Loans for Apartments in Minneapolis:
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 Minneapolis Apartment loans. Caffrey & Company LLC has a special focus in providing a Minneapolis 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 Minneapolis 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 shortlist 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 know your objective, how much do you wish to borrower on the Minneapolis 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.
Minneapolis-St. Paul Multifamily Market Report 2021:
The high construction level continues for the 10th year. Since the beginning of 2012, almost 40,000 apartments have been completed throughout the metro and deliveries are due to reach a new peak in 2021. Robust renter demand during the decade warranted the surge in inventory as marketwide vacancy hovered at or below 4 percent for all but two quarters until the pandemic hit. The coronavirus altered renters’ needs as some lost jobs and sought more affordable rent, while others searched for larger spaces to accommodate additional remote activities. Outdoor amenities also became more important for apartment seekers. As a result, more people moved out of the central cities for rentals in the suburbs.
Changing priorities widen disparity among submarkets. More tenants leaving high-rise apartments in the denser urban cores during a period of elevated deliveries drove up the vacancy in Central St. Paul and Downtown Minneapolis-University to the highest in the metro. The rate in these submarkets vaulted at least 340 basis points during 2020 to 7.8 percent and 7.6 percent, respectively. Rent, meanwhile, contracted more than 4 percent as concessions expanded. At the same time, demand for rentals in more affordable suburbs with larger units and outdoor amenities rose. As a result, vacancy during 2020 fell below 3 percent in the Anoka County, East St. Paul, and Burnsville-Apple Valley submarkets, pushing up rent in those areas.
Apartment Vacancies were up due to the Pandemic:
The surge in completions drives the vacancy rate up to 4.9 percent this year, the highest year-end rate since 2009. Vacancy will vary widely among urban and suburban submarkets as well as by class types. Although higher vacancies still in the health zone if looking for an apartment loan for a Minneapolis property.
Market for Multifamily in Minneapolis, Twin Cities:
The Minnesota government announced easing several COVID-19 restrictions this quarter, benefiting the economy and apartment market. The executive order allowed indoor gatherings of up to 15 people, outdoor gatherings of up to 50 people, and restaurants and bars were approved to operate at 75% capacity, among other things. The announcement coincided with Minneapolis-St. Paul employers adding over 52,000 jobs year to date, 34,000 of which were in the leisure and hospitality sector. Metrowide multifamily construction this quarter was significant: apartment supply increased by over 2,000 units. Meanwhile, net absorption was recorded at nearly 800 units. Positive leasing activity was driven by new inventory and rebounding employment. Notwithstanding these forces, apartment absorption trailed inventory growth and led to a drop in occupancy to 95.2%. Metro apartment operators continued lowering monthly effective rent as they faced increased competition to an average of $1,342 in the first quarter of 2021. Minnesota plans to further ease COVID-19 restrictions beginning April 1 by allowing entertainment venues to accommodate up to 3,000 people and allowing certain groups of up to 10,000 people to gather.
Twin Cities by the numbers:
Unemployment for the Twin Cities at the beginning of 2020 stood at 3.0% – at the end of the first quarter of 2021 unemployment was well below the national average at 4.3%. The Metros have not regained all of the jobs present prior to the Pandemic with 1.9 million jobs a decrease of 100,000. Overall the population showed a gain of 0.9% to 3.7 million as of the first quarter of 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.
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.