Loans for Apartment Buildings:
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 multifamily loans. Caffrey & Company LLC has a special focus in providing a Boston apartment building loan. 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 a Boston apartment building loan. This will help achieve the best pricing and loan terms for your 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 Multifamily Properties:
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 the loan. 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.
Multifamily Market Forecast for Boston:
Boston has attracted the high-tech state of the art employers which in turn has attracted more Millennials. Boston boast the highest concentration of Millennials at 39.0% in the country. The Millennial Class is also one of the most sought after group of renters.
Boston Multifamily absorbtion is strong:
The Boston market experienced strong Multifamily expansion in 2019. The market absorbed the new delivers as evidenced by an overall market occupancy of 96%. The costs of infill locations, limitations due to physical geographic limits will continue to push costs higher for new deliveries. With rents at or near $5.00 per square foot for properties in the downtown Boston area 2020 will test the higher levels.
Demand for Multifamily properties for sale out strips supply:
Institutional investors are attracted to the Boston market keeping cap rates at the lower end. For 2019 investor demand out striped the supply of product to acquire. We expect to see continued new delivers in the suburbs in order to offer more affordable rents.
The forecast for the Boston Multifamily Market remains strong for 2020. For 2019 the Boston population grew by nearly 36,000. Nearly 35,000 new jobs came on line. With the average sales price os home well north of $550,000 makes renting an attractive alternative.
Apartment Inventory in Boston Metro:
Total 307,500 units, 5,885 new units came on line with 5,679 aborption. Boston rents increased by 3.9% while maitaining a very healthy overall occupancy rate of 96%.
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 on a Boston apartment building loan and sample interest rates for apartment check out Interest Rates for Apartment Loans also on our web site: Apartment Loan Interest Rates.
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.