Milwaukee Apartment Loans
Loans from $1 Million to $25 Million+
|Milwaukee 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|
|Milwaukee 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|
Select Commercial has excellent Milwaukee Apartment loan products and options available for owners and purchasers of multifamily properties throughout the city of Milwaukee. 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. Milwaukee 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 Milwaukee WI 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.
Milwaukee Apartment Loan Benefits
Milwaukee 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!"
Milwaukee Apartment Loan Types We Serve
If you are looking to purchase or refinance a Milwaukee apartment building, don't hesitate to contact us. We arrange financing in the city of Milwaukee 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
Milwaukee Apartment Loan Helpful ArticlesHow 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
How to Qualify for a Great Rate When Refinancing Your Apartment Building
2022 Milwaukee Apartment Loan Outlook
Blue Collar Employment Creates Demand for Rental Apartments - Local Buyers Drive Sales Volume
The continuing rise in home prices creates low apartment rental availability. Local apartment vacancy rates were below the national average entering 2022, and the Milwaukee market is expected to continue last year’s strong performance. Local employment and housing availability create good demand for rental apartments in the area. Milwaukee has a relatively large number of low- to middle-income households, as the trade, manufacturing, utilities and transportation sectors account for more than 30% of the jobs in the market area. This level of employee income pushes demand for Class B and Class C apartments, especially in markets south of the city along Interstate 94. Higher income residents are increasingly looking to rent as well, as home prices keep rising. The median home price rose sharply from approximately $269,000 at the end of 2019 to $339,000 at the end of 2021. Over that same time period, the median household income rose a very modest 2.1%. With apartment additions expected to grow by less than 1% in 2022, along with a gap between income and single-family home prices, apartment vacancy rates will remain below 3% in 2022, pushing rent growth higher.
Purchasers of apartment properties are not facing strong competition from national buyers. Despite vacancy rates below 3%, positive rent growth for over 10 years, and an average first-year investment return at least 1% above the national average, national buyers are not that active in this market. Local in-state purchasers totaled approximately two-thirds of the purchases over the past two years. Many national purchasers expanded their market area during the Covid-19 pandemic, but Milwaukee escaped investor attention. Accordingly, purchasers have experienced less competition acquiring apartment properties, despite lower sales prices and higher returns than many other cities. Investors purchasing Class A and Class B apartments look at Downtown neighborhoods as well as suburbs just west of the city, such as, Wauwatosa, West Allis and Brookfield. Cap rates in these areas in the low to mid-5% range are fairly standard. Buyers looking for returns above 7% seek out Class C apartment properties in northwest suburbs along the Interstate 41 corridor.
2022 Milwaukee Multifamily Forecast and Milwaukee Apartment Loan EconomicsMilwaukee has a National Multifamily Index ranking of 32. Low vacancy gives Milwaukee a boost in this year’s Index, but slow job growth keeps it in the lower half of the rankings.
Employment is up 2.6%. Due to hiring in the service sector as the economy recovers, the employment number grows by 22,000 jobs in 2022.
New construction adds 1,100 apartment units. Developers will complete fewer rentals in 2022 than in any year since 2013. Builders are most active in Waukesha County suburbs such as Brookfield and Oconomowoc.
Apartment vacancy is down 10 basis points. The apartment vacancy rate drops to 2.7% as new rentals stay ahead of new supply. Rental rates are at the highest level in the last decade and the vacancy in Class C apartments drops to under 2%.
Apartment rents are up 4.6%. Staying on pace with the trailing 5 year average, the mean effective rent increases to $1,360 per month in 2022. This increase marks the 12th straight year of positive rent growth.
Investment in Milwaukee apartments. Renovation projects Downtown such as the Harbor District could generate potential returns for investors. The stock of older buildings in the central business district may be used for value-add strategies.
Milwaukee 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 the apartment loan rate increases will affect market activity in 2022.
All data provided by Marcus and Millichap
2021 Milwaukee Apartment Market and Trends
After the Covid- 19 pandemic, the Milwaukee multifamily market is beginning to recover in 2021. Employment is expected to increase 3.4 percent this year. That is an increase of 27,300 jobs in 2021 which should offset a significant number of jobs lost during the pandemic. Only about 2,170 new units are set to be completed in 2021. This amounts to about 1.4 percent of the current inventory. Vacancy rates in Milwaukee are expected to decrease in 2021. They should come down about 3.9 percent, or 20 basis points. With vacancy rates going down, rents are expected to increase 3.5 percent in 2021. The average effective rent in 2021 should hit $1,247 per month. As vaccine rollouts continue in 2021 and the economy continues to open up, the Milwaukee multifamily market in 2021 should continue to heat up.
- Data provided by Marcus and Millichap
2021 Multifamily Outlook
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
Debundling Households Retain Class B/C Demand; Workforce Rentals Providing Solid Cash Flows
Budget-friendly multifamily housing in high-demand; sluggish lease-up of luxury apartment rentals facilitates vacancy increase. More households are being created than individuals added to the population, a phenomenon not common on the national level. The homegrown population is forming new residences as young adults are moving out of family homes or decoupling from multiple roommate living situations. Seeking more suitable multifamily residences, these individuals are often looking to budget-friendly apartment rental options, driving Class B/C vacancy to near cycle lows in the mid-2 to low-2 percent range. Additionally, employers are frequently recruiting students from the numerous local higher-education institutions, and a high percentage of them are being retained within the metro after graduation. With an income to support an upgraded living situation, these individuals are creating new households near their employers, often choosing multifamily rental housing as a cost-effective option as they start their careers. Although these positive trends will maintain steady lease-up for Class B/C apartment units, demand for luxury rentals lags behind deliveries. As new Class A multifamily projects are finalized they will take longer to be leased, resulting in upward pressure on the metro’s overall vacancy this year. Investors looking to purchase property in the Milwaukee market should definitely look into taking out an apartment loan to finance their acquisition.
Suburban mid-tier multifamily assets high on investors’ radar. Tight market conditions for suburban garden-style apartment rentals will deliver sizable rent growth, appealing to a wide range of investors. As multifamily listings remain limited, buyer competition will ramp up supporting comparatively aggressive pricing. In-state investors will concentrate primarily on north and west suburbs, in the corridor between Interstate 41 and I-43. Here, rising apartment rental rates are setting the stage for value-add potential and recent trades capture cap rates in the mid-6 to 8 percent area. Out-of-state buyers will favor newly built multifamily assets in the core, where initial yields have been in the 5 percent range. A highly competitive yield compared to urban core assets in most primary metro markets. Milwaukee is a great market for investors to finance their next apartment purchase with a multifamily loan.
2020 Milwaukee Apartment Market Forecast
The Milwaukee National Multifamily Index Rank is at 38, down 3 places. Increasing vacancy, a slowdown in rent gains allow other markets to move up and lower the standing for Milwaukee in this year’s Index.
Employment in Milwaukee is up 0.5%. The job growth trajectory eases as 4,600 roles are created. Employers added 5,000 positions in the previous year.
Construction in Milwaukee is expected to exceed 2,200 apartment units. New rentals are brought to market at a more constrained pace than the 2,600 units completed in 2019. Development is scattered between the core and suburbs.
Vacancy in Milwaukee is up 30 bps. While remaining relatively low, vacancy ticks up to 3.6 percent this year as apartment leasing lags behind recent completions.
Rent in Milwaukee is up 3.9%. Robust demand for a limited available supply of garden-style rentals supports the average effective rent growth to $1,218 per month. Last year a 4.5 percent gain was recorded.
Investment opportunities in Milwaukee remain strong for those looking to finance their next purchase with an apartment loan. Class C assets will be heavily targeted by local and regional investors, driving up sale prices. Institutional investors target newly built assets in trendy millennial hubs downtown. We highly recommend any investors looking to buy in the Milwaukee market to reach out to us regarding a multifamily loan.
Data provided by Marcus & Millichap.
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.
Milwaukee Apartment Loan Options
Milwaukee Freddie Mac Apartment loans
Milwaukee 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.
Milwaukee Fannie Mae Apartment loans
The Milwaukee Fannie Mae multifamily loan platform is one the leading sources of capital for Milwaukee 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).
Milwaukee 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.
Milwaukee 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:
- Milwaukee 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.
Milwaukee Apartment Building Loans
Avenues West, Baran Park, Bay View, Borchert Field, Brewers Hill, Burnham Park, Clarke Square, Clock Tower Acres, Cold Spring Park, Concordia, Downer Woods, Downtown, East Side, Far North Side, Far Northwest Side, Far South Side, Far West Side, Forest Home Hills, Franklin Heights, Grasslyn Manor, Halyard Park, Hampton Heights, Harambee, Harbor View, Hawthorne Glen, Haymarket, Hillside, Historic Mitchell Street, Historic Third Ward, Jones Island, Juneau Town, King Park, Lake Park, Layton Park, Lincoln Village, Lower East Side, Martin Drive, Menomonee River Valley, Merrill Park, Metcalfe Park, Midtown, Miller Valley, Mitchell Park, Murray Hill, Muskego Way, National Park, Near North Side, Near South Side, North Division, Northpoint, Park West, Parkview, Polonia, Riverside Park, Riverwest, Roosevelt Grove, Saint Joseph, Schlitz Park, Sherman Park, Silver City, Southeast Side, Southwest Side, Sunset Heights, Triangle, Triangle North, University Hill, Upper East Side, Uptown, Walkers Point, Walnut Hill, Washington Heights, West Side, Wick Field, Yankee Hill.