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 Saint Louis 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 Saint Louis 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.
Saint Louis Market Data:
Diverse job creation and recovering home values bolster St. Louis rentals. Spanning the past two years, nearly 8,000 apartments were absorbed in the metro, lowering vacancy by more than 200 basis points. Heightened demand was registered in St. Louis’ suburban and core areas, with all submarkets recording declines in vacancy amid the delivery of 4,800 units metrowide. Widespread vacancy compression coupled with well-received supply additions elevated St. Louis’ average effective rent 10 percent during the 24-month span, matching the pace of home price appreciation. In 2020, continued job creation will raise the metro’s median household income at a pace that exceeds the national rate of increase, bolstering demand for mid- to higher-tier apartments as construction activity moderates. With demand drivers in place, further reduction in vacancy is anticipated for 2020, supporting a rate of rent growth that notably outpaces the historical average.
Span of robust leasing and strong rent gains attract private value-add investors. Tight vacancy in the low- and mid-tier sectors is fueling buyer competition in suburbs and neighborhoods adjacent to the core, where cap rates above 8 percent and sub-$50,000 per unit pricing is prevalent. Older properties in these locales possess notable upside potential, with assets potentially delivering NOI growth following operations and facility upgrades. Suburban neighborhoods near St. Louis International Airport garner notable out-of-state buyer attention, as this area features the largest inventory of mid- to larger- Class B and C listings. Local investors focus on smaller Class C buildings in neighborhoods south of Interstate 44, including Dutchtown, and cities east of the core in Illinois, where sub-$5 million trades dictate overall deal flow. In core St. Louis, select opportunities to acquire newly built properties for more than $20 million will continue to drive overall sales volume in the metro moving forward.
In conclusion can read about specific loan products for a Saint Louis apartment loan . 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.