Columbus 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.

Columbus Multifamily Loan Rates - updated 04/19/24

Multifamily Loan > $6Million Get Free Quote
Loan Type Rate* LTV
Multifamily 5 Yr Fixed 5.96% Up to 80%
Multifamily 7 Yr Fixed 5.91% Up to 80%
Multifamily 10 Yr Fixed 5.88% Up to 80%
Multifamily Loan < $6Million Get Free Quote
Loan Type Rate* LTV
Multifamily 5 Yr Fixed 6.22% Up to 80%
Multifamily 7 Yr Fixed 6.12% Up to 80%
Multifamily 10 Yr Fixed 6.11% Up to 80%
*Rates start as low as the rates stated here. Your rate, LTV and amortization will be determined by underwriting.

Columbus Multifamily Loan Benefits

Columbus Apartment Loan rates start as low as 5.88% (as of April 19th, 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.

Persistent Inflation and Its Effects on CRE

In an article featured in Multi-Housing News, Stephen Sobin highlighted that while inflation is still a challenge for the Federal Reserve, there are many positive signs for the commercial real estate industry. The headline Consumer Price Index rose 3.2 percent for the year ended Feb. 29, a figure 20 basis points lower than the Dec. 31, 2023, rate. read the full article.

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 Columbus apartment building, don't hesitate to contact us. We arrange financing in the city of Columbus 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

Columbus Multifamily Loan: Intel's Expansion and the Rising Tech Influence

Apartment supply and demand

Columbus is poised for significant population growth, ranking second among major Midwest markets in 2023. This growth is largely driven by Intel's construction of semiconductor plants and Amgen's new biomanufacturing plant in New Albany. The influx of workers at these sites is expected to boost demand for local rentals, particularly in the Westerville-New Albany-Delaware submarket. Despite a previously minimal multifamily pipeline, this increased demand may spur development in the area.

Additionally, the west side of Columbus is gaining traction as a desirable residential area, thanks to Hyperion's plans to build a hydrogen-electric manufacturing facility, further cementing Columbus's status as a Midwest tech hub. However, a potential economic downturn may lead to higher overall metro vacancy rates and moderate rent increases in the short term.

Long-term corporate growth is attracting more rental investors to Columbus. Out-of-state investors have been actively expanding their Columbus apartment portfolios, a trend likely to continue as the city's tech sector grows. Areas like Dublin and New Albany are expected to see job growth, while private capital may target Upper Arlington for its strong Class C fundamentals and proximity to Ohio State University. Despite rising interest rates posing challenges, the market fundamentals are expected to realign with pre-pandemic norms.

2023 Columbus Multifamily Market Forecast and Market Outlook

Rent trends

Employment is up 0.8%. Columbus will add 10,000 new jobs in 2023, one of the most actively growing labor markets in the country.

New construction will add almost 16,000 apartment units. The growth rate should reach a record 7.4%. North Columbus and UNC Columbus are expected to gain the majority of the new units.

Vacancy rates will jump 310 basis points. The number of new units coming to market will outpace renter demand and vacancies are expected to climb to 8.8%, the highest rate in two decades.

Apartment rents are up 3.3%. Last year, rents grew by over 13%. Rent growth will slow considerably in 2023 and the average monthly rent is expected to reach $1,684.

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.


Columbus Apartment Loans

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

Arena District, Brewery District, Cassady, Clintonville, Discovery District, Downtown, Eastland, Edgewood, Fifth by Northwest, Franklinton, German Village, Grandview Heights, Greater Hilltop, Harrison West, Holtzman-Main, Hungarian Village, Innis Gardens, Italian Village, King-Lincoln Bronzeville, Lincoln Park, Market Exchange District, Merion Village, Mile on High, Millbrook, Milo-Grogan, Near East, Near South, North Central, North East, North Linden, Northland, Northwest, Old Oaks, Olde Towne East, Reeb-Hosack, RiverSouth District, Schumacher Place, Short North, South Alum Creek, South Linden, Southside, Southwest, University District, Untitled Polygon, Uptown District, Victorian Village, Walnut Ridge, Warehouse District, Weinland Park, West Olentangy, West Scioto, Woodland Park.