Apartment Loan in Charlotte:

For over 20-years Caffrey & Company LLC has been helping real estate investor’s nationwide find the best interst rates for apartment loans in Charlotte. Call for current low rates for an apartment loans in Mecklenburg County.  Caffrey & Company LLC has a special focus in Charlotte 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 Charlotte suburbs including Concord and Gastonia.

Is the Charlotte, North Carolina multifamily market a good place to invest and to take out a apartment building loan?  Below find market data as of June 2024:

1. Charlotte’s multifamily construction has increased due to rapid population growth, leading to higher vacancy rates and increased competition among operators to offer concessions to renters.
2. The use of concessions has led to a drop in the metro’s mean effective rent in the last two quarters, with the Class A sector being most affected.
3. The current occupancy headwinds resulted in building permits falling in the first three months of the year, hinting at slowing construction in the coming years.
4. Charlotte is expected to welcome roughly 142,000 residents through in-migration over the next half-decade, with young professionals accounting for a large share of this growth.
5. Companies like Alpitronic Americas, Inc. and Palmetto establishing headquarters in the metro, as well as record enrollment at the University of North Carolina, contribute to a growing age 20 to 34 demographic, which is generally prone to renting.
6. The multifamily 2024 outlook forecasts sustained supply pressure, resulting in a higher metro vacancy rate and a slip in the average effective rent to $1,530 per month by December.
7. Employment in the metro is expected to increase by 2.2 percent due to in-migration and corporate growth.
8. Supply additions have placed upward pressure on vacancy, with the rate reaching 7.1 percent, although the increase was less than previous period.
9. Charlotte saw a 6.7 percent increase in total stock over the past year and the average effective rent dropped to $1,550 per month in March of 2024.
10. Class A and B assets experienced the most substantial downward rent adjustments year-over-year, while Class C properties saw an increase in the mean rent.

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 Charlotte.  Therefore, this will help to achieve the best pricing and loan terms for your multifamily 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 Charlotte 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 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 Charlotte.  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.

In conclusion you find details on several loan products by following these links: 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:   Multifamily Loan Interest Rates.

Keep Caffrey & Company in mind when searching for a North Carolina 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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