Apartment Loan

Submit your loan application for a Free Quote

Apply Now

Loans for Apartments:

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 commercial and multifamily properties.  Caffrey & Company LLC has a special focus in providing a Raleigh apartment loan.  The most attractive, non-recourse loan 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 $5 million leverage up to 83% to 85% is available) you are at the right place.

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 a Raleigh apartment loan.  Therefore, this will help to achieve the best pricing and loan terms for your 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 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 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.

Market data for Raleigh Durham markets:

The Pandemic reversed the strong job growth the Raleigh Durham and Chapel Hill enjoyed.  The good news is the area has witnessed 59,000 jobs coming back on line since the major layoffs in April 2020.  These jobs helped the market absorb 3,000 units driving down vacancy below the five year average. The metro has a record number of newly constructed apartment units coming on line.  Over 1,300 new units are slated to come on line soon.  Another 8,000 jobs were added from June to September which will help keep the multifamily rental market strong.   Overall, unemployment is rebounding nicely at 5.2 percent.  This is well below the national average as of yearend 2020.

Who are the buyers of Multifamily properties in Raleigh Durham market:

Out of State Investors find the highly educated workforce and continued net migration of population reasons to accept capitalization rates in the low 5’s for Class A multifamily properties.  Class B properties are attracting East Coast investors looking for 100 plus unit size properties.

By the numbers Raleigh Durham markets:

Unemployment is bouncing back to 5.2% from the mid teens in 2020 after the Pandemic started.  Apartment Developers delivered 5,100 units as of the end of September 2020. This is after adding 5,400 units in the preceding 12 months.  These new apartment unit additions to the market represented a 6.6% increase in supply.  A total of 1,700 units are under construction with delivery expected in the late Spring of 2021.

From July to September the metro reported positive absorption dropping market vacancy for Class A and C units by one full percentage point.  The overall apartment market vacancy declined by 90 basis points.  Area overall vacancy is 4.7% which shows a strong comeback from the first half of 2020.

Notwithstanding the Pandemic the area witnessed a 1.4% increase in average rents to $1,180 per month.  One the sales side average unit prices rose to $164,400 for Class A and B multifamily assets.  With a number of higher class properties trading last year lowered the average capitalization rates to 5 percent.  In 2020 the area had over $40 million in multifamily property trades since the Pandemic started.

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 a North Carolina lender for apartment loans. Have a question please call:  Mike Caffrey (913) 402-7077 or email: Mi[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]