Apartment Loans in Philadelphia:

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 Philadelphia. Caffrey & Company LLC has a special focus in Philadelphia 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 Philadelphia suburbs including Camden and Wilmington.

Let’s take a look at the Philadelphia’s multifamily market.  This is what the lenders will see.  This information was as of the end of the second quarter of 2024:

In 2023, Philadelphia experienced strong net absorption as over 4,700 units were occupied, with the trend continuing into the first quarter of 2024. While new deliveries reached a record high, the vacancy rate is expected to remain one of the lowest in the country, despite the upward pressure caused by increased supply. The construction pipeline is mainly focused in downtown areas, leading to higher vacancy rates there compared to suburban areas like Bucks County.

Philadelphia’s suburbs saw significant population gains due to in-market migration, with Montgomery and New Castle counties, as well as South New Jersey suburbs, experiencing notable increases. As a result, the vacancy rate in Burlington County was as low as 3.2 percent in March, and limited construction in this area is likely to maintain tight vacancy rates in the long term. Additionally, commuters seeking more space outside the Central Business District (CBD) are expected to drive further growth in suburban areas.

In terms of construction, deliveries are projected to reach a 25-year high in 2024, leading to a 2.6 percent increase in Philadelphia’s inventory. Center City alone will account for nearly 45 percent of the new units, with over half of the projects having fewer than 100 doors. Despite the surge in new units, Philadelphia is anticipated to record the smallest vacancy rate increase among major U.S. markets, with the average effective rent closing at a new all-time high of $1,834 per month by the end of 2024.

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 Philadelphia.  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 commercial real estate 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 Philadelphia 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 Philadelphia.  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 Pennsylvania 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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