Fort Lauderdale Multifamily Loans in 2024
At Select Commercial, we specialize in Fort Lauderdale apartment building loan financing. Our team is dedicated to offering the most competitive rates and tailored solutions for multifamily investments in the area. If you're interested in a multifamily loan outside of Fort Lauderdale, be sure to check out our Florida multifamily loans page. For comprehensive rates on all loan products available across the 48 states, visit our commercial mortgage rate page, where we offer competitive rates for loans starting at $1,500,000. Explore our insights on the 2025 Fort Lauderdale multifamily loan market.
Fort Lauderdale Multifamily Loan Rates - updated 12/21/24
| Multifamily Loan > $6Million | Get Free Quote | ||
|---|---|---|---|
| Loan Type | Rate* | LTV | |
| Multifamily 5 Yr Fixed | 5.36% | Up to 80% | |
| Multifamily 7 Yr Fixed | 5.36% | Up to 80% | |
| Multifamily 10 Yr Fixed | 5.34% | Up to 80% | |
| Multifamily Loan < $6Million | Get Free Quote | ||
| Loan Type | Rate* | LTV | |
| Multifamily 5 Yr Fixed | 5.80% | Up to 80% | |
| Multifamily 7 Yr Fixed | 5.74% | Up to 80% | |
| Multifamily 10 Yr Fixed | 5.73% | Up to 80% | |
Fort Lauderdale Multifamily Loan Benefits
Fort Lauderdale Apartment Loan rates start as low as 5.36% (as of December 21st, 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
2025 Fort Lauderdale Multifamily Loan Market Overview
As the Federal Reserve initiated rate hikes in 2022, the apartment and Fort Lauderdale multifamily loan markets transitioned from rapid growth to a more restrained environment. By late 2024, signs of stabilization emerged; however, the outlook for 2025 remains cautious. Select Commercial Funding continues to monitor conditions closely, especially as higher Treasury yields and tightening financial conditions shape the landscape for apartment and Fort Lauderdale multifamily loans.
Sales Market Recovery with Caution
Following a prolonged decline in sales volume and values, the apartment sales market has shown signs of thawing, though challenges persist. The Federal Reserve's September 2024 rate cut initially sparked renewed activity; however, the 10-year Treasury yield has risen to 4.469% as of November 5, 2024, adding uncertainty. While some sellers are accepting price adjustments from 2021 highs, higher borrowing costs could temper momentum. We are carefully evaluating Fort Lauderdale multifamily loan opportunities as these dynamics evolve.
Debt Financing and Access to Capital
Improved financing conditions in mid-2024 allowed for a slight easing in apartment financing, as reflected in NMHC's survey where respondents reported better availability of debt options. However, with the 10-year Treasury yield climbing, access to affordable financing remains a concern. We offer a range of multifamily loan products and Fort Lauderdale apartment loans, helping clients navigate these complexities amid fluctuating debt markets.
Apartment Demand in a Shifting Labor Market
Apartment demand continues to benefit from a stable labor market, though recent economic indicators highlight potential headwinds. The ongoing retirement of Baby Boomers has created opportunities for younger generations, but elevated borrowing costs may constrain affordability. Despite these challenges, Select Commercial Funding has observed steady interest in Fort Lauderdale apartment loans and multifamily loan options, reflecting the need for housing solutions that adapt to changing labor and economic conditions.
Absorption Rates and Occupancy Projections
High demand for apartment units has driven strong absorption rates in 2024, and while forecasts suggest continued demand, the rate of absorption may moderate if borrowing costs remain high. Moody's projects that 2025 will remain a relatively strong year for demand, yet caution may prevail in high-supply areas. We are prepared to support clients in navigating multifamily loan needs, especially in a potentially tempered demand environment.
Operational Efficiency Amidst Rising Costs
As supply increases in certain regions (such as Downtown Nashville, Austin, Seattle, and Charlotte), effective management and strong branding will be essential to attract residents. We recognize that rising operating costs could impact net operating income (NOI), particularly in light of constrained financing conditions. In this environment, properties facing operational challenges may present opportunities for experienced buyers who can optimize performance with apartment loan options.
Outlook: Gradual Stabilization Amid Interest Rate Pressures
While the initial outlook for 2025 was optimistic, higher Treasury yields have introduced caution to market expectations. With interest rates still elevated, a more gradual stabilization may unfold. Select Commercial Funding remains focused on supporting investors with a variety of Fort Lauderdale multifamily loan options to help manage in this dynamic market, where success will likely favor well-prepared, flexible operators.
Fort Lauderdale Apartment Loan - Rental Information
As of October 2024, the average rent in Fort Lauderdale, FL is $2,203 per month, which is 42% higher than the national average of $1,556. Rent prices in Fort Lauderdale have decreased by 0.4% over the past year, making it a great time to explore Fort Lauderdale apartment loan options.
Renters in Fort Lauderdale can expect to pay $1,846 for a studio apartment, $2,203 for a one-bedroom apartment, and $2,796 for a two-bedroom apartment. This presents opportunities for a Fort Lauderdale apartment loan.
Affordable neighborhoods, such as Progresso Village, Dorse Riverbend, and Coral Ridge Country Club Estates, provide excellent options for those seeking a Fort Lauderdale apartment loan.
2024 Fort Lauderdale Multifamily Loan Market: Robust Job Growth Fuels Demand
Fort Lauderdale's Employment Surge Supports Multifamily Sector
Fort Lauderdale is experiencing a significant boost in multifamily demand, driven by a business-friendly tax environment, affordable office rents compared to neighboring metros, and a temperate climate conducive to growth. Expected to lead in job creation across Florida in 2024, the metro's strong employment dynamics are anticipated to support one of the lowest multifamily vacancy rates in the state by year-end. However, the metro faces challenges such as rising living costs, which have pushed renters towards more affordable Class C units. Despite these pressures, Fort Lauderdale's multifamily market is well-positioned for sustained growth, benefiting from the second-fastest job growth rate in Florida.
Investment and Institutional Capital Flow into Fort Lauderdale Apartment Loans
Late 2023 saw a resurgence in transaction velocity, thanks to more stable financing conditions and subdued rate hikes by the Federal Reserve. This clarity has encouraged the return of institutional capital to pre-pandemic levels, particularly in the northwest areas of the metro like Plantation-Sunrise and Coral Springs. These areas, while facing significant supply-side pressure, continue to attract investments due to their relatively low vacancy rates. This favorable market environment is aligning buyer and seller expectations, facilitating ongoing trades and maintaining Fort Lauderdale as a key market for multifamily investments.
2024 Multifamily Market Forecast for Fort Lauderdale
- EMPLOYMENT: With an addition of 20,000 jobs, Fort Lauderdale's employment growth is projected to be second only to Miami among major Florida metros, enhancing the area's appeal for multifamily loans.
- CONSTRUCTION: The year 2024 will witness a record-breaking number of unit completions, with the inventory expected to grow by 3.2%, outpacing last year's high.
- VACANCY: Despite robust job growth, record inventory levels are expected to push the vacancy rate to 6.0% by year-end, reflecting the impact of extensive new supply.
- RENT: While the increase in availability may temper rent growth below the long-term average, Fort Lauderdale's average effective rent is anticipated to reach $2,515 per month, continuing its upward trajectory.
- INVESTMENT: Strong job and rent growth continue to propel Fort Lauderdale to the forefront of desirable investment locations within the Southeast Florida metro cohort, attracting a significant amount of out-of-state buyer activity focused on value-add opportunities.
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
What’s going on with commercial mortgage rates as we near the end of 2024?
The Federal Reserve’s Federal Open Markets Committee cut the federal funds rate by 50 basis points at its September 18, 2024, meeting. This was the first rate cut since March 2020, when the Fed began a long series of rate hikes to curb the high rate of inflation. The Fed’s decision shows that they believe that inflation is under control and moving into the 2% range that the Fed has set as its goal. The Federal Reserve took this decisive action to prevent further declines in the labor market. The Fed has further hinted at further cuts at its two remaining meetings in 2024, followed by additional cuts in 2025. This rate cut, along with possible future rate cuts, may create positive investor demand for commercial real estate, and may provide aid for commercial mortgage customers, as well as consumers in general. We must caution, however, that the Federal Reserve cuts affect short term interest rates directly and long-term rates only indirectly. The Prime Rate, which is a short-term rate, dropped from 8.50% to 8.00% with the Fed’s recent action. However, most commercial mortgage rates are based on the 5-, 7-, or 10-year treasury rates, and not the Prime Rate. We have seen these treasury rates actually rise since the Fed took its action. On September 18th, the 10-year treasury was roughly 3.70%. Three weeks later, this rate had jumped to 4.03%. Investors are still concerned about future inflation and are adopting a wait and see attitude.
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.
Apartment Loan Types We Serve
If you are looking to purchase or refinance a Fort Lauderdale apartment building, don't hesitate to contact us. We arrange financing in the city of Fort Lauderdale 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 Loan Helpful Articles
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How To Get The Best Rates On An Apartment Refinance
Recent Multifamily Loan Closings
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.
Fort Lauderdale Apartment Loans
Select Commercial provides apartment loans throughout Fort Lauderdale, Florida including, but not limited to, the areas below. We provide apartment loans in most major cities throughout the United States.