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Apartment Loans in Chicago:

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 Chicago. Caffrey & Company LLC has a special focus in Chicago 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 suburbs including Naperville, Elgin, Clarendon Hills, Oak Brook, River Forrest, Burr Ridge, Western Springs, Buffalo Grove and Highland Park.

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 Chicago.  Therefore, this will help to achieve the best pricing and loan terms for your commercial real estate investment.

Free Loan Quote:

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 multifamily 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 Chicago 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 Chicago.  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.

Multifamily Chicago Market:

Transaction velocity slowed 30 percent in 2020 from one year earlier, mainly due to weak trading in the second quarter as many buyers waited on the sidelines during the pandemic shutdown. Sales velocity picked up in the second half of the year but remained below the prior period’s final two quarters.  During 2020, the average price dipped slightly to $157,700 per unit after a minimal increase one year earlier. The average price sits 4 percent below the national mean, while the average cap rate at 6.6 percent is 150 basis points higher than the U.S. average. These factors should lure a wide range of investors seeking lower entry costs and the potential for higher yields. Many local and regional private investors focused on Class B/C properties with less than 50 units in well-established neighborhoods. Within the city of Chicago, some buildings that are more than 50 years old changed hands for an average of $64,100 per door during 2020 with cap rates more than 140 basis points above the metro average.

Apartment trends:

The rise in vacancy produced a drop in the average effective rent to $1,472 per month as many owners increased concessions to fill units. The largest decline of 6.7 percent was posted in Class A units. Class B rent held relatively steady at $1,412 per month and the average Class C effective rent rose 2.1 percent to $1,097 per month. Deliveries slowed from the 10,350 rentals finalized in 2019 as 8,421 units were added in 2020. The city of Chicago received 4,588 apartments while 3,833 rentals were added in the suburbs. Builders have another 11,800 units underway with completions extending into 2023.

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 an Illinois 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]