Apartment Lender: Albuquerque
Since April of 2000 Caffrey & Company LLC has been helping real estate investor’s nationwide find the best loan product from Apartment Lender for Albuquerque. Call for great rates for an apartment loan in Albuquerque, New Mexico. Caffrey & Company LLC has a special focus in providing loan products for Alburquerque Multifamily properties. 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 $6 million leverage up to 83% to 85% is available) you are at the right place. We can provide a free loan quote in 24 hours.
Albuquerque economy and outlook:
Albuquerque, New Mexico Job Growth
Albuquerque-area employers began rehiring workers after the pandemic-driven low point in employment in April 2020. By March 2021, local payrolls expanded with 27,100 additional workers. During that time, local housing demand surged in response to extended stay-at-home orders in New Mexico. Some of the lengthiest in the country. Some households needing more space or a dedicated home office moved to a larger dwelling. While, others scaled back to a more affordable apartment because of a layoff or job uncertainty. All asset classes benefited from the heightened demand.
Class A units performed best:
Upper-tier apartments were often the choice of renters seeking more space. Class A apartment occupancy rose 120 basis points year over year area as average effective rent in this segment increased 10%. At the other end, renters on a budget gravitated to the generous selection of lower-tier apartments in the most-affordable submarket, Uptown, where annual net absorption of 420 units outpaced all other submarkets. Overall, apartment occupancy reached 96.5% in the first quarter of 2021, a 110-basis-point annual gain. In the same period, average effective rent advanced 8.4%—one of the steepest gains in the country—to $940 per month.
Albuquerque is Affordable
The 3-bedroom homes in Albuquerque are 8% more affordable than the median value nationwide. In the neighborhoods where RealWealth members invest home values are 37% less than the average 3 bedroom home nationwide. This shows us that Albuquerque real estate is uniquely affordable.
Albuquerque Offers Cash Flow Opportunities:
Three-bedroom homes in Albuquerque can rent for up to 0.89% of the purchase price in some neighborhoods, compared to 0.75% nationally.
Albuquerque is Stable numbers as of First Quarter 2021:
Multifamily Occupancy 96.5% up 110 basis points since the first quarter of 2020. Effective Rents $961 also an increase of over 8% during the same period in 2020. Total Multifamily units 56,228.
Albuquerque’s Population and Labor Market:
During the last half of 2020, Albuquerque’s labor market began to rebound from the May 2020 employment low. By December, 17,100 jobs had been created or restored. Nevertheless, local payrolls were down 7.3% from December 2019. The rebound during the summer and fall was great enough to generate healthy apartment leasing activity prior to a seasonal slowdown in demand in the fourth quarter. By year-end 2020, average apartment occupancy was 96.1%, 80 basis points higher than one year earlier. At the same time, effective rent averaged $909 per month, a 2.5% annual gain.
Market Forecast for 2021:
Continued economic improvement is anticipated in 2021, albeit at a slower rate than the May to December 2020 rebound. While remaining positive, net apartment absorption in 2021 is forecast to decelerate because of slowing economic recovery and slackening household formation. The net absorption of 350 apartments is projected in 2021 as 423 new apartments are delivered. Apartment occupancy is forecast to dip 10 basis points during 2021 to 96.0% by year-end. Operators are expected to keep upward momentum on rent, increasing monthly effective rent an average of 2.5% year over year to $932 in December. Household growth, net migration, and employment expansion in 2022 are projected to accelerate from 2021, fueling positive apartment absorption and improved fundamentals. Average apartment occupancy is forecast to reach 96.2% by year-end 2022, while effective rent rises 3.1% annually to $961 per month.
Loan Underwriting for Apartment Lender in Albuquerque:
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 Albuquerque apartment building loans to 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 for an Apartment Lender: Albuquerque :
- 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 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 from Apartment Lenders for the Albuquerque Market:
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.
On our web site you 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 New Mexico lender for apartment loans. Have a question please call: Mike Caffrey (913) 402-7077 or email: Mi[email protected]
On our web site you 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 New Mexico lender for apartment loans. Have a question please call: Mike Caffrey (913) 402-7077 or email: Mi[email protected].
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
[email protected]
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