Cincinnati Apartment Building Loans

At Select Commercial, our primary expertise in is in apartment/multifamily financing. We're dedicated to providing the most competitive rates and tailored solutions for multifamily investments in the area. However, if you're also exploring broader commercial real estate opportunities in other areas of Ohio, our state-specific commercial mortgage page offers a wealth of information and resources. For those seeking comprehensive rates on all loan products available across the 48 states, our comprehensive commercial mortgage rate page offers competitive rates for loans starting at $1,500,000.

Cincinnati Multifamily Loan Rates - updated 03/29/24

Multifamily Loan > $6Million Get Free Quote
Loan Type Rate* LTV
Multifamily 5 Yr Fixed 5.42% Up to 80%
Multifamily 7 Yr Fixed 5.38% Up to 80%
Multifamily 10 Yr Fixed 5.37% Up to 80%
Multifamily Loan < $6Million Get Free Quote
Loan Type Rate* LTV
Multifamily 5 Yr Fixed 5.88% Up to 80%
Multifamily 7 Yr Fixed 5.79% Up to 80%
Multifamily 10 Yr Fixed 5.70% Up to 80%
*Rates start as low as the rates stated here. Your rate, LTV and amortization will be determined by underwriting.

Cincinnati Multifamily Loan Benefits

Cincinnati Apartment Loan rates start as low as 5.37% (as of March 29th, 2024)
• 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

Our Reviews

Latest Expert Insights from Stephen A. Sobin

Stephen A. Sobin, the president of Select Commercial Funding LLC, is a renowned expert in the field of multifamily financing. His insights and perspectives are regularly sought by leading industry publications. Here are his latest contributions that highlight his deep understanding of the multifamily financing landscape and his commitment to providing clear, insightful analysis on key industry issues.

Commercial Spotlight: Mid-Atlantic Region In this four-state powerhouse, smaller metros are thriving.

In a feature in Scotsman Guide, the Mid-Atlantic Region's real estate dynamics are explored, highlighting its resilience and growth amidst the pandemic.

Stephen Sobin of Select Commercial Funding LLC shared insights on the New York market's allure and the challenges buyers face. He noted the shift from primary urban areas to tertiary markets due to evolving preferences and financial conditions. For a deeper dive into Sobin's analysis, read the full article.

What the New Jobs Report Means for CRE

In an article titled "What the New Jobs Report Means for CRE" in Commercial Property Executive, Stephen Sobin shared his perspective on the latest jobs report and its implications for the Commercial Real Estate (CRE) sector. He highlighted the challenges posed by high interest rates and the prevailing uncertainty in the market. Sobin remarked, "Sellers aren’t selling, buyers aren’t buying... Everyone is waiting because no one knows what to expect." For a detailed analysis and more of Sobin's insights, read the full article.

Decoding "Junk Fees" in Rental Housing

In another latest contribution to Multi-Housing News, Sobin provided expert commentary in an article titled "What's Next for Junk Fees? The Industry Weighs In". He clarified the difference between legitimate fees collected for various third-party services and so-called "junk fees". Sobin emphasized the importance of borrowers understanding their rights in negotiating all loan terms and the obligation of lenders to disclose all fees.

Understanding the Impact of Federal Reserve's Decisions

In a recent article titled "How the Fed's Pause on Interest Rates Impacts Multifamily" published by Multi-Housing News, Sobin shared his expert insights on the Federal Reserve's decision to pause interest rate hikes. He accurately predicted that the Fed would not raise rates in June, citing recent bank failures and lingering concerns about a potential recession.

Stay tuned for more expert insights from Stephen A. Sobin on the evolving multifamily financing landscape.

 

Frequently Asked Questions

Is multi-family real estate a good investment in 2023?

Inflation fears, high interest rates, and the prospect of recession have slowed the pace of the commercial real estate market considerably. Some property types are outperforming others. Apartment buildings in desirable neighborhoods are performing well, as owners have been able to raise rents and keep up with rising interest rates. Multifamily properties in smaller and less desirable areas, or areas where unemployment is rising, are not performing as well, as rent increases are harder to implement. In the office sector, only medical office buildings are generating lender interest. General office properties have underperformed the market as a result of the work from home policies established during the Covid-19 pandemic. Office demand is unlikely to return to pre-Covid levels making the office sector extremely hard to navigate right now. In the retail sector, essential service businesses, such as grocery stores and pharmacies, are performing well, while traditional brick and mortar retailers are still feeling the effects of Covid-19 and the competition from online retailers. Many malls are experiencing record high vacancy levels, and some are being repositioned for other purposes. In the industrial sector, we are seeing strong demand for warehouse and distribution space to accommodate the online retailers. Industrial space in urban markets and close to transportation are performing very well. We expect to see sales prices for underperforming properties to drop in 2023 as investors gravitate to better positioned properties.

 

There are many different types of lenders offering a myriad of different loan products to finance the acquisition or refinance of apartment properties nationwide. These lenders include agency lenders (Fannie Mae and Freddie Mac), local and national banks, insurance companies, credit unions and private lenders.

Most lenders write apartment loans for five, seven or ten years (fixed) with a 30 year amortization. It is also possible to obtain loans that are fixed for up to 30 years, although this is not the norm. Rates are typically based on a margin over the corresponding US Treasury rate.

Lenders offer non-recourse to strong borrowers and solid properties. The borrower will be expected to have strong credit, good net worth and liquidity, and experience owning and managing similar properties. The property will be expected to demonstrate solid long term positive cash flow, be in good to excellent condition, and be located in a strong market with low vacancy rates.

Apartment loans are typically screened and pre-approved in 2-3 days. Since lenders require appraisals, environmental and property condition reports, and title, closings will usually take 45-60 days from application.

Recent Banking Failures Likely To Impact Ohio Multifamily Lending

The recent collapse of Silicon Valley Bank and Signature Bank has sent shockwaves through the business and real estate lending sectors. As a leading OH commercial mortgage broker with over 30+ years of experience, Select Commercial knows that the multifamily sector is not immune to these developments. Here's how these banking failures could impact multifamily lending:


Regional Banks Under Pressure

Regional banks, which provide significant liquidity to the apartment sector, are likely to face increased pressure. The collapse of SVB and Signature Bank has raised concerns about the stability of smaller banks. This could lead to a pullback from regional banks providing loans to the multifamily sector, making it more challenging for developers and investors to secure financing.


Development Challenges

Developers could face significant challenges, particularly in securing construction loans and value-add renovation dollars. The current environment is leading to a slowdown in construction lending and a return to traditional underwriting and banker skepticism. This could particularly impact the affordable housing sector, where developers need their financing lined up to secure tax credits.


Volatility in the CMBS Market

CMBS loans have experienced turbulence following the bank failures. This volatility could impact a new crop of lenders that have emerged over the past half-decade, many of which are capital markets-dependent. If the securitization market stabilizes, some of the CMBS and bridge lenders may re-enter the market to fill the liquidity gaps left by regional lenders.


Interest Rate Uncertainty

The bank failures could also contribute to uncertainty around commercial mortgage rates. If these failures lead to a slowdown in rate hikes by the Federal Reserve, this could potentially benefit the commercial real estate market in the long run. However, it's too early to predict the exact impact on apartment transaction volume.


In summary, the recent banking failures have the potential to significantly impact how banks handle multifamily loans. We will closely monitoring these developments to provide the best advice and service to my clients during these uncertain times.

 

Apartment Loan Basics

Apartment Loan Types We Serve

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

Apartment Loan Helpful Articles

How to Get the Best Rate on a Multifamily Loan
How to Buy an Apartment Building
Uncomplicated Underwriting
How to Invest in an Apartment Building
Are You Shopping for an Apartment Building Loan?
How To Get The Best Rates On An Apartment Refinance

Recent Multifamily Loan Closings

Cincinnati Multifamily Loan: Downtown Revival and Northeast Suburban Growth

Apartment supply and demand

Cincinnati's multifamily market is experiencing a surge, especially in the Central Business District (CBD), where renter demand remains robust. In 2022, Cincinnati emerged as a top contender for year-over-year rent growth, largely due to the high demand in its downtown area. The city's downtown was among the least vacant in the nation, driving significant rent increases. As construction in the urban core is set to rise in 2023, rent growth is expected to align more closely with historical trends due to increased housing options and a slowing economy.

Suburban areas, particularly in northeast Cincinnati, are poised to benefit from new corporate investments. The upcoming construction of Honda's EV battery plant in Fayette County is expected to draw renters to the northeast suburbs, including Warren and Butler counties. With fewer than 900 new units planned for these areas, existing properties are likely to see enhanced rent growth.

Mid-tier assets in downtown Cincinnati are offering higher-than-average returns, attracting investors. Despite a slowdown in transactions due to rising interest rates, areas with sustained rent gains, such as Central and North Central Cincinnati, have remained attractive for investment. These submarkets offer cap rates consistently above the metro average, appealing to out-of-state investors seeking higher returns and lower entry costs compared to their home markets.

2023 Cincinnati Multifamily Market Forecast and Market Outlook

Rent trends

Employment is down 0.3%. Cincinnati will lose 3,000 jobs in 2023 after a record low unemployment level in 2022.

New construction will add 4,000 apartment units. The number of new units will be the highest annual total since 2000 and will be twice the trailing five-year average.

Vacancy rates are up 160 basis points. Due to high levels of new construction, vacancy rates will hit 5%, a level similar to the pre-pandemic rate.

Apartment rents are up 3.5%. After a 13% jump in 2022, rent growth hits a more sustainable level in 2023. Average monthly rent will hit $1,340.

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 $1,500,000. Get started with a Free Commercial Mortgage Loan Quote.


Cincinnati Apartment Loans

Select Commercial provides apartment loans throughout Cincinnati, Ohio including, but not limited to, the areas below. We provide apartment loans in most major cities throughout the United States.

Avondale, Betts-longworth, Bond Hill, California, Camp Washington, Carthage, Clifton, College Hill, Columbia Tusculum, Columbia Tusculum (Historic District), Corryville, Cuf, Dayton Street, East End, East Price Hill, East Walnut Hills, East Westwood, Eastwood, English Woods, Evanston, Fay Apartments, Hartwell, Heights, Hyde Park, Kennedy Heights, Laurel Homes, Linwood, Lower Price Hill, Lower Price Hill (Historic District), Madisonville, Millvale, Mount Adams, Mount Airy, Mount Auburn, Mount Lookout, Mount Washington, North Avondale, North Fairmount, Northside, OBryonville, Oakley, Over-the-rhine, Paddock Hills, Pendleton, Pleasant Ridge, Prospect Hill, Queensgate, Race Street, Riverfront, Riverside, Roselawn, Sayler Park, Sedamsville, South Cumminsville, South Fairmount, Walnut Hills, West End, West Price Hill, Westwood, Westwood Town Center, Winton Hills, Winton Place.