Apartment Loan in San Francisco:
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 San Francisco. Caffrey & Company LLC has a special focus in San Francisco 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 San Francisco suburbs including Oakland and Berkeley.
The Apartment Investment is strong. Lenders treat this as a Major market. This often allows for lower interest rates than other smaller markets. Let’s look at the midyear market facts as of June of 2024.
San Francisco’s real estate market is bucking the national trend as vacancy rates tighten post-pandemic. Despite elevated construction levels in other metros, San Francisco’s vacancy rates are dropping due to slowing deliveries, allowing new renter demand to bolster the market. Although effective rents have not shown significant upward progress, the momentum is expected to build, especially if labor dynamics improve.
However, recent job losses pose a potential hurdle for the market. Apartment net absorption increased last year despite local labor market contraction, indicating that income interruptions are not deterring people from living in the metro. Yet, if local hiring momentum takes longer than expected to build, it could have a delayed impact on multifamily demand, particularly in the city itself. Nevertheless, several core locations in San Francisco saw a decrease in vacancy year-over-year in March 2024, suggesting resilience in the face of potential headwinds.
Looking ahead to 2024, San Francisco County is expected to see scarce apartment completions, with the focus of deliveries shifting south of the county to cities like San Mateo and Menlo Park. With tempered construction, the metrowide vacancy rate is projected to fall to 5.3 percent by year-end, marking a significant decrease since vacancy began steadily declining in early 2021. Additionally, despite recent volatility, the general trend points to renewed employment growth, with headcounts expected to expand more outside of business services-related fields.
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 San Francisco. 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 San Francisco 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 San Francisco. 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 California 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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