Apartment Loan in San Antonio:
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 San Antonio. Caffrey & Company LLC has a special focus in San Antonio 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 San Antonio suburbs including New Braunfels.
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 San Antonio. 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:
- 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 San Antonio 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 an apartment building loan in San Antonio. 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.
1Q21 San Antonio Multifamily Market Report:
Prior to the shutdown, San Antonio was a benefactor of the state’s lenient business policies witnessing an unemployment rate 0.5% below the national average. However, on par with many cities, San Antonio lost a significant number of jobs during the shutdowns. The unemployment rate rose to 13.7% and 118,500 jobs were lost with the majority of jobs lost in the leisure, hospitality, education and health sectors. Once again, the metro benefitted from the state’s policies as it was able reopen and recover at a faster pace than most metros. Apartment vacancy jumped 50 basis points during the second quarter of 2020 but recovered by the third quarter. In 2021, the metro is expected to return to pre-pandemic levels and continue to benefit from lenient business policies, increasing migration and large supply of workers. Many firms are relocating to Texas due to these reasons and a number of notable firms have chosen San Antonio as their main hub. Amazon has pledged to open two distribution centers which will employ 1,500 people, Sea World is set to add 500 jobs, and Navistar is accruing new properties that will house 650 people. This combination of factors is increasing demand in the metro at a rate that supply is not consistent with, availability declined 120 basis points during 2020 with a net absorption of 745 rentals. In 2021, expect the average sales price to rise as inventory is not expected to match demand due to the growing employment and economy in the metro.
By the numbers:
Employment is expected to fully recover in 2021 as 40,200 new jobs are anticipated. Inventory in the metro is expected to grow by 2-percent which is lower than other Texas markets but, nonetheless, 4160 new units will be completed. Vacancy is anticipated to decrease by 50 basis points and end around 6 percent by the end of 2021. With demand outpacing supply, effective rents are expected to increase by 1.8% and climb to $1,027 per month. In 2020, transaction velocity declined by 5 percent with investors focusing their interests on Class B and C assets. Additionally, average sales price declined by 3 percent and average cap rates fell to a record low of 5.9 percent.
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.