Kansas City

Apartment Loan

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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 commercial real estate investment properties. Call for great rates for commercial and multifamily loans in Kansas City.  Caffrey & Company LLC has a special focus in a Kansas City 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 Kansas City apartment loan.  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 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.

Market outlook for Kansas City Metro

The Kansas City market continues to show stability supported by a half of decade of steady absorption.  Employment growth continues with major employers such as Cerner and recently announced USDA relocation.  The market saw new construction of 3,600 units and net absorption of 3,200 units.  New jobs and positions came to 23,000.  Vacancy for Metro came to 5.2% with rent growth of 3.6%.  The downtown loop area saw cap rates fall below 5% on new properties.  Investors looking for higher yields are considering class C properties in the Johnson County area.

Housing Outlook in Kansas City:

Multifamily developers have been building in the metro’s premier submarkets, with current projects and deliveries concentrated in Kansas City’s central business district. The downtown population quadrupled in the last decade and is expected to grow 50% in the next five years. With about 4,850 deliveries metrowide last year, additions reached a 10-plus year high. At the start of this year, 6,700 units across 35 projects were under construction. The supply surge amid the pandemic tested the K.C. apartment market. On a quarter-over-quarter basis, overall occupancy settled at 94.5% as net apartment absorption was positive metrowide and in most submarkets. Domestic net migration flow of 1,200 new residents in the first quarter and rising household formation buoyed leasing activity. Simultaneously, effective rent increased 0.2% to $1,007 per month and operators recorded positive collection trends. For households needing help to pay back rent, $30 million in additional COVID-19 federal relief are available. On the jobs front, K.C. employers restored 68% of the jobs shed since the onset of the pandemic. Most recently, the U.S. Department of Agriculture brought roughly 500 jobs to downtown and the $1.5 billion Kansas City International Airport project sparked a construction hiring boom.

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 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