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Apartment Loans:

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 Indianapolis. Caffrey & Company LLC has a special focus in Indianapolis 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 Indianapolis suburbs including Carmel and Anderson.

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 Indianapolis.  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 Multifamily 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 an apartment loan in Indianapolis:

  • 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 Indianapolis 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 a Multifamily loan in Indianapolis.  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.  We will also be able to estimate the closing costs to allow you to make an informed decision before moving forward.

Indianapolis Market Information:

Population Growth continues:  Indianapolis has attracted professionals from other gateway communities.  Indianapolis costs of living index and cost of doing business below that of the national average.  Much of the new population growth comes from regional cities such as Chicago.  In 2020 the Indianapolis Metro reported net population growth of 17,300.  We saw employers adding over 28,900 in new jobs.  Despite affordable single-family housing at $226,400, the Indianapolis market absorbed more units than came online in 2020.

Multifamily Market Indianapolis:

A total of 1,900 new units came on-line in the Greater Indianapolis Metro with 1,070 units completed in Carmel alone.  In the fourth quarter 1,800 additional apartments are underway in the Greater Metro. When compared to other USA cities Indianapolis multifamily has had one of the strongest performances in the nation.  Indianapolis witnessed the vacancy rate falling 90 basis points in the third quarter to 4.2 percent. Strong demand for luxury rentals reduced vacancy rates on Class A properties down 120 basis points to 6.2 percent. This tight vacancy helped to propel rental rates.

Rents increased in Indianapolis:

The average effective rent increased 1.2 percent quarter over quarter to $949 per month in September.  Downtown Indianapolis was the main exception to an overall strong market showing; average rent in the urban core fell 2.3 percent. Properties traded at an 8 percent premium from a year earlier. This stronger demand also helped reduce the average cap rate down to 6.6% as 20 basis point improvement. Buyers looking for suburban apartments most frequently targeted Anderson in Madison County and Noblesville in Hamilton County.

Absorption exceeded new units:

For 2020 the total inventory of units came to 151,880 with a new inventory of 1,110.  Once again absorption of 2,366 out-striped new units.  At the end of 2020 market occupancy reported to be at 92.2%.  This is after an average rent increase of 4.5%.

Unemployment fell to 3.2% a record low for the Indianapolis market.  Most of the investors were focused on Class C and B properties.  We expect the market to remain stable with slow growth and strong employment.

In conclusion, you will find details on several loan products by following these links: Freddie MacFannie 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 Indiana 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]