Denver Apartment Loans
$1,000,000 Minimum

Denver Apartment Loan Rates - Rates updated March 5th, 2021

Denver Apartment Loan Rates Over $6,000,000 Rates (start as low as) LTV
5 Year Fixed Rates 2.68% Up to 80% Get Free Quote
7 Year Fixed Rates 2.78% Up to 80% Get Free Quote
10 Year Fixed Rates 2.94% Up to 80% Get Free Quote
Denver Apartment Loan Rates Under $6,000,000 Rates (start as low as) LTV
5 Year Fixed Rates 3.35% Up to 80% Get Free Quote
7 Year Fixed Rates 3.36% Up to 80% Get Free Quote
10 Year Fixed Rates 3.37% Up to 80% Get Free Quote
Denver Apartment Building Denver
Apartment Loan

Select Commercial has excellent Denver apartment loan products and options available for owners and purchasers of multifamily properties throughout the city of Denver. 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. Denver 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 Denver CO 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.

Denver Apartment Loan Benefits

Denver Apartment loan rates start as low as 2.94% (as of March 5th, 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!"


Denver Apartment Loan Types We Serve

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

Denver Multifamily Loan Information

Denver Economic Trends Denver Economic Trends

Continued Wave of Tech Jobs Keep Builders Active; Colfax Avenue Fosters Bevy of Investment

Firms eager to capitalize on Denver’s tech talent. Bay Area tech companies remain a key driver behind Denver’s apartment market as they relocate to the Mile-High City, creating jobs in the area and capitalizing on local talent. This has brought an influx of high wage jobs to the area from companies such as Amazon and Slack, prompting developers to deliver luxury apartments to the urban core. Downtown Denver and its surrounding neighborhoods will receive more than half of the metro’s new multifamily supply in 2020, highlighted by several 300-plus apartment unit complexes. Despite the wave of upscale apartments, Class A vacancy has dipped to the mid-4 percent range, its lowest level in four years. The Class B and C multifamily segments boast even tighter readings in the low-4 and high-3 percent bands, respectively. Sustained job creation in service-oriented fields and ultra-tight unemployment will remain a boon to workforce housing this year, keeping upward pressure on rent growth for these properties. In the past five years, the Class C average effective rent increased 41 percent, while the Class B measure rose 30 percent. Investors looking at the Denver market would be wise to look for an apartment loan to finance their next purchase.

Buyers stay focused on key thoroughfare. Colfax Avenue remains the common denominator of many apartment deals as the corridor provides investors wide-ranging dynamics to fit various investment criteria. The eastern section in North Aurora provides favorable price points to many multifamily investors with per unit values averaging about $120,000 and cap rates reaching the mid-7 percent realm. Proximity to UC Health keeps apartment rental demand strong in this area as vacancy hovers under 4 percent. Moving west, the Capitol Hill neighborhood is highly targeted due to its adjacency to downtown and relatively affordable price points. Apartment buyers also zero in on North Lakewood, where the recently completed light rail extension has boosted the area’s transit connectivity to downtown, propelling apartment demand throughout the West Colfax corridor. Here, multifamily cap rates generally sit in the mid-5 to upper-5 percent range, in line with the metro average. Denver is a good market for investors to procure a multifamily loan to purchase their next property.

2020 Denver Apartment Market Forecast

Denver Completions vs. Absorption Denver Completions vs. Absorption

The Denver National Multifamily Index Rank is at 20, up 1 place. Reduced deliveries help to tighten vacancy this year, improving Denver’s standing in the Index.

Employment in Denver is up 1.3%. The metro’s 2.6 percent unemployment rate will restrain hiring activity this year as Denver registers its lowest job creation since 2010 with the addition of 19,800 workers to payrolls.

Construction in Denver is expected to exceed 8,800 apartment units. Completions will match the previous five-year average as builders remain focused on the urban core.

Vacancy in Denver is down 10 bps. Building on 60- and 70-basis-point drops during the previous two years, vacancy will contract to 4.4 percent in 2020.

Rent in Denver is up 4.5%. Denver’s average effective rent will climb to $1,625 this year as rent growth exceeds 4 percent for the third year in a row. In 2019, rents expanded by 6.0 percent.

Investment in Denver remains strong for those looking for apartment loans. Yields up to 150 basis points above other tech-heavy metros will continue to entice buyers nationwide, strengthening bidding environments and keeping price appreciation elevated. We advise investors looking in the Denver market to finance their next property with a multifamily loan.

Data provided by Marcus & Millichap.

Apartment Loan Trends in 2020

Denver Vacancy and Rents Denver 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

Denver Sales Trends Denver 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.

Denver 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 Apartment Loan (Small)

Fannie Mae Apartment Loan (Large)

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 Apartment Loan

Freddie Mac is another government agency that provides 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.

Denver Apartment Building Loans

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


Alamo Placita • Five Points • Park Hill • Athmar Park • Fort Logan • Platt Park • Auraria • Gateway • Regis • Baker • Globeville • Rosedale • Barnum • Golden Triangle • Ruby Hill • Barnum West • Goldsmith • Skyland • Bear Valley • Green Valley Ranch • Sloans Lake • Belcaro • Hale • Southmoor Park • Berkeley • Hampden • South Park Hill • Burns Brentwood • Hampden Heights • South Platte • Byers • Hampden South • Speer • Capitol Hill • Harvey Park • Stapleton • Central Business District • Harvey Park South • Sunnyside • Chaffee Park • Highland • Sun Valley • Cheesman Park • Hilltop • Union Station • Cherry Creek • Indian Creek • University • City Park • Jefferson Park • University Hills • City Park West • Kennedy • University Park • Civic Center • Lincoln Park • Valverde • Clayton • LoDo • VillaPark • Cole • Lowry • Virginia Village • College View • MarLee • Washington Park • Congress Park • Marston • Washington Park West • Cory-Merrill • Mayfair • Washington-Virginia Vale • Country Club • Montbello • Wellshire • Crestmoor • Montclair • WestColfax • Curtis Park • North Capitol Hill • West Highlands • Denver International Airport • Northeast Park Hill • Westwood • East Colfax • North Park Hill • Whittier • East Highlands • Overland • Windsor • Elyria-Swansea • Parkfield