Apartment Loan in

Minneapolis

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Apartment Loan in Minneapolis:

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 Minneapolis. Caffrey & Company LLC has a special focus in Minneapolis 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 Minneapolis and suburbs including St. Paul and Bloomington.

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 Minneapolis.  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 Minneapolis 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 Minneapolis.  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.

Market for Multifamily in Minneapolis, Twin Cities:

Elevated construction level continues for 10th year. Since the beginning of 2012, almost 40,000 apartments have been completed throughout the metro and deliveries are due to reach a new peak in 2021. Robust renter demand during the decade warranted the surge in inventory as marketwide vacancy hovered at or below 4 percent for all but two quarters until the pandemic hit. The  coronavirus altered renters’ needs as some lost jobs and sought more affordable rent, while others searched for larger spaces to accommodate additional remote activities. Outdoor amenities also became more important for apartment seekers. As a result, more people moved out of the central cities for rentals in the suburbs. Changing priorities widen disparity among submarkets.

Minneapolis Apartment Migration to the Suburbs:

More tenants leaving high-rise apartments in the denser urban cores during a period of elevated deliveries drove up vacancy in Central St. Paul and Downtown Minneapolis-University to the highest in the metro. The rate in these submarkets vaulted at least 340 basis points during 2020 to 7.8 percent and 7.6 percent, respectively. Rent, meanwhile, contracted more than 4 percent as concessions expanded. At the same time, demand for rentals in more affordable suburbs with larger units and outdoor amenities rose. As a result, vacancy during 2020 fell below 3 percent in the Anoka County, East St. Paul and Burnsville-Apple Valley submarkets, pushing up rent in those areas.

New Construction for Minneapolis St. Paul:

Inventory will increase 2.7 percent during 2021 as deliveries rise to the highest level in more than 21 years. Suburban submarkets are slated to receive more than 5,000 of this year’s
new apartments.

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 Minnesota 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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