Apartment Loan in Boston:

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 an apartment loan in Boston. Caffrey & Company LLC has a special focus in Boston apartment loans.  The most attractive, non-recourse loans 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 $7 million leverage up to 85% is available) you are at the right place.  These specialized apartment loan products are available in all of the Boston suburbs including Cambridge and Newton.

Is the Boston Multifamily Market a good area to invest in?  Here is some market data as of June 2024:

1. Apartment vacancy rates across different quality segments have shown varied trends, with the luxury tier experiencing a notable year-over-year increase, while Class A vacancy rates were 20 basis points lower than mid-tier rates in March 2024.
2. Despite challenges posed by the magnitude of construction, the more solid Class A vacancy rate and significant rent growth at a national level are positive indicators for development.
3. The multifamily market in 2024 is expected to witness an increase in apartment deliveries, leading to a 2.2 percent rise in market inventory. However, the vacancy rate is projected to reach 5.0 percent by the end of 2024, while still healthy this is the highest since 2009.
4. Boston’s average effective rent is anticipated to grow by at least 2.0 percent in 2024, contributing to a five-year gain of over 22 percent.
5. Job growth in Boston is expected to improve, with the metro’s unemployment rate standing at 2.7 percent in April 2024.
6. Vacancy rates in specific submarkets such as Fenway-Brookline-Brighton and Southwest Boston contributed to the market-wide rate rising to 4.7 percent, while only a few submarkets experienced decreased or stable vacancy rates over the past year.
7. The forward-looking pipeline shows over 18,000 units underway with scheduled delivery dates extending to 2026, with the largest share of these in East Middlesex County and Fenway-Brookline-Brighton.
8. Rockingham-Strafford Counties experienced a substantial 13.8 percent annual rent gain, indicating robust growth in this submarket.

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 an apartment building loans in Boston.  Therefore, this will help to achieve the best pricing and loan terms for your apartment building or commercial real estate investment.

Free Loan Quote for an apartment building loan:

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, re-position the property (renovations).

Next we will need to understand your investment objectives.  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 apartment loan in Boston loan request.

We understand the financing of an apartment complex is a very important component of your 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.  We can review and provide some up front multifamily loan options.

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 $7 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 an apartment building loan in Boston.  Closing costs vary between loan products.  Before you reach for your checkbook  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.

Want more details and sample interest rates for apartment check out Interest Rates for Apartment Loans also on our web site:   Multifamily Loan Interest Rates.

Keep Caffrey & Company in mind when searching for a Massachusetts lender for apartment loans. Have a question please call:  Mike Caffrey (913) 402-7077 or email: [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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