Charlotte Apartment Loans
Loans from $1 Million to $25 Million+

Charlotte Apartment Loan Rates - Rates updated September 25th, 2022

Charlotte Apartment Loan Rates Over $6,000,000 Rates (start as low as) LTV
Apartment 5 Year Fixed Loan Rates 5.37% Up to 80% Get Free Quote
Apartment 7 Year Fixed Loan Rates 5.12% Up to 80% Get Free Quote
Apartment 10 Year Fixed Loan Rates 5.08% Up to 80% Get Free Quote
Charlotte Apartment Loan Rates Under $6,000,000 Rates (start as low as) LTV
Apartment 5 Year Fixed Loan Rates 5.47% Up to 80% Get Free Quote
Apartment 7 Year Fixed Loan Rates 5.22% Up to 80% Get Free Quote
Apartment 10 Year Fixed Loan Rates 5.18% Up to 80% Get Free Quote
Charlotte Apartment Building Charlotte
Apartment Loan

Select Commercial has excellent Charlotte Apartment loan products and options available for owners and purchasers of multifamily properties throughout the city of Charlotte. 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. Charlotte 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 Charlotte NC 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.

Charlotte Apartment Loan Benefits

Charlotte Apartment Loan rates start as low as 5.08% (as of September 25th, 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!"

Apartment Loan Basics

Charlotte Apartment Loan Types We Serve

If you are looking to purchase or refinance a Charlotte apartment building, don't hesitate to contact us. We arrange financing in the city of Charlotte 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


Apartment Loans - Lending Options

Charlotte Apartment Loan Helpful Articles

How 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
Uncomplicated Underwriting
How to Qualify for a Great Rate When Refinancing Your Apartment Building

Recent Closings

Charlotte Vacancy and Rents Charlotte Rent and Sales Trends

2022 Charlotte Apartment Loan Outlook

Queen City Apartments Benefit from Strong Demographics – Apartment Purchasers Target Attractive Returns

Charlotte is a top market for apartment rentals. The area in 2022 will attract many new renters from a surge of people relocating from the Northeast as the State of North Carolina has more relaxed pandemic restrictions and there is an availability of larger apartments. Financial service industry jobs, which boasted a large percentage of work from home employees, are prevalent in the market, ensuring strength in the local employment base. The number of banking related workers in Charlotte grew during the Covid-19 downturn whereas strong traditional banking markets, such as New York, experienced major job losses. Many of these relocated workers are looking to stay in the market, leading to strong economic health. New household growth is expected to reach 2.5 percent in 2022, more than double the national rate. In addition, apartment vacancy is below 4 percent, giving apartment owners strong pricing power when determining monthly rents. Vacancy in Class C apartments is particularly low, and a lack of development for those renters will keep rates on the upswing.

Investors are bullish on the Charlotte market. Investors from other markets, including New York and other Northeast cities, will continue to invest in Charlotte in 2022 as institutions with capital to invest look for destinations to invest. Local NC buyers remain aggressive, though lower cap rates are causing them to consider investing in more distant suburbs. Concord and Gastonia have been top choices, as most investors are higher returns on investment. Cap rates are good as compared to other high-growth markets, with yields close to 5% entering 2022. Class A properties sell at a premium as much as 1% below that yield, while Class C apartment properties often sell at first year returns in the high-5% range. The difference between Class C and Class B returns tightened during 2021, due to the anticipated increase in expected revenues. With strong rent growth anticipated in 2022, apartment investment in this market will remain strong this year.

2022 Apartment Market Forecast and Charlotte Apartment Loan Economics

Charlotte has a National Multifamily Index of 13. Relocation is causing new household formation and a strong demand for apartment units create a high national rank for Charlotte.

Employment in Charlotte is up 2.8% this year. Employment grows by 35,000 this year as employers increase their level of hiring from 2021’s level of 2%.

New construction adds 9,000 apartment units. New construction eases slightly although inventory growth remains strong. In 2022, local apartment levels rise 4.3%, following a 6.2% increase in 2021.

Vacancy rates are down 10 basis points. Almost 9,000 units will be added in Charlotte in 2022, dropping the average vacancy rate to 3.5 percent. In 2021, vacancy dropped 80 basis points.

Apartment rents are up 5.4%. Following a strong 15.9% increase in the average effective rent in 2021, rent growth is projected to remain strong. By year-end 2022, the average monthly rate will reach $1,466.

Invest in Charlotte apartments remains strong. Good investment returns in one of the fastest-growing cities in the US will continue to generate investment.

Charlotte 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 Charlotte apartment loan rate increases will affect market activity in 2022.

All data provided by Marcus and Millichap

2021 Charlotte Apartment Market and Trends

In the spring of 2021, rents in Charlotte went up for the ninth consecutive month. Through March of 2021, the average rent rose 0.3% on a trailing three-month basis. While this growth was pretty much equal to national rate, Charlotte’s average rent of just over $1,250 lagged significantly behind the national average which came in at just over $1,400. On a 12 month basis, rents in Charlotte were up over 2.5% in March of 2021. There are multiple factors suggesting further rent growth in Charlotte through 2021. The city has a high quality of life and comes with a more affordable lifestyle than many other metros. This has sustained migration the past year and should continue to spur rent growth. Over the past year, rental rates have come down the most in some of the most expensive Charlotte markets. For example, Uptown decreased 6.9% to just over $1,800 a month and Myers Park fell almost 6.5% to $1,623. The unemployment rate in Charlotte dipped to 5.5% in February 2021. Given that this number peaked at 13.2% in May, the unemployment rate improved drastically through the end of 2020 and beginning of 2021. Experts anticipate this positive trend to continue through the rest of 2021.

In terms of expected trends for the rest of 2021, experts anticipate that 30,000 jobs will be added to the Charlotte market through the rest of the year. This is an increase of 2.5%. Additionally, 10,200 units are slated to be completed this year which should add a significant amount of new multifamily inventory to the Charlotte market. Lastly, vacancy is expected to rise 10 basis points and rents are expected to go up to $1,236, an increase of 3.1% in effective rent.

2021 Multifamily Outlook

  • Employment in the US is expected to show a 4.6% year over year increase with the creation of 6.5 million new jobs in 2021 which represents the largest annual increase in over three decades.  This is the result of businesses emerging from the Covid-19 pandemic.  Unfortunately, the US lost close to 9.4 million jobs during the pandemic.
  • Strong demand for apartments, as a result of increased employment rates, is expected to push national vacancy rates down to 3.9%, down from 4.4% in 2021.
  • Construction of new apartments in 2021 are expected to top 385,000 new units, an increase of 2.1% over last year’s record pace.  Rising labor and construction costs are starting to have an effect on new construction, however.
  • Following rent declines during the pandemic, average rental rates are expected to rise 6.8% in 2021 to $1,507 per month.  Landlords are able to raise rents dramatically due to decreased vacancy rates and the strong demand got rental housing.
  • 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

    Charlotte Economic Trends Charlotte Economic Trends

    Expanding Companies Underpin Rental Demand; Tight Class C Vacancy Delivers Steady Cash Flow

    Young professionals heighten demand for apartments. Charlotte is the second largest banking center in the nation and is also a rapidly expanding tech hub. The two combined provide well-paying jobs and in turn attract a number of millennials who often rent Class A multifamily units. Over the past several years, the metro ranked among the highest in the nation in terms of the percentage increase for people between 20 to 34 years old, the prime renter cohort. The large pool of skilled workers is drawing new companies, while others expand. Honeywell and Truist Financial are among the latest firms to move their headquarters to the Queen City, while an expansion at Microsoft and Lowe’s new technology center will bolster the need for tech workers. Sustained employment gains are contributing to robust household growth, generating the need for apartments. As a result, multifamily construction is flourishing, with more than 35,000 apartment units delivered in the past five years, yet vacancy has hovered near the replacement level over this period, boosting rent. Charlotte is definitely a place for investors to look for apartment loans for their next purchase.

    New inventory, robust demand drivers motivate investors. The surge in apartment rental supply is drawing a wider range of buyers to the metro and many are coming in search of more attractive price points and yields than are available in their home markets. Newer multifamily buildings throughout the metro with more than 200 units will typically trade above $150,000 per unit at cap rates in the high-4 to low-5 percent bracket, up to 100 basis points above large primary markets. Investors interested in steady cash flows are focusing on Class C assets, which post the tightest vacancy and largest apartment rent gains among the classes. Vacancy in this tier is especially tight from Uptown heading north to Interstate 485, which is producing substantial rent gains. Multifamily investors are also active in Fort Mill and Rock Hill, drawn by strong population growth. In these locales Class A properties with more than 250 units will change hands above $135,000 per door, while assets completed before 2000 traded at an average of $60,000 per unit in the first three quarters of 2019. For all these reasons, Charlotte is a great place for investors to take out multifamily loans to acquire multifamily properties.

    2020 Charlotte Apartment Market Forecast

    Charlotte Completions vs. Absorption Charlotte Completions vs. Absorption

    The Charlotte National Multifamily Index Rank is at 21, up 5 places. Fewer deliveries and average yields above that of the nation slide Charlotte into 21st place in the 2020 Index.

    Employment in Charlotte is up 2.3%. Employers add 28,000 workers to payrolls in 2020, slightly down from a 2.5 percent hike last year.

    Construction of apartment units in Charlotte is expected to exceed 7,000 units. Completions decline from last year’s 9,000 units and fall below the trailing five-year average.

    Vacancy in Charlotte is up 50 bps. Inventory additions outpace renter demand, moving the vacancy rate up to 5.2 percent at the end of 2020. Last year the rate contracted 40 basis points.

    Apartment rent in Charlotte is up 3.6%. The hike in vacancy will suppress rent gains. The average effective rent advances to $1,206 per month in 2020, down from a 5.9 percent surge last year.

    Charlotte remains a strong option for apartment investments. A proposed light rail extension into Pineville and Ballantyne will direct more investors to consider apartment assets along the planned route. Charlotte is a great place for investors to look for apartment loans to finance their next multifamily property.

    Data provided by Marcus & Millichap.

    Charlotte Vacancy and Rents Charlotte Vacancy and Rents

    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.

    Charlotte Apartment Loan Options

    Charlotte Freddie Mac Apartment loans

    Charlotte 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.

    Freddie Mac Loan and Rate Information

    Charlotte Fannie Mae Apartment loans

    The Charlotte Fannie Mae multifamily loan platform is one the leading sources of capital for Charlotte 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).

    Fannie Mae Loan and Rate Information

    Charlotte 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.

    Learn More About FHA HUD Multifamily Loans

    Charlotte 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:

    • Charlotte 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.

    Charlotte Apartment Building Loans

    Select Commercial provides Apartment Loans and multifamily loans throughout Charlotte, North Carolina including, but not limited to, the areas below.

    Myers Park • Ballantyne West • Autumnwood • Highland Creek • Quail Hollow • Cotswold • Fourth Ward • Davis Lake / Eastfield • Tryon Hills • City Center • Mountain Island • University City North • Carmel • Toddville Road • East Forest • Dilworth • First Ward • Newell • Closeburn / Glenkirk • Oakhurst