Chicago

Apartment Loan

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Loans for Apartments:

Since April of 2000 Caffrey & Company LLC has been helping real estate investors nationwide find the best loan product for commercial real estate investment properties.  Call for great rates for multifamily loans in Chicago, Illinois.  Caffrey & Company LLC has a special focus in providing a Chicago apartment loan.  The most attractive, non-recourse loan terms start at $1,000,000 for multifamily property loans.  Therefore, if you are looking for low interest rates, a non-recourse loan up to 80% of value (Over $5 million leverage up to 83% to 85% is available) for you Multifamily Loan you are at the right place.

Apartment Building Loan Underwriting:

Each Apartment building 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 a Chicago apartment loan.  Therefore, this will help achieve the best pricing and loan terms for commercial real estate investment.  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, reposition the property (renovations).

Next we will need to know your objective, 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 loan request.

We understand the financing of an apartment complex is a very important component of the 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.

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 $5 million).  The property 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 the loan.  Closing costs vary between loan products.  Before you put any funds out 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.

Multifamily Chicago Market:

Supplies for a phased rollout of the COVID-19 vaccine first became accessible to select Chicago residents in December 2020, kickstarting a more sustainable pace for economic recovery across the metro. Now, with over 3.3 million Illinoisans fully vaccinated, residents are confidently returning to a lot of the economic activities they did not have access to over the past year. The opportunities presented have been advantageous to Chicago’s job market, which included local employers reinstating 24,000 jobs in the first two months of 2021. In the metro apartment market, renter mobility reset fundamentals. During the first two weeks of April 2021, 90.5% of renters made their rent payments, outpacing the state average of 89.6%. Metro landlords were primarily challenged with transitioning renters in need of more space to better accommodate remote learning and work environments. However, average effective rent appreciated 0.2% since December 2020 to $1,439 per month in the first quarter of 2021. During this same time, the metro’s average occupancy rate settled to 94.2%, largely stabilized by accelerated leasing activity in Chicago’s Northern and Western suburbs.

Supply growth, slower demand upended rentals in city core. As businesses closed or sent employees to work from home during the pandemic, many households sought less costly or larger living quarters that could accommodate remote activities. These factors reduced rental demand in the urban core, especially in the Streeterville-River North and the Loop areas. These submarkets each received more than 2,000 new units in 2020. Coupled with lower demand, vacancy soared 390 and 420 basis points to metro highs of 9.3 percent and 10.3 percent, respectively. This year, a slower delivery pace and widespread vaccinations that allow workers to return to offices should improve rental demand in the urban core.

Many suburban neighborhoods fared better. Employment losses had many renters seeking to lower housing expenses, while the desire for larger apartments drew tenants out of the city and into the suburbs. More affordable rent in the Will County and Merrillville-Portage-Valparaiso submarkets contributed to vacancy tightening in these areas by more than 100 basis points in 2020 to 4.8 and 3.1 percent, respectively. South Cook County claimed the metro’s lowest vacancy rate of 2.8 percent, down 70 basis points annually. The surge in renter demand in these areas produced the metro’s highest rent growth over the year, with each submarket’s average rent climbing more than 4 percent. Strengthening fundamentals in the suburbs and a potential downtown revival should
draw additional investors to apartment assets across Chicagoland.

Forecast supports continued growth:

Job growth is expected to increase by 2.6% in 2021, still 200,000 below the pre-pandemic levels. Delivery of new units of 6,000 will be a five year low, Overall Market Vacancy contracting to 5.3%. Rent pressure will likely see a 1.8% effective rent increase to an average of 1,498 per month in unit rents.

In conclusion can read about specific loan products. 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:   Apartment Loan Interest Rates.

Keep Caffrey & Company in mind when searching for an Illinois 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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