Apartment Loan in Denver:

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 Denver. Caffrey & Company LLC has a special focus in Denver 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 Denver and suburbs including: Aurora, Lakewood, Boulder, Centennial, Cherry Creek and Littleton.

Is the Denver area a good place for multifamily investments?  Will lenders provide low interest rate loans on apartment buildings in the Denver market?  Let’s take a look at the market as of June of 2024:

In the first three months of 2024, developers added over 3,000 units across the metro, marking the only time since at least 2000 that quarterly delivery volume exceeded this threshold. Another 14,000 units are slated for delivery this year. Fortunately, there is solid in-place demand for most new apartments, as Class A vacancy rose just 10 basis points from January to March of this year. Employment-driven in-migration is expected to support an uptick in household formation, and the more than $2,500 per month gap between average Class A rent and the mean mortgage payment on a median-priced home should stoke demand for new rentals.

Despite the positive outlook, there will be near-term volatility. The RiNo, Golden Triangle, and Tech Center neighborhoods will contend with groups of high-rise projects, while rental stocks in Aurora and Broomfield are expected to grow by more than 2,000 units each. However, the lower-cost section of the metro seems to be outperforming. Denver’s southern submarkets are well positioned as four zones in the area reported vacancy compression over the past 12 months, contrasting the broader metro wide trend of upward momentum. Locally discounted rents are likely attracting families and individuals to Southeast Denver, South Lakewood, and Southeast Aurora-East Arapahoe County.

Delivery volume in 2024 will nearly match the combined completions total from the prior two years, expanding rental inventory by 5.2 percent, which ranks as the sixth highest nationally. Nevertheless, supply additions exceed demand, at least over the short term, raising the metro’s vacancy rate to 6.7 percent. This higher vacancy rate may require more properties to offer concessions or maintain their monthly rates to fill units. The metro’s mean effective rate has risen to $1,910 per month as a result.

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 Denver.  Therefore, this will help to achieve the best pricing and loan terms for your apartment building or 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 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 Denver 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 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 Denver.  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 Colorado 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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