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

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

Columbus 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
Columbus 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
Columbus Apartment Building Columbus
Apartment Loan

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

Columbus Apartment Loan Benefits

Columbus 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

Columbus 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

Columbus 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

Columbus Vacancy and Rents Columbus Rent and Sales Trends

2022 Columbus Apartment Loan Outlook

Fundamentals For Continued Economic Growth Exist, Rental Demand is Strong, and Buyers are Active

Increasing rental activity and promises of high-paying job growth create positive demand. The return to campus by students at Ohio State University has helped the apartment market in Columbus. During the third quarter of 2021, 3,500 rentals were added to the market, including more than 1,000 in Downtown Columbus-University District. This increased rental activity and strong suburban demand during the Coronavirus pandemic lowered market vacancy to around 3%. With apartment availability at a record low entering 2022, builders are expected to finish more than 3,000 new apartment units for a 10th straight year. Upcoming additions are divided in several neighborhoods adjacent to either Downtown Columbus or Ohio State University. In a good sign for builders, the number of professional services and financial-related jobs is expected to grow in 2022. Employers including Square, the Original Bark Co., Upstart and NetJets have all indicated that they will be adding new jobs in the market. Nationwide, Cardinal Health and other locally based Fortune 500 companies are also expected to increase staffing as the local and nationwide economic recovery continues. This rate of job growth will create a historically high rate of household formation and demand for new apartment units.

Investors look for large-scale suburban apartment properties. Columbus provides purchasers more opportunities to buy larger apartment properties than other Ohio cities, thereby creating a larger number of buyers. The city’s historically low Class B and C vacancy rates at the beginning of 2022 are set to generate further investor interest. National investors and local buyers with a preference for 100-unit-plus apartment properties are most active in suburban areas east of Interstate 71 and locations near Westerville Road. Despite six straight years of double-digit price increases, sales prices for Class C properties in these locations still remain below $100,000 per door. Additionally, sales prices for Class B apartments run from $150,000 to the low-$200,000 range per unit, dependent on property age.

2022 Apartment Market Forecast and Columbus Apartment Loan Economics

Columbus has a National Multifamily Index rank of 29. Columbus has the highest ranking among Ohio cities but falls in the bottom half of the rankings due to weak job growth.

Employment is up 1.6%. Job growth nearly matches the rate seen in 2021 as 18,000 new positions are added in 2022.

New construction expected to add 3,600 apartment units. Builders expand the number of rental units by 1.9% in 2022, the smallest increase in the past five years. Additions in the city of Columbus account for 60 percent of the activity in 2022.

Apartment vacancy rates are down 10 basis points. Strong suburban demand and the return of pre-Covid economic activity in the central business district support a third consecutive year of lower vacancy rates, lowering vacancy rates to 3.2%.

Apartment rental rates are up 4%. The average effective rent grows at a more manageable rate in 2022 after 2021’s 10% pace. Columbus’ mean monthly apartment rental rate of $1,175 ranks highest among major Ohio cities.

Investment in Columbus apartments is strong. Inventory growth of 25 percent over the past 10 years provides buyers with opportunities to purchase newer built apartment properties in the central business district, Westerville-New Albany-Delaware and Dublin-Hilliard.

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

All data provided by Marcus and Millichap

2021 Columbus Apartment Market and Trends

In spite of COVID-19, the Columbus multifamily market remained on the rise in 2020. As the national rental figure was declining, rents in Columbus actually remained positive. One great way to look at the Columbus market is to compare it to the national averages on a trailing 3 basis. On a T-3 basis through February, rental rates in Columbus rose 0.3% to $1,037, while the U.S. average was up only 0.1% to $1,399. The Columbus market lost about 70,500 jobs last year. This was a decline of 7.2% year-over-year. The number of unemployed people in Columbus hit 145,561 last April. This was the first time in over 10 years that this number reached over 100,000. However, initial 2021 data shows that by the end of last year, about 95,000 people had returned to work. There were about 4,200 new multifamily units that were delivered to the Columbus market in 2020. This was a staggering 25% more than were delivered in 2019. Developers were also working on almost 7,500 units across the metro as of February, equal to 4.2% of existing stock.

Employment in Columbus in 2021 is on the rise after the COVID-19 pandemic. The employment rate is expected to rise 2.8% in 2021. This should add about 29,100 jobs to the Columbus market. Construction is expected to increase 2.6% in 2021. Experts anticipate about 4,800 new units to be delivered to the Columbus market in 2021. With the increase in deliveries, vacancy is expected to rise as well in 2021. He vacancy rate is expected to go up to 4.4%. This is in increase of 30 basis points. Additionally, the average effective rent in 2021 is set to rise to $1,062. This is an increase 3.5% in 2021.

- Data provided by Marcus and Millichap

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

    Columbus Economic Trends Columbus Economic Trends

    Hiring in Medical and Government Industries Spurs Housing Growth Throughout the Urban Core

    Leasing follows large influx of apartment construction in urban core. Increased hiring by the healthcare services industry and government sector will help expand household formation in Columbus this year. The central business district continues to be the epicenter of multifamily housing formation due to the expansion of offices and medical center demand. Economic growth in this area has motivated developers to construct apartments in the city as more employees move closer to the urban core for work. Approximately 3,100 apartments will be constructed in 2020, with 1,200 units of the inventory being delivered near the city center. Just north of the central business district, multifamily builders have broken ground on Columbus’ $300 million professional soccer stadium to be delivered in 2021, adding to the already-flourishing Downtown/University area. Additionally, new mixed-use space is to be developed here, including the six-story Xander on State, which will total 222 units. This project will include 15,000 square feet of commercial space, attracting multifamily residents that want to be near a wealth of shopping, food and hometown events. Inflow of supply will minimally expand vacancy downtown; however, demand for apartment housing near these amenities will continue to trigger stable rent gains this year. Investors should look into apartment loans to finance their next purchase in Columbus.

    Multifamily investors seek value-add assets in arts district and east of downtown. Apartment listings slightly north of the city will continue to attract local buyers seeking aged inventory in the metro. In addition to quick access to employers downtown and other nearby employment hubs, this area has a unique retail presence that integrates shopping with local community events. Class C apartment vacancy in this area has reached below the 3 percent mark, confirming the location’s value to renters. Multifamily assets here are changing hands above the metro’s average price per unit of $72,000, producing average returns approximately 200 basis points below the metro’s average cap rate of 7 percent. Columbus is a solid market for investors to obtain multifamily loans to purchase their next property.

    2020 Columbus Apartment Market Forecast

    Columbus Completions vs. Absorption Columbus Completions vs. Absorption

    Columbus National Multifamily Index Rank is at 26, down 3 places. Curtailing employment amid a rise in completions lowers the Columbus ranking in the 2020 Index.

    Employment in Columbus is up 0.9%. Hiring will slow slightly from last year’s 11,500 employment gain as firms add 10,500 works to the metro.

    Construction of new apartment units in Columbus is expected to exceed 3,100 units. Construction will pick up minimally this year as completions rise over 3,000. Last year, 2,800 apartments were finalized.

    Vacancy in Columbus is down 10 bps. This year’s rental demand will outpace supply growth. Increased demand will result in vacancy contracting to 4.1 percent.

    Rent in Columbus is up 4.0%. Robust leasing momentum will lift the average effective rent to $1,025 per month, building on a 4.6 percent rent boost last year.

    Investment in Columbus remains strong for investors looking to finance their purchases with multifamily loans. An attractive yield profile and strong tenant demand among middle-income renters bring investors to areas east of Columbus where initial returns are in the mid-8 percent area. We definitely recommend interested investors to purchase property in Columbus with an apartment loan.

    Data provided by Marcus & Millichap.

    Columbus Vacancy and Rents Columbus 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.

    Columbus Apartment Loan Options

    Columbus Freddie Mac Apartment loans

    Columbus 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


    Columbus Fannie Mae Apartment loans

    The Columbus Fannie Mae multifamily loan platform is one the leading sources of capital for Columbus 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


    Columbus 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

    Columbus 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:

    • Columbus 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.

    Columbus Apartment Building Loans

    Select Commercial provides Apartment Loans and multifamily loans throughout Columbus, Ohio including, but not limited to, the areas below.


    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.