Los Angeles Apartment Loans
Loans from $1 Million to $25 Million+

Los Angeles Apartment Loan Rates - Rates updated September 25th, 2022

Los Angeles 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
Los Angeles 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
Los Angeles Apartment Building Los Angeles
Apartment Loan

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

Los Angeles Apartment Loan Benefits

Los Angeles 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
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Apartment Loan Basics

Los Angeles Apartment Loan Types We Serve

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

Los Angeles 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

Los Angeles Vacancy and Rents Los Angeles Rent and Sales Trends

2022 Los Angeles Apartment Loan Outlook

Vacancy Rates at Lowest Level in 20 years, Investor Activity is Strong Throughout Los Angeles Market

Strong apartment leasing activity continues for a second straight year. Los Angeles County tenants leased more than 30,000 units in 2021, lowering apartment vacancy rates to a 20- year low. Economic conditions that supported strong apartment demand will continue through 2022, further tightening apartment availability. Employers are predicted to raise the market’s total job count to a level just slightly below the pre-Covid level in 2022, supporting the growth of more than 30,000 new households. For many of these would be tenants, housing options will be constrained as the county’s median home sales price exceeds $800,000. Suburban areas, markets south of Downtown Los Angeles and Silicon Beach should all grow as more people look for areas of slightly lower rent or further from the technology hubs. In addition, rental demand in the San Fernando Valley, South Bay and Westside Cities will be helped by a slowdown in each area’s construction pipeline. Decreases in new construction in 2022 will drive new renters to existing apartment properties, causing vacancy rates to remain at historically low levels in 2022.

Future potential for Class B and C apartment properties boosts investor confidence. Very low vacancy in Class C properties is drawing more investors to that class. These investors are in competition for smaller buildings, especially buildings with fewer than 30 units. Investors seeking returns in the 5% range are active in Southeast Los Angeles, Greater Inglewood and Korea town. In these markets, Class C sales prices remains largely below $300,000 per apartment unit. Similar sales prices are available in nearby Long Beach, a top choice with out-of-state purchasers seeking areas of strong rent growth. Investors interested in mid-tier apartments are bidding on similar-sized Class B apartments in higher priced Westside and San Fernando Valley locations. Strong demand for rental apartments in Santa Monica, Glendale and Studio City-North Hollywood has dropped cap rates into the 2% to 3% range for many apartment properties.

2022 Apartment Market Forecast and Los Angeles Apartment Loan Economics

Los Angeles has a National Multifamily Index ranking of 23 in 2022. Strong employment shock from Covid-19 keeps Los Angeles in the middle of the ranking despite historically low vacancy.

Employment is up 4.1%. Hiring strength exceeds the national average for a second straight year as employers add 180,000 positions in 2022.

New construction adds 6,700 new apartment units. After adding more than 10,000 apartments in both 2020 and 2021, developers increase the market’s rental stock by only 0.6% in 2022.

Vacancy down another 40 basis points. Net rental activity outpaces new apartment volume by more than 4,000 apartment units in 2022, dropping vacancy rates to 2.3%. This decrease in vacancy follows the 180-basis-point decrease in 2021.

Apartment rental rates up 4.5%. The average apartment rent in Los Angeles rises at a similar rate to rates recorded from 2016 through 2019. This rise causes the average monthly rate to climb to $2,580.

Investment in Los Angeles apartments. Rent control restrictions in Los Angeles, Santa Monica and West Hollywood may cause investors to look at properties built after 1980 as these newer units are not subject to rent restrictions.

Los Angeles 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 Los Angeles apartment loan rate increases will affect market activity in 2022.

All data provided by Marcus and Millichap

2021 Los Angeles Apartment Market and Trends

Coming into 2021, the Los Angeles metro had the second-highest unemployment rate in the country. The city recouped fewer than half of the 660,000 jobs lost last spring due to COVID-19. On the other hand, Los Angeles’s economy is starting to benefit from the removal of a lot of COVID-19 restrictions. These new policies have allowed many companies to begin to rehire new employees to boost the metro’s economy in 2021. As more and more vaccines are administered throughout 2021, restrictions are expected to be further reduced throughout the city. This should allow businesses and restaurants to reopen and begin to serve the city’s population again. With more and more vaccination in the city, tourism is increasing in Los Angeles as well. This is really helping the city’s leisure and hospitality sectors to recoup from losses due to COVID-19. Experts have suggested that as the labor market continues to improve in 2021, multifamily landlords should benefit as more than half of households in Los Angeles rent living space.

After the Covid- 19 pandemic, the Los Angeles multifamily market is beginning to recover in 2021. Employment is expected to increase 2.6 percent this year. That is an increase of 109,200 jobs in 2021 which should offset about 25 percent of the jobs lost during the pandemic. About 14,040 new units are set to be completed in 2021. This amounts to growth of 1.3 percent of the current inventory. Mid-Wilshire and Hollywood will register the largest increases in rental supply in 2021. Vacancy rates in Los Angeles are expected to increase in 2021 to 5 percent as apartment deliveries outpace demand. They should move up about 50 basis points. With vacancy rates going up, rents are expected to decrease 2.1 percent in 2021. The average effective rent in 2021 should hit $2,175 per month.

- 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

    Los Angeles Economic Trends Los Angeles Economic Trends

    High Cost of Homeownership Sustains Rental Demand; Investors Target Locales With Higher Return Thresholds

    Tight conditions preserved amid wave of supply additions. In each of the previous three years multifamily rental demand in Los Angeles outpaced elevated levels of construction activity, compressing vacancy to a cycle-low level entering 2020. Limited apartment unit availability occurs at an opportune time, as the county’s multifamily rental inventory will swell by an additional 14,000 apartment units this year, the third-largest total among major U.S. metros. While core Los Angeles continues to record the largest influx of new apartments, deliveries are more evenly distributed between Downtown Los Angeles, Mid-Wilshire and Hollywood than in previous years. Elsewhere, the San Fernando Valley will record a large increase of new multifamily units, welcoming more than 4,000 apartment rentals, 40 percent of which are in Woodland Hills. Throughout the county, projects in lease-up will benefit from steep home prices and income growth, but concessions usage will increase as multifamily developers seek to achieve stabilization in under a year. With solid apartment demand drivers in place, the overall impact of cycle-high delivery volume will be moderate, with metro vacancy rising to 4 percent. Investors looking to purchase property in Los Angeles should definitely look into taking out an apartment loan to finance their acquisition.

    New legislation forces investors to adjust expectations. Robust multifamily renter demand for lower-cost apartments will fuel buyer competition for properties near major freeways and employment hubs this year. While the implementation of statewide rent control could alter returns on Class C apartment investments following a span of sizable rental rate gains in this tranche, tight conditions should allow for steady, yet more subdued, increases moving forward. In-county multifamily investors and regional 1031-exchange buyers should be most active, eyeing Koreatown, South Bay and the San Gabriel Valley, where pricing below $200,000 per apartment unit and 5 percent-plus cap rates can be found. Hollywood, Mid-Wilshire and the San Fernando Valley represent additional targets for these buyers; however, yields beyond the mid-4 percent band will be harder to obtain as multifamily asset values in these locales rise. Los Angeles is a great market for investors to finance their next apartment purchase with a multifamily loan.

    2020 Los Angeles Apartment Market Forecast

    Los Angeles Completions vs. Absorption Los Angeles Completions vs. Absorption

    The Los Angeles National Multifamily Index Rank is at 13, down 9 places. Uncertainty regarding California’s rent-control implementation and a boost in inventory amid slower employment growth knock Los Angeles out of the top 10 in the 2020 NMI.

    Employment in Los Angeles is up 0.9%. After expanding payrolls by 50,000 positions last year, metro employers bolster staffs by 40,600 workers in 2020.

    Construction in Los Angeles is expected to exceed 14,100 apartment units. Delivery volume rises by more than 5,200 units on a year-over year basis, increasing Los Angeles’ rental stock by 1.3 percent.

    Vacancy in Los Angeles is up 60 bps. Supply additions outpace rental demand for the first time in four years, elevating metro vacancy to 4.0 percent. Still, more than 6,800 units will be absorbed.

    Rent in Los Angeles is up 3.0%. Increased concessions usage and rent control will slightly slow the mean rental growth this year, with the average effective rent reaching $2,380 per month.

    Investment opportunities in Los Angeles remain strong for those looking to finance their next purchase with an apartment loan. Home to a cohort of higher-earning residents who are choosing to not purchase a home, Silicon Beach remains a target for buyers willing to deploy more than $500,000 per unit for Class C assets. We highly recommend any investors looking to buy in the Los Angeles market to reach out to us regarding a multifamily loan.

    Data provided by Marcus & Millichap.

    Los Angeles Vacancy and Rents Los Angeles 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.

    Los Angeles Apartment Loan Options

    Los Angeles Freddie Mac Apartment loans

    Los Angeles 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

    Los Angeles Fannie Mae Apartment loans

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

    Los Angeles 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

    Los Angeles 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:

    • Los Angeles 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.

    Los Angeles Apartment Building Loans

    Select Commercial provides Apartment Loans and multifamily loans throughout Los Angeles, California including, but not limited to, the areas below.

    Los Feliz • Westwood • Playa Vista • Beverly Crest • New Downtown • Mar Vista • Mid-City West • Brentwood • Silver Lake • Pacific Palisades • Rancho Park • Mid-Wilshire • Encino • Venice Beach • Echo Park • Hollywood • Elysian Park • Glassell Park • Granada Hills • Northridge