Apartment Loan in Cleveland:
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 Cleveland. Caffrey & Company LLC has a special focus in Cleveland 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 Cleveland suburbs including: Chagrin Falls, Oakwood, Highland Heights, Pepper Pike and Orange.
Is the Cleveland, Ohio apartment market healthy for an apartment acquisition financing or to refinance your multifamily property? Below is a market update as of June 2024:
In the first quarter of 2024, Cleveland experienced a higher average lease term for new signings, indicating that renters are committing to staying longer. This is coupled with a limited inventory of single-family homes for sale, resulting in residents staying in the rental market for extended periods. The demand for affordable rents below $950 per month has contributed to positive multifamily net absorption in Cleveland after a period of negative absorption.
Furthermore, the construction of multifamily units is expected to reach its highest level since 2000 in 2024, which may exert some upward pressure on vacancy rates. However, Cleveland has one of the smallest active pipelines on a national scale, and construction starts and project proposals have begun to slow. Overall, the normalization of construction, combined with limited single-family home inventory, is projected to stabilize vacancy rates and maintain strong rent growth in the near term.
In 2024, Cleveland is projected to add approximately 8,000 positions, with the leisure and hospitality sector driving hiring as it approaches its pre-pandemic job count. The city’s inventory is expected to grow by 1.0 percent, with the majority of new units being concentrated around Case Western Reserve University and the Cleveland Clinic Main Campus. Rent growth is anticipated to moderate but still increase to $1,271 per month, maintaining Cleveland’s position as the most affordable metro among the major Ohio markets.
In the first quarter of 2024, Cleveland experienced a higher average lease term for new signings, indicating that renters are committing to staying longer. This is coupled with a limited inventory of single-family homes for sale, resulting in residents staying in the rental market for extended periods. The demand for affordable rents below $950 per month has contributed to positive multifamily net absorption in Cleveland after a period of negative absorption.
Furthermore, the construction of multifamily units is expected to reach its highest level since 2000 in 2024, which may exert some upward pressure on vacancy rates. However, Cleveland has one of the smallest active pipelines on a national scale, and construction starts and project proposals have begun to slow. Overall, the normalization of construction, combined with limited single-family home inventory, is projected to stabilize vacancy rates and maintain strong rent growth in the near term.
In 2024, Cleveland is projected to add approximately 8,000 positions, with the leisure and hospitality sector driving hiring as it approaches its pre-pandemic job count. The city’s inventory is expected to grow by 1.0 percent, with the majority of new units being concentrated around Case Western Reserve University and the Cleveland Clinic Main Campus. Rent growth is anticipated to moderate but still increase to $1,271 per month, maintaining Cleveland’s position as the most affordable metro among the major Ohio markets.
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 Cleveland. 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 Commercial Real Estate Loans in Cleveland:
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 Cleveland 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 apartment 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 a Multifamily loan in Cleveland. 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.
Conclusion:
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 Ohio 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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