Apartment Loan in Miami, Florida:
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 Miami, Florida. Caffrey & Company LLC has a special focus in Miami, Florida 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 Fort Lauderdale and Pompano Beach.
Let’s see how the Miami Multifamily market is holding up. This is what the lenders will be reading as well. This information is as of June of 2024.
- Corporate relocations and expansions by employers like Citadel Securities and SH Hotels & Resorts are driving job growth in Miami-Dade, creating around 8,000 new positions with average salaries of over $100,000.
- The increased white-collar employment is boosting demand for consumer-facing services and aiding broader hiring.
- The average effective apartment rent in Miami was 23 percent above the U.S. mean in 2019 and is expected to nearly double by the end of this year.
- Rising insurance rates and other housing costs are impacting the financial benefits of relocating, shifting the emphasis to corporate investment in supporting jobs and demographic growth.
- Class B and C rentals are facing construction challenges, with Class A vacancy dropping below 3 percent in late 2021 and multifamily developers rapidly accelerating construction activity across the metro.
- The condensed delivery volume of new constructions is outpacing leasing, pulling Class A vacancy above 5 percent last year and flattening rent growth.
- Mid- and lower-tier rentals are more insulated from the supply pressure and benefiting from demand for lower-cost housing options.
- Metrowide vacancy is expected to inch up to 5.0 percent due to increased construction activity, matching the 2020 peak.
- Rents are projected to reach an average of nearly $2,600 per month by the end of the year, up nearly 50 percent compared to 2019.
- Miami-Dade’s labor market is growing at a pace of roughly 2 percent, with hiring momentum particularly apparent in leisure and hospitality.
- The metrowide vacancy rate held flat at 4.7 percent through March 2024.
- Construction activity has increased over the last four quarters, with nearly 1,700 additional units delivered compared to the prior period.
- Effective rates for mid- and low-tier apartments continued to climb across the market, with mean increases topping 5 percent year-over-year through March for each class.
- Rents in Miami’s suburbs are rising at a faster pace than in the central business district, with North Central Miami leading the way at 11.3 percent.
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 Miami, Florida. Therefore, this will help to achieve the best pricing and loan terms for your apartment 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 Miami, Florida 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 Miami, Florida. 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 Florida lender for apartment loans. Have a question please call: Mike Caffrey (913) 402-7077 or email: Mike@CaffreyLoans.com