Cleveland Apartment Loans
$1,000,000 Minimum

Cleveland Apartment Loan Rates - Rates updated June 23rd, 2021

Cleveland Apartment Loan Rates Over $6,000,000 Rates (start as low as) LTV
Multifamily 5 Year Fixed Loan Rates 2.57% Up to 80% Get Free Quote
Multifamily 7 Year Fixed Loan Rates 2.71% Up to 80% Get Free Quote
Multifamily 10 Year Fixed Loan Rates 2.92% Up to 80% Get Free Quote
Cleveland Apartment Loan Rates Under $6,000,000 Rates (start as low as) LTV
Multifamily 5 Year Fixed Loan Rates 3.17% Up to 80% Get Free Quote
Multifamily 7 Year Fixed Loan Rates 3.18% Up to 80% Get Free Quote
Multifamily 10 Year Fixed Loan Rates 3.19% Up to 80% Get Free Quote
Cleveland Apartment Building Cleveland
Multifamily Loan

Select Commercial has excellent Cleveland multifamily loan products and options available for owners and purchasers of multifamily properties throughout the city of Cleveland. 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. Cleveland 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 Cleveland OH 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.

Cleveland Apartment Loan Benefits

Cleveland Apartment Loan rates start as low as 2.57% (as of June 23rd, 2021)
• No upfront application or processing fees 
• Simplified application process 
• Up to 80% LTV on apartment financing 
• Terms and amortizations up to 30 years 
• Apartment 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!"


Cleveland Apartment Loan Types We Serve

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

  • Large urban high-rise apartment buildings
  • Suburban garden apartment complexes
  • Small apartment buildings containing 5+ units
  • Underlying cooperative apartment building loans
  • Portfolios of small apartment properties and/or single-family rental properties
  • Other multi-family and mixed-use properties

Recent Closings

Cleveland Multifamily Loan Information

Cleveland Economic Trends Cleveland Economic Trends

Luxury Units Outside the Core Begin to Materialize; Interest in Shoreway Rises as Renovation Takes Hold

Luxury multifamily rental demand multiplies outside of urban core. Development continues in the central business district this year with three-fifths of Cleveland’s 1,100 apartment supply being completed here in 2020. While there is demand for luxury multifamily units in the city, renters are also seeking high-end apartments slightly east of the city, where the average effective rent is lower than the central business district’s rate. Developers are also enticing apartment renters to these areas by advancing the retail and entertainment components within new apartment buildings. This year in the town of Richmond Heights, construction will begin the first phase of The Belle Oaks multifamily neighborhood. The full development will be completed in 2022, featuring 790 apartments and approximately 315,000 square feet of retail, including Regal’s 20-screen theater complex. Increased leasing activity in this area has already lowered the submarkets vacancy close to 3.0 percent in 2019. Starting 2020, six out of 10 Cleveland submarkets will start with multifamily vacancy under 3.5 percent. Cleveland is definitely a place for investors to look into taking out an apartment loan to finance their next purchase.

Apartment investors fix eyes near Lake Erie beaches. Cleveland residents continue to flock around the Great Lakes Shoreway as the area rehabilitates with venues for experiential arts, entertainment, and culinary hot spots. As residential demand strengthens here, several buyers are targeting updated multifamily assets predating the mid-1900s as they are highly popular with renters who desire an eclectic residential experience. In 2019, sales picked up along the shore way, doubling the amount recorded a year prior. South of the shoreline, on the eastern side of the city, apartment demand continues to grow due to many of the city’s universities and several large healthcare employers located here. The persistent renter demand appeals to multifamily investors who scour the area for potential trades. Though the availability of Class C apartment assets is limited here, a property positioned strategically will receive competitive bidding, potentially lowering the trades cap rate down to the metro’s overall average of 8 percent range or lower. For all of these reasons, investors would be wise to look into procuring a multifamily loan to finance their next purchase in the Cleveland area.

2020 Cleveland Apartment Market Forecast

Cleveland Completions vs. Absorption Cleveland Completions vs. Absorption

Cleveland National Multifamily Index Rank is at 42, up 1 place. Cap rates remaining well above the national average advance Cleveland in the Index this year.

Employment in Cleveland is up 0.6%. Job creation will slow this year as employers add 6,500 positions. Last year, Cleveland’s employment base grew 0.8 percent.

Construction of new apartment units in Cleveland is expected to exceed 1,100 units. Deliveries will rise by approximately a third. Construction will be prominent in Central Cleveland as renters seek space within the vibrant retail district.

Vacancy in Cleveland is up 10 bps. As units fill, leasing will fall behind this year’s development pipeline, ticking the metro vacancy rate minimally to 4.1 percent. In 2019, a 70-basis-point decline was recorded.

Rent in Cleveland is up 5.5%. This year will post the largest rent increase since 2000 as the average effective rent will lift to $1,000 per month.

Investment in Cleveland remains solid for investors looking to take out multifamily loans. Many buyers flock to east Cleveland, near University Circle and Euclid, as Class C assets can be purchased with first-year returns in the mid-7 percent cap range and higher. Investors should look at obtaining an apartment loan to finance their next purchase in Cleveland.

Data provided by Marcus & Millichap.

Apartment Loan Trends in 2020

Cleveland Vacancy and Rents Cleveland Vacancy and Rents

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.

What Happened with Apartment Loans in 2019

Cleveland Sales Trends Cleveland Sales Trends

The multifamily market ended the 2019 year on a high note. Despite increased levels of new units entering the market, the apartment sector maintained strong and steady growth throughout the year. Vacancy rates throughout the country remained fairly stable, easing investors’ concerns of a significant decline in occupancy due to the high sum of multifamily units delivered. Furthermore, rent growth on the national and metropolitan levels remained healthy throughout the year. While 2019 rent growth was more modest than 2018, it was in line with 2016 and 2017 levels and remained above the national historic average of 3.4%. Based on data provided by the U.S. Census Bureau, multifamily completions increased slightly in 2019 when compared with 2018. The data also show that reported permit growth has increased 3% and starts are up 2%. Although 2019 data is not yet fully complete, these metrics suggest that the supply will remain elevated over the next few years. In terms of multifamily mortgage origination, the most up to date information has surpassed expectations. Mortgage Bankers Association reported that the 2018 mortgage volume came in at about $339 billion, an increase of 18.9% from 2017. While the actual 2019 numbers will not be available until later this year, experts estimate that due to solid fundamentals, low interest rates and heightened demand for multifamily investments, the total origination volume last year was about $369 billion.

The 2019 economy thrived overall. Throughout the year 2.1 million jobs were added which were in line with 2017 number (although it fell short of the 2018 total of 2.7 million). The unemployment rate also continued to decrease in 2019 as it went down 50 basis points to 3.5% at the end of the year. This number matched the lowest unemployment rate in fifty years. The labor market heavily supported increased salaries, as indicated by the 2.8% annual growth in the Employment Cost Index as of September of 2019. While these gains were below the expected amount for a market with such a low unemployment rate they were above the average for the past decade. At the beginning of the year many investors were concerned due to expectations of a recession. There were many indicators that supported this concern such as inverted two and ten year yield curves, an unanticipated rise in the June unemployment rate of ten basis points, an unstable stock market and slowed job growth. However, during the third and fourth quarters of 2019, the economy improved as job growth rose, the unemployment rate fell. This economic improvement has had a clear impact on the multifamily market as more investors are feeling bullish on putting their money into this asset class.

Cleveland Apartment Loan Options

Our company has multiple capital sources for these apartment loans, including: Fannie Mae, Freddie Mac, FHA, national banks, regional and local banks, insurance companies, Wall Street conduit lenders, credit unions and private lenders.


Fannie Mae Loan and Rate Information


Fannie Mae’s multifamily loan platform is one the leading sources of capital for 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).

Freddie Mac Loan and Rate Information

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.

Apartment Lending with Banks and Other Programs

While the agencies (Fannie Mae and Freddie Mac) 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:

  • 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.

Cleveland Apartment Building Loans

Select Commercial provides apartment loans and multifamily loans throughout Cleveland, Ohio including, but not limited to, the areas below.


Downtown, Edgewater, Glenville, Goodrich-Kirkland, Jefferson, Kamms Corner, Lee Miles, Mt Pleasant, North Collinwood, Ohio City-West Side, Old Brooklyn, Puritas Longmead, Saint Claire-Superior, South Broadway, Tremont, University District, West Boulevard.