Apartment Loan

Kansas City

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Loans for Apartments:

Since April of 2000 Caffrey & Company LLC has been helping real estate investor’s nationwide find the best loan product for an apartment loan in Kansas City. Call for great rates for commercial and multifamily loans in Kansas City.  Caffrey & Company LLC has a special focus in a apartment loans in the Kansas City Metro.  The most attractive, non-recourse loan 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 $5 million leverage up to 83% to 85% is available) you are at the right place.

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 loan in Kansas City.  Therefore, this will help to achieve the best pricing and loan terms for commercial real estate investment.  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, reposition the property (renovations).

Next we will need to know your objective, 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 loan request.

We understand the financing of an apartment complex is a very important component of the 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.

Fixed Rate Loan Terms are Available for Apartment Loans in Kansas City:

Loan terms are available from 3-years up to 35-years (40-years for new construction on loans over $5 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 apartment loan in Kansas City.  Closing costs vary between loan products.  Before you put any funds out 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 Data for Multifamily in the Kansas City Metro:

Coming out of the Great Recession, apartment developers ramped up deliveries across Greater Kansas City. This resulted in annual additions peaking in 2020, even amid the coronavirus outbreak. While subsequent construction activity is scheduled to taper, demand for housing near employment hubs is expected to support additional supply. Heading into 2021, about 5,400 units are underway, and the bulk are scheduled to complete before year-end. Renters have shown a preference for amenity-rich options in the metro’s premier submarkets, with current projects and
deliveries in the next four quarters concentrated in the Central Kansas City and South Overland Park submarkets (where we are located). The success of luxury communities in the downtown area has been helped by Kansas City’s foothold as a Silicon Prairie metro, drawing wealthy, educated millennials. Metro wide leasing activity will succumb to supply-induced pressure causing a 50-basis-point decline in the occupancy rate to end 2021 at 94.1%. A key component of sustaining apartment demand will be how the local economy rebounds from the coronavirus initiatives meant to stem the extent of the pandemic. So far, employment numbers are encouraging: 71,850 of the jobs lost earlier in 2020 were restored, an 88% recovery. Over the next three years, hundreds of new jobs are planned at GEICO, the USDA Economic Research Service, and the USDA National Institute for Food and Agriculture. Apartment operators will capitalize on the rising payrolls and healthy occupancy by advancing monthly effective rent. At $1,016 in December 2021, projected effective rent will be up 2.0% annually.

By the numbers:

Occupancy rate down 50 basis points from 2020 to 94.1%, Effective average rent up 2.0% to $1,016 per month year over year. Average price per unit $102,619 in 2019 and a drop of 9.7% in 2020 to $92,653.  Cap rates compressed from 6.1% in 2019 to 5.3% in 2020.

In conclusion can read about specific loan products. 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:   Apartment Loan Interest Rates.

Keep Caffrey & Company in mind when searching for a Missouri or Kansas 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