Apartment Loan

Raleigh NC

Submit your loan application for a Free Quote

Apply Now

Apartment Loan in Raleigh NC:

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 Raleigh, NC. Caffrey & Company LLC has a special focus in Raleigh-Durham-Chapel Hill 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 Raleigh as well as suburbs including Durham, Apex, Holly Springs, Cary, Chapel Hill and Creedmoor.

Loan Underwriting for an apartment loan in Raleigh NC:

Each loan product has unique underwriting requirements.  Above all, how the loan data is presented to North Carolina 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 Raleigh.  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 Raleigh-Durham-Chapel Hill:

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 Raleigh 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 Apartment Loan in: Raleigh-Durham-Chapel Hill?

The closing process normally takes between 45 and 55 days to close a Multifamily loan in Raleigh.  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 data for Raleigh Durham markets:

Economic improvement attracts new residents and boosts apartment demand. Prior to the health crisis, strong job creation was supporting a consistent rate of net in-migration in Raleigh-Durham-Chapel Hill.  This influx bolstered the local demand for housing and commercial space. From June to September, the metro’s major employment sectors recorded encouraging hiring activity, recapturing 59,000 positions lost during the early months of the pandemic. This job creation has spurred household relocations and formations that are improving leasing velocity at rental properties. During the third quarter, more than 3,000 units were absorbed, placing vacancy below the metro’s prior five-year average. The reduction in unit availability occurred as nearly 1,700 units were delivered, signaling strong demand for higher-priced rentals prior to another wave of completions.

Construction activity remains heightened. A hotbed for development over the past five years, the metro has recorded an influx of supply additions in 2020 despite the health crisis altering some projects’ timelines. This trend persists in the fourth quarter as 1,300 rentals are slated for completion and office and industrial delivery volumes are both expected to total 1.8 million square feet. Recently strong apartment absorption and month-over-month gains in job creation suggest demand for new rentals will persist, while most office and industrial properties slated for finalization are pre-leased. Additionally, two-thirds of the 600,000 square feet of retail space slated for finalization has lease agreements in place, with most available space located at a mixed-use property in Chapel Hill.

Job loss from the Pandemic is showing signs of recovery:

Metro recovering positions across all employment sectors. Entering October, the Triangle’s diverse collection of employers had recaptured more than 40 percent of the 143,000 positions lost from March to May, lowering unemployment to 5.2 percent. Aided by its well-educated population, professional and business services companies added 8,000 positions from June to September. Additionally, the harder-hit leisure and hospitality, and education and health services industries have recouped between 30 percent and 40 percent of the jobs shed during the initial months of the pandemic. The University of North Carolina and North Carolina State University have announced plans to hold in-person classes.  And allow for on-campus living this spring, which would further improve the outlook for these sectors. However, a fall spike in weekly COVID-19 cases may alter these plans if statewide numbers continue to rise.

Out of towners are coming to Portland for acquisitions:

Out-of-state investors pursue sizable assets and portfolios. Institutional and value-add buyers that venture into tertiary markets have expanded their local holdings or established a footprint in the metro during the health crisis. The Triangle’s number of newly built Class A apartments and 1990s-built Class B assets are attracting East Coast-based buyers willing to accept high-3 percent returns for 100-unit-plus rentals. Higher-quality office buildings comprising more than 100,000 square feet are garnering attention from coastal gateway buyers. Retail-focused investors from outside the Triangle are focusing on assets that have excelled during the pandemic, namely supermarkets, drugstores and discount shops.

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 North Carolina 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