Apartment Loan in Portland:
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 Portland. Caffrey & Company LLC has a special focus in Portland 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 Portland suburbs including Vancouver and Hillsboro. Be sure to obtain a free loan quote from Caffrey & Co. when searching for a Portland lender.
Multifamily Loan Underwriting:
Each loan product has unique underwriting requirements. Above all, how the loan data is presented to the Portland lender can have a negative or positive impact on pricing and loan proceeds. We offer this expert loan underwriting for an apartment building loans in Portland. 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 an apartment building loan:
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 for an Apartment Loan in Portland:
- 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 Portland 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 an Apartment Loan in Portland:
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 Multifamily loan in Portland. 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.
Mutlifamily market information for Portland Oregon:
Some newly remote workers are leaving pricey coastal cities for less dense, less expensive options, and the Portland metro area seems to be reaping the benefits of that trend. Rental demand was on solid footing as leasing activity surged in late-2020 with pent-up demand in suburban submarkets like Vancouver. To meet the need for more housing, builders delivered nearly 6,000 units in the Portland region in 2020 and that total has increased each of the past five years. The wave of mostly high-end supply spurred legislative changes to address affordability: inclusionary housing in 2017 and statewide rent control in 2019.
Builders are eyeing other markets:
While construction persists, though tapering, in urban submarkets, builders are pivoting to submarkets like Vancouver. This is where projects are not subject to Oregon’s housing regulations. Oversupply of about 300 units metrowide resulted in occupancy dropping to 95.1% in first quarter. This could result in a 20 basis point drop year over year. In the 1st Quarter after years of steady growth, average apartment effective rent in the metro slid 0.3% since March 2020 to $1,439. Even with the decline, some renters struggled to pay rent. Between April 1 to 20, 2021, 90.9% of renter households made a full or partial rental payment, down from 95.0% one year ago.
Portland Oregon Apartment Market Data for the first Quarter of 2021:
Apartment inventory grew 2.8 percent in 2020, up from a 2.5 percent hike one year earlier. Since 2017, East Portland has received the greatest portion of the new units. Deliveries will remain heightened as there are another 9,300 rentals underway with completions scheduled into 2022. Strong demand for rentals in the second half of 2020 dropped metrowide vacancy to 4.4 percent at year end. New inventory contributed to Class A vacancy rising 160 basis points to 7.7 percent. The Class B and Class C rates dipped 70 basis points to 4.0 percent and 30 basis points to 2.6 percent, respectively. Following a 4.2 percent surge in 2019, the average effective rent held steady in 2020 at $1,427 per month. However, there was wide variation among classes. Rising vacancy in Class A cut rent 5.2 percent. While the average rate in Class B and Class C properties rose 0.9 and 1.6 percent, respectively.
Average Unit Price in recent sales increase:
Strong investor interest at year end contributed to the average price climbing 4 percent in 2020 to above $200,000 per unit for the first time. Since 2015, the price has jumped more than 50 percent; however, entry costs still remain at least 24 percent below other larger West Coast metros. The average cap rate, meanwhile, has held in the mid-5 percent range during this time.
In conclusion you find details on several loan products for apartment loans in Portland 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 Oregon 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
Mike@CaffreyLoans.com
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