Atlanta Apartment Loans
Loans from $1 Million to $25 Million+
|Atlanta Apartment Loan Rates Over $6,000,000||Rates (start as low as)||LTV|
|Apartment 5 Year Fixed Loan Rates||4.59%||Up to 80%||Get Free Quote|
|Apartment 7 Year Fixed Loan Rates||4.65%||Up to 80%||Get Free Quote|
|Apartment 10 Year Fixed Loan Rates||4.73%||Up to 80%||Get Free Quote|
|Atlanta Apartment Loan Rates Under $6,000,000||Rates (start as low as)||LTV|
|Apartment 5 Year Fixed Loan Rates||4.72%||Up to 80%||Get Free Quote|
|Apartment 7 Year Fixed Loan Rates||4.78%||Up to 80%||Get Free Quote|
|Apartment 10 Year Fixed Loan Rates||4.86%||Up to 80%||Get Free Quote|
Select Commercial has excellent Atlanta Apartment loan products and options available for owners and purchasers of multifamily properties throughout the city of Atlanta. Whether you are looking to finance a small apartment building, a complex with hundreds of units, or a co-operative, we can help you find the optimal financing solution to meet your Apartment mortgage loan needs. While we lend across the entire continental US, we are able to give our best rates and loan programs to certain areas that we feel are strong markets. Atlanta is one of the cities that we consider to be a premium market and we actively look to originate good quality loans here for our clients. We have a diverse array of many available loan products to help qualified Atlanta GA borrowers looking to purchase or refinance an apartment property. We offer apartment loans with terms and amortizations up to 30 years, recourse and non-recourse, and many options for prepayment. We typically approve Apartment building loans within 1 day and usually close within 45 days of application. Our clients love our simplified application process, 24-hour pre-approvals with no-cost and no-obligation, great rates and terms, fast closings and personalized service. If you are looking to purchase or refinance an apartment building, don't hesitate to contact us. For more information on multifamily loans, check out how to get the best rate on a multifamily loan and how to get the best rates on an apartment refinance.
Atlanta Apartment Loan Benefits
Atlanta Apartment Loan rates start as low as 4.59% (as of June 28th, 2022)
• A commercial mortgage broker with over 30 years of lending experience
• No upfront application or processing fees
• Simplified application process
• Up to 80% LTV on multifamily financing
• Terms and amortizations up to 30 years
• Multifamily loans for purchase and refinance, including cash-out
• 24 hour written pre-approvals with no cost and no obligation
Recent TRUSTPILOT Reviews
Select Commercial Funding Reviews from TRUSTPILOT
A three year journey
"Thanks Stephen for all of your hard work in getting our deal closed! I appreciate your professionalism and patience throughout a complicated process. You always were there for my partner and I whenever we had questions and needed answers quick. It was a pleasure to have worked with you and Select Commercial!"
Atlanta Apartment Loan Types We Serve
If you are looking to purchase or refinance a Atlanta apartment building, don't hesitate to contact us. We arrange financing in the city of Atlanta for the following:
- Large urban high-rise multifamily buildings
- Suburban garden multifamilycomplexes
- Small multifamily buildings containing 5+ units
- Underlying cooperative multifamily building loans
- Portfolios of small multifamily properties and/or single-family rental properties
- Other multi-family and mixed-use properties
Atlanta Apartment Loan Helpful ArticlesHow to Get the Best Rate on a Multifamily Loan
Fannie Mae and Freddie Mac 2022 Update
How To Get The Best Rates On An Apartment Refinance
What Do Underwriters Look for When Evaluating Apartment Loans?
What You Need to Know About Freddie Mac SBL Multifamily Loans
How to Calculate Debt Service Coverage Ratio for Apartment Loans
Apartment Occupancy Levels – Concern in Some Major US Markets
How to Invest in an Apartment Building
Are You Shopping for an Apartment Building Loan?
How to Buy an Apartment Building
What Are Commercial Mortgage Lenders Looking for These Days
How to Qualify for a Great Rate When Refinancing Your Apartment Building
2022 Atlanta Apartment Loan Outlook
After the largest annual absorption of apartments in more than twenty years, the Atlanta market is positioned to record another strong year. Apartment dwellers leased more than 16,000 units for the second year in a row in 2021 as migration into the area and strong job growth generated the creation of new households. The rate of renter demand is expected to lessen from 3.3 percent in 2021 to 2.2 percent in 2022, largely due to the scarcity of available rental apartments. Lower vacancy rates are expected to be strongest in Midtown and Buckhead, which have the highest number of empty apartment units. Professional workers are moving back into the densely populated urban areas following the widespread vaccination rates and the reopening of offices. Many companies are also building new operations in those areas, creating new demand for apartment units. Google, Cisco and Microsoft, among others, are adding thousands of jobs in the Atlanta market this year. Suburban apartment buildings will also see solid performance as out of market workers from the Northeast and West Coast remain in the Atlanta long term. Out of market purchasers are spurring strong buyer demand. A lot of investment capital coming into the Atlanta market is coming from the Northeast, and from California, as these investors seek new markets. The improving profitability and low interest rate financing resulted in double-digit valuation gains in 2021, and high demand will keep pricing high entering 2022. However, the strong increase in asking prices is generating tension between buyers and sellers as some sellers inflate listing prices and buyers entering the Atlanta market underestimate the recent rise in prices. If interest rates remain low, buyers will likely need to increase their offers to accommodate strong investor demand. Despite low vacancy rates in all property types, some value-add deals can be found in the Atlanta market. Renovating class B apartment properties in suburban areas to provide out of market workers more options will be the most frequent target for these investors. Entering 2022, cap rates range from sub-4 percent for core Class A assets to 7 percent for suburban Class C properties. Apartment loan rates are relatively low but have started to climb in response the Federal Reserve’s decision to start raising rates in 2022.
2022 Atlanta Multifamily Forecast and Atlanta Apartment Loan EconomicsAtlanta is one of the top 10 markets in the National Multifamily Index as a result of low vacancy, strong rent growth and growing household formation levels.
Employment is strong as payrolls surpass the pre-recession level in 2022 as companies add 89,000 workers, representing a 3.1 percent increase.
New construction will add inventory in 2022 and this year will match 2021 as 10,500 units come online, lifting inventory by 2.0 percent. Over the past five years, builders have completed approximately 11,000 apartments annually.
Vacancy rates are decreasing as renter demand supports a 20-basis-point decline in apartment vacancy to 3.0 percent this year. In 2021, the average rate declined 120 basis points.
Rental rates are increasing again. Following an 18.4 percent rise last year, the average effective rent is projected to advance 6.7 percent this year to $1,644 per month in 2022.
Investment capital is entering the market for Class A and Class B-plus properties in suburban areas where many professional workers are putting down roots.
Atlanta apartment loan rates will start to increase in 2022 as the Federal Reserve starts raising rates to slow the rate of inflation. We will be watching to see if Atlanta apartment loan rate increases will affect market activity in 2022.
All data provided by Marcus and Millichap
2021 Atlanta Apartment Market and Trends
Atlanta’s multifamily market has demonstrated healthy fundamentals in 2021. Rents, which performed strongly in the second half of 2020, slightly softened in the first quarter of 2021. Through March 2021, rents were up by 0.3% to $1,378. Although the Atlanta market has seen a healthy supply of multifamily additions, the occupancy rate in stabilized properties increased to 94.8%, a rise of 110 basis points in the 12 months ending in February 2021. In the first quarter of 2021, multifamily sales came in at $1.3 billion. The per-unit price rose over 10% to $148,525. Meanwhile, 2,779 units came online and 20,037 were in the development process.
In 2021, balanced job growth is propelling the Atlanta market forward. Atlanta’s 2021 employment outlook has been strengthened by both its position as a distribution center and its growing appeal to technology companies. Atlanta’s trade, transportation and utility sectors have already recovered from losses due to the COVID-19 pandemic. Experts anticipate the retail sector to receive a jolt as stores begin to rehire employees. Further, experts have suggested that distribution hiring will spur more job formation this year in Atlanta. At the same time, white-collar positions have room for above-average growth in 2021 after falling 3.9 percent in 2020 due to the pandemic. In January, Atlanta’s unemployment rate dropped to 5.1%. and Preliminary data for the month of February provided evidence for sustained recovery as that figure has slid further to 4.5%. In the 2020 calendar year, Atlanta’s employment market shrunk by just 3.5%. This heavily outperformed the overall national rate which came in at -6.8%.
- Data provided by Marcus and Millichap
2021 Multifamily Outlook
The COVID-19 pandemic affected the ability of young graduates to find jobs and move into apartments of their own. The demand for apartment rentals is usually fueled by young graduates entering the workforce and moving into rental apartments. Many young adults lived with their parents or friends during the pandemic and into early 2021. As 2021 progressed, many companies reopened their offices and began hiring again which generated record levels of new apartment rentals. This trend should continue through late 2021 as more new workers are able find jobs and move into their own apartments. Many of these new multifamily units are in metro areas of the sunbelt states as workers have been moving out of colder urban areas in favor of more suburban warmer climates.
The tight market in 2021 for new home purchases has caused many would be homebuyers to continue renting. Prices for existing homes have risen due to lack of inventory and the cost of construction has skyrocketed due to increased costs for raw materials. The high cost of purchasing a new or existing home is keeping the demand for rental units very strong in 2021.
During the pandemic, when workers were either out of work or working from home, many people moved out of densely populated urban areas in favor of suburban locations. In 2021, as more employees are returning to their offices, we are seeing demand pick up once again for rental apartments in urban locations. In addition, as more and more retail and dining locations reopen in downtown areas, we expect to see a return of employees to these areas.
During the pandemic, the CDC and local governments instituted a moratorium of evictions. This caused many landlords to suffer economic losses and depressed the value of apartment properties. In 2021, as these moratoriums start to expire, we expect to see strong demand from investors for these properties.
Nationwide, the first half of 2021 saw more than 175,000 new apartments completed and a total of 363,000 for the previous 12 months. A high percentage of these new units were in Texas and other sunbelt states, as more and more people are relocating to warmer climates. Occupancy rates and asking rents have been lower in larger urban markets in the Northeast and other colder climates, while occupancy rates and asking rents have been increasing in these warmer sunbelt climates. These 2021 trends have definitely been driven by the COVID-19 pandemic and we are watching these trends closely to see if these trends persist after the pandemic is over. Check out our low commercial real estate loan rates and use our commercial mortgage calculator to calculate monthly principal and interest.
What Happened with Apartment Loans in 2020
Workforce Housing Within the Perimeter Generating Large Rent Gains, Captivating Yield-Driven Investors
Continuing revitalization keeps Class B/C apartment demand high. Redevelopment projects underway throughout the metro are expanding the construction labor pool, which has grown by the fastest rate amongst job sectors in Atlanta over the past three years. Revitalization efforts are highlighted by the Centennial Yards project downtown, which will convert 50 acres of rail space into 12 million square feet of mixed-use development. A project of this scale will require a large volume of construction workers, many of which will seek apartment housing aligned with their budget. With multifamily rental costs near the site out of reach, they will often look farther west for residences within the Perimeter. Here the average Class C apartment rent is rising at an accelerated pace, and as the unit type is the predominant beneficiary of this demand boost, tightening vacancy will continue to appreciate rent. Metro wide, employment gains in working-class fields are contracting Class B/C multifamily vacancy into the mid-4 percent area as median home costs are rising at a faster pace than the national level, prompting many to choose budget-friendly apartment rentals. Atlanta is a great city for investors to look for apartment loans to finance their multifamily acquisitions.
Out-of-state capital following urban revival patterns. Efforts to rejuvenate transitioning neighborhoods via opportunity zone projects has investors strategically deploying capital for assets with yield-appreciation potential. Suburbs inside of the perimeter near east Interstate 20 receive the largest volume of trading activity, with out-of-state interests concentrating primarily on Class C apartments built pre-1980. Here, these have often carried per multifamily unit entry costs below $70,000 with first year returns in the 5 to 6% range. Additionally, large-scale apartment complexes west of the airport along Interstate 285 are piquing some institutional interest. Multiple 300-plus multifamily unit properties traded over the recent months for prices between $20 million and $30 million, with average cap rates in the mid-5 percent tranche. Within the core, institutional investors are homing in on luxury assets near the Atlantic Station area, where initial yields have been near 4 percent on average. They are looking for multifamily loans to finance these apartment properties in Atlanta.
2020 Atlanta Apartment Market Forecast
National Multifamily Index Rank 15, up 3 places. Rent growth above the national average and tightening vacancy move Atlanta up in this year’s Index.
Employment in Atlanta is up 1.7%. Employment gains are comparable to the 1.8 percent advance logged in 2019, with 48,000 roles added this year.
Construction of apartments in Atlanta is expected to exceed 9,800 units. Developers will finalize more rentals than the 9,500 units added in the previous year, yet the 2020 composite falls 300 apartments shy of the trailing-three-year annual average.
Vacancy in Atlanta multifamily is down 20 bps. Net absorption of more than 10,000 units contracts vacancy for the third consecutive year, down to a cyclical low of 4.6 percent.
Atlanta apartment rents are up 5.9 percent. The average effective rent reaches $1,360 monthly as the annual growth margin exceeds 5 percent for the eighth straight year.
Investments in Atlanta apartments are very strong. Capital migration will intensify as out-of-state investors eye value-add assets near opportunity zones. These locales will be more heavily targeted than the core, as lower entry costs allow the potential for greater yield gain. These are the perfect areas for investors to look for apartment and multifamily loans in Atlanta.
Data provided by Marcus & Millichap.
Apartment Loan Trends in 2020
At the start of 2020 the market outlook did not indicate any significant factors that would cause major trouble in the multifamily market. Market indicators suggested that demand for housing, especially for apartment rentals, would remain healthy, thus continuing to generate new construction of multifamily buildings. Both the high number of permits and starts over the past couple of years led experts to believe that developer confidence is very high in the multifamily market. Market experts predicted an annual completion of 340,000 apartment units over 2020, way above the 300,000-annual average for the past five years. Over the last couple of years, the multifamily market has seen absorptions outperform expectations due to both changes in lifestyle and demographic preferences and new supply has consistently taken longer to be built. These two factors have helped the market to perform stronger than expected in the past and should continue throughout this year. Market data indicated that rent growth would remain strong in 2020, growing 3.6% (which is above the historical average). In terms of mortgage origination, low interest rates and strong multifamily performance were expected to help loan volumes grow. Experts predicted that the origination volume in 2020 will increase by 5.7% to $390 billion. Market data indicated that cap rates have more room to decline, which would lead to increasing property values and should drive up origination volume. However, with the current outbreak of Covid-19, the overall economy has been in flux. The stock market has crashed and commercial mortgage interest rates have been severely impacted. Huge metros such as New York have all but shut down much economic activity and entertainment. In this unsteady climate, many investors are scared to purchase commercial real estate and to take out commercial mortgages and apartment loans. Additionally, the oil industry has taken a big hit. Not only are people traveling less due to the pandemic, foreign countries like China and Russia are involved in a huge price war which is driving the price of oil way down. Experts are hopeful that as the weather warms up and public health policy learns how to handle this pandemic, the economy should revert back to its pre-virus strength.
Atlanta Apartment Loan Options
Atlanta Freddie Mac Apartment loans
Atlanta Freddie Mac Multifamily Loans provide mortgage capital in the secondary market for apartment building loans. Together, Fannie Mae and Freddie Mac control a very large portion of the multifamily loan market. Freddie Mac has a very aggressive program for small balance apartment loans (from $1,000,000 to $7,500,000). Some features of this program include:
- Market size driven. Freddie Mac classifies loans by the size of the overall market: Top, Standard, Small, and Very Small. Rates are best in top market locations (major metropolitan areas).
- Capped costs. Freddie Mac lenders often cap the closing costs at a fixed dollar amount, thereby lowering the overall cost to borrow money.
- Flexible pre-pay penalties. Freddie Mac offers many options for pre-payment penalties, from yield maintenance to step-down to “soft” step-down.
- Interest-Only (I/O) loans. Freddie Mac will allow payments consisting of only interest and no amortization of principal.
- Fixed rate terms. Freddie Mac offers fixed rates of 5, 7, and 10 years, followed by an adjustable period. These loans are called Hybrid/Adjustables. Loans have a 20 year term and a 30 year amortization schedule.
Atlanta Fannie Mae Apartment loans
The Atlanta Fannie Mae multifamily loan platform is one the leading sources of capital for Atlanta apartment building loans in the US. Fannie Mae is a leader in the secondary market – meaning they purchase qualifying apartment loans from leading lenders who originate these loans for their borrowers. Fannie Mae purchases loans secured by conventional apartments, affordable housing properties, underlying cooperative apartment loans, senior housing, student housing, manufactured housing communities and mobile home parks on a nationwide basis. The Fannie Mae platform has many benefits, including:
- Long term fixed rates and amortizations. Fannie Mae allows terms and amortizations of up to 30 years. Most banks offer only 5 or 10 year fixed rates and 25 year amortizations.
- Non-recourse options. Most banks will require the borrower to sign personally for the loan. Fannie Mae offers non-recourse apartment loans.
- Lending in smaller markets. Many national lenders do not like to lend in rural or tertiary markets. Fannie Mae is a good option for these loans.
- Assumability and Supplemental Financing. Fannie Mae allows their loans to be assumed by a qualified borrower. They also have a program which allows borrowers the ability to come back and borrow additional funds during the life of the loan (subordinate financing).
Atlanta FHA HUD Multifamily Loans
HUD (Department of Housing and Urban Development) and FHA (Federal Housing Administration) insured multifamily loans are some of the best financing options for real estate investors and developers. While HUD does not directly make these loans, they do insure multifamily loans made by third party lenders to real estate investors. The third party lender will process the loan in accordance with the FHA HUD guidelines and HUD will underwrite the loan in order to provide the insurance. There are two primary types of HUD insured loans that multifamily investors can take advantage of.
Atlanta Apartment Lending with Banks and Other Programs
While the agencies (Fannie Mae, Freddie Mac and HUD) offer some excellent programs, not every apartment loan applicant qualifies for these programs. We have many excellent choices for these loans with our correspondent banks, credit unions, insurance companies and private lenders. Some examples of these loans include:
- Atlanta Multifamily loans that require flexible underwriting or those that don’t meet standardized criteria.
- Properties in less than desirable markets, or those that require repairs or updating.
- Properties that don’t cash flow according to industry guidelines or lack stabilized cash flow.
- Borrowers with past credit issues, including foreclosures, short sales, or judgements.
- Borrowers who are not US citizens.
Whether you are purchasing or refinancing, we have the right solutions available for your multifamily mortgage loans. We will entertain apartment loan requests of all sizes, beginning at $1,000,000. Get started with a Free Commercial Mortgage Loan Quote.
Atlanta Apartment Building Loans
Ansley Park, Atkins Park, Atlantic Station, Berkeley Park, Blandtown, Cabbagetown, Candler Park, Castleberry Hill, Centennial Hill district, Druid Hills, East Atlanta, East Lake, Eastern Home Park, Edgewood, Fairlie-Poplar district, Five Points district, Georgia Tech and Technology Square, Grant Park, Home Park, Hotel District, Inman Park, Kirkwood, Knight Park/Howell Station, Lake Claire, Lindridge‑Martin Manor, Loring Heights, Luckie Marietta district, Marietta Street Artery, Morningside‑Lenox Park, Oakland, Old Fourth Ward, Ormewood Park, Peachtree Center, Peachtree Street, Piedmont Heights, Poncey-Highland, Reynoldstown, Sherwood Forest, SoNo, South Downtown, Summerhill, Sweet Auburn, Virginia-Highland, Western Home Park.