Apartment Loan in Milwaukee:
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 Milwaukee. Caffrey & Company LLC has a special focus in Milwaukee 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 Milwaukee suburbs including Waukesha.
How will lenders view the Multifamily Market in Milwaukee? Below is market data for Milwaukee as of June of 2024:
- Milwaukee entered 2024 as one of just three major markets in the U.S. with a vacancy rate of 4 percent or lower.
- Net absorption from January through March 2024 fell under 50 units, the softest first quarter for apartment demand since 2014.
- Fewer than 400 units opened from January through March 2024, roughly two-thirds of the first quarter average spanning the past five years.
- Net absorption is expected to hold under 1,500 units for a third straight year, after surpassing that benchmark in every period spanning 2017-2021.
- Milwaukee will be one of just six major markets nationally to surpass 2.5 percent rent growth in 2024, with the local figure climbing to $1,586 per month.
- Market inventory grew by 1.6 percent between April 2023 and March 2024, the same expansion rate as the prior year.
- All three apartment segments registered year-over-year vacancy increases between 60 and 90 basis points.
- Milwaukee’s average effective rent rose by the fastest annual pace among major U.S. markets as of the first quarter of 2024.
- Racine’s 23 percent rent surge to $1,333 per month led the metro and ranked as the fastest in the entire country.
- 12-month period vacancy rate was 6.4% with 2,534 units completed.
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 Milwaukee. 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 in Milwaukee:
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 Milwaukee 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 Milwaukee. 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.
Milwaukee Multifamily Market Data 4th Quater 2020:
Approximately 460 units were completed in the third quarter of 2020, bringing annual deliveries to 2,000 rentals. The South Side/West Allis/Greenfield submarket gained 560 doors so far this year, expanding the local inventory by 2.0 percent. Vacancy tightened to 3.2 percent, with the rate dropping 20 basis points from July through September 2020. All three classes of apartments noted lower availability in the quarter, signaling diverse demand. Notably, the vacancy rate in the central business district dropped 20 basis points during the third quarter after rising in the previous period, an indication that downtown rentals remain appealing. The average effective rent grew nominally in the third quarter to $1,193 per month. The Franklin/Oak Creek area led all submarkets with a 1.2 percent gain from July through September, following a 2.5 percent increase in the second quarter of 2020. Asset valuation increased 2 percent over the trailing 12 months ended in September to an average price of $92,000 per unit. The average first-year return remained flat at 6.8 percent. • Buyers looking higher on the quality scale targeted Waukesha and downtown, where Class B apartments have traded near $100,000 per unit on average.
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 Wisconsin 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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