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 properties.  Caffrey & Company LLC has a special focus in providing a Louisville 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.

Apartment Trends and Outlook 2021 Louisville

Forecasts for Louisville area 2021 expect to see 2.8% job growth creating 29,100 new jobs.  In part, due to the COVID-19 pandemic, new construction starts are expected to be less than prior years with 4,800 units being added to the inventory.  Vacancy rates are expected to stay strong at 4.4%.  This is an increase over 2020.  2021 expects rents to increase overall by 3.5% bringing the average to $1,062 per month.

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 Louisville apartment loan.  Therefore, this will help to 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.

Louisville Multifamily Market Update:

Multifamily builders delivered 2,624 apartments in the Louisville metro area in 2020, the greatest annual number of completions in at least 20 years. This surge during a pandemic may have appeared ill-timed, but the metro area’s diverse economy helped minimize disruption in both the labor and the multifamily markets. From May to December 2020, 75,700 jobs were created or
recovered, accounting for 57% of the jobs lost from March to May. Apartment demand simultaneously improved, contributing to net absorption of 2,127 units for all of 2020. Even so, deliveries eclipsed demand, resulting in 94.6% year-end apartment occupancy, a 40-basis-point annual decrease. Operators responded to the drop by increasing concessions to entice renters, which lowered average monthly effective rent 0.7% year over year to $903. During 2021, monthly effective rent is forecast to rise 3.3% to $933. Apartment deliveries are expected to decrease from 2020’s elevated levels, though should remain higher than the historical norm as 1,932 units come online. Net absorption of 2,015 units is forecast, resulting in a 20-basis-point increase in occupancy to 94.8%. The sustained absorption will be underpinned by continued economic recovery anticipated in 2021. This rebound will be boosted in part by the addition of thousands of workers at Ford Motor Company’s two local manufacturing plants.  Ford’s staffing and production increases will be timely, as Wards Auto and Trading Economics are forecasting an increase of at least 4% in light vehicles sales nationwide 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 Kentucky 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