana 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.