Loans for Apartments:
Since April of 2000 Caffrey & Company LLC has been helping real estate investors nationwide find the best loan product for commercial real estate investment properties. Call for great rates for commercial and multifamily loans. Caffrey & Company LLC has a special focus in a Dallas Fort Worth apartment 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 Dallas Fort Worth apartment loan. Therefore, this will help 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 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 projections for Dallas Fort Worth:
Although Dallas Fort Worth metros overall payroll were down 4.2% year over year in February 2021, they were markedly higher than the April 2020 low point. From April 2020 to February 2021, payrolls grew 8.4% as employers created or reinstated 289,500 jobs. By February 2021, local employment recovered fully in the trade, transportation, and utilities and the financial activities sectors. Part of the additions came as Fidelity Investments hired approximately 550 employees across their Metroplex locations due to unprecedented growth in business during the pandemic. The local job market fueled robust in-migration, a significant contributor to the net absorption of 3,766 apartment units in the first quarter of 2021. Leasing activity trailed the 6,951 deliveries so far this year. Deliveries in key areas facilitated leasing activity though, as net absorption in the last three months was highest in the submarkets with the most additions: Allen/McKinney, Frisco, and Intown Fort Worth/University. Even so, supply side pressure metrowide contributed to 94.0% occupancy in the first quarter, a 30-basis-point quarterly decrease. Meanwhile, effective rent reached $1,193 per month, a 1.0% quarter-over-quarter increase.
Underlying trends strengthening out of the health crisis. The less-stringent shutdown in Texas, along with cost-of-living and quality-of-life considerations, could help accelerate already strong in-migration to Dallas/Fort Worth. From 2010 through last year the metroplex recorded a growth in population exceeding 20 percent, buoyed by the in-migration of almost 800,000 residents. Demand for apartments will also benefit from a widening affordability gap, with the median home price in the metro jumping by 11.4 percent last year to $306,300. Northern suburbs have been particularly appealing to renters, with the Frisco-Prosper and Carrollton-Farmers Branch submarkets combining for more than 3,800 units of net absorption in 2020.
Supply headwinds, storm damage limit near-term momentum. Dallas/Fort Worth will add more than 24,000 units for the fifth consecutive year in 2021, growing inventory by 17.5 percent over that span. The suburbs are adding apartments at a brisk pace, with upward of 28,000 units slated for finalization this year. Allen-McKinney will add the largest share among suburban submarkets in 2021, with nearly 3,500 rentals in the pipeline, though the area has a below-market vacancy rate at 5.1 percent. Conversely, development will taper in Carrollton-Farmers Branch to 860 doors this year, compared with 3,940 units over the past two years. Marketwide, vacancy could also be impacted in the near term by resident displacements dictated by the winter storm damage.
Multifamily Outlook by the numbers for Dallas and Fort Worth:
The metro will recover all of the 81,800 positions lost inDelivery volume this year will reach its highest level in the past two decades. Upon completion, the units slated for finalization in 2021 will increase stock by roughly 3.8 percent, exceeding last year’s 3.1 percent expansion. 2020 and begain growth momentum this year. Entering 2021, the market’s unemployment rate of 6.5 percent was up 330 basis points annually, benefiting firms seeking available workers. Delivery volume this year will reach its highest level in the past two decades. Upon completion, the units slated for
finalization in 2021 will increase stock by roughly 3.8 percent, exceeding last year’s 3.1 percent expansion. Supply overhang after a moderate year of absorption in 2020 will coincide with record deliveries in 2021, pressuring vacancy in the near term. The vacancy rate should increase to approximately 6.2 percent this year after rising 60 basis points in 2020. Despite vacancy continuing to rise, strong demand for rentals and new builds charging premium rates will support positive rent growth for the 12th consecutive year. The average effective rent will reach $1,192 per month in 2021.
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 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.