New Jersey Apartment/Multifamily Loans
$1,000,000 Minimum

New Jersey Apartment Loan Rates - Rates updated July 28th, 2021

New Jersey Apartment/Multifamily Loan Programs Over $5,000,000 Rates (start as low as) LTV
Multifamily 5 Year Fixed Loan Rates 2.54% Up to 80% Get Free Quote
Multifamily 7 Year Fixed Loan Rates 2.68% Up to 80% Get Free Quote
Multifamily 10 Year Fixed Loan Rates 2.88% Up to 80% Get Free Quote
New Jersey Apartment Loan Programs Under $5,000,000 Rates (start as low as) LTV
Multifamily 5 Year Fixed Loan Rates 3.20% Up to 80% Get Free Quote
Multifamily 7 Year Fixed Loan Rates 3.21% Up to 80% Get Free Quote
Multifamily 10 Year Fixed Loan Rates 3.23% Up to 80% Get Free Quote
New Jersey Apartment Building New Jersey
Apartment Building

Select Commercial has excellent apartment building loan and multifamily loan products and options available for owners and purchasers of multi-family and apartment properties throughout the state of New Jersey. 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. New Jersey is one of the states that we consider to be a premium market for apartment building loans 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 NJ 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.

New Jersey Apartment Loan Benefits

New Jersey Apartment Loan rates start as low as 2.54% (as of July 28th, 2021)
• No upfront application or processing fees 
• Simplified application process 
• Up to 80% LTV on apartment financing 
• Terms and amortizations up to 30 years 
• 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!"

New Jersey Apartment Loan Types We Serve

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

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.

What Happened with Apartment Loans in 2019

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.

New Jersey 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 Loan and Rate Information

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 Loan and Rate Information

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 market. Freddie Mac has a very aggressive program for small balance 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.

New Jersey 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:

  • 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 loan requests of all sizes, beginning at $1,000,000. Get started with a Free Commercial Mortgage Loan Quote.

New Jersey Multifamily Loan Information and Economic Overview

Commercial real estate investors looking for good opportunity would do well to look at commercial mortgage financing in New Jersey. Due to job growth over the past year, the U.S. economy continued to expand over the last year leading to highest wage increase year-over-year in the last decade. Construction and manufacturing jobs grew by 37 and 12 percent, respectively. At the same time consumer spending also improved. New Jersey’s economic growth was no exception. All of this spending accompanied by huge e-commerce growth has enabled the New Jersey commercial real estate market to once again profit from consumer demand. New Jersey’s industrial real estate market finished last year with a very strong fourth quarter highlighted by 6.5 million square feet of leasing transactions, and over four million square feet of net absorption (driving annual net absorption to 11.6 million square feet). Furthermore, the total available space went down from about 57 million square feet to just over 54 million square feet.  The overall vacancy rate dropped 20 bps year-over-year to about 3.3 percent.

New Jersey can also be a great place to obtain commercial mortgage financing in order to invest in multifamily buildings. Knowing exactly where to buy real estate is crucial when investing in the New Jersey multifamily market. One fact that may scare potential commercial real estate investors away is that New Jersey has the highest property taxes of any state in America. However, this frightening statistic also makes New Jersey a high potential investment location. High property taxes should cause personal property ownership rates to decrease. As a result, commercial real estate investors can purchase multifamily homes and apartment buildings cheaply and find a plethora of tenants who will reliably rent for years to come. The average rent for multifamily units in New Jersey’s large cities is typically lower than the national average. The fastest growing rents in the state over the past year were in Trenton where rental prices increased by 5.3%. Apartments in Hamilton saw the second highest annual rent increase, jumping by 4.4%, just under $60 more expensive than last year’s rent prices. The most expensive apartments in the state are located in Hoboken, with an average rent of over $3,470. Coming in at number two are units in Edgewater at an average rent of over $3,160, followed by Jersey City, with an average rent of about $2,920 per month. On the other hand, the lowest priced large city to rent an apartment in is Trenton, where the average apartment rent is $1,122. New Jersey’s smaller cities have followed the national trend by showcasing the fastest rent increases in their state. Orange City has maintained a year-over-year rent growth of 6.8%, while Blackwood apartments are 6.2% more expensive to rent than a year ago. In terms of commercial mortgages, there are over 675 thousand mortgages for commercial real estate properties throughout the state of New Jersey. The average value of these commercial mortgages is over $7.2 million, 32% above the United States average. This data indicates that New Jersey is a great place to take out a commercial mortgage loan.

As previously mentioned, the past year has seen trends heavily favoring industrial and multifamily real estate in New Jersey. Below are some of the biggest developments of the year in New Jersey commercial real estate. About a year ago, 109 Holdings LLC sold the building at 1200 Clinton St. in Hoboken to 1200 Clinton Equity LLC for $87.5 million. In September of 2017 it was reported that 109 Holdings LLC was developing the property, which was already mostly occupied at the time. In 2016, a joint venture of Fields Development Group and Ursa Development Group opened up leasing at 1200 Clinton St. The six-story 159-unit building sat on the site of a former coal burning plant that was decontaminated in 2013. This past January, Equity Residential purchased the development at 198 Van Vorst St. This 131-unit building was finished back in 2013 and as of December of last year it was 92% leased. While Equity Residential did not disclose the price at which it acquired the property, Reonomy data, based on public records, lists the sale price at over $77 million. The priciest acquisition by far in the New Jersey market in the past year came from the hottest asset class in the strongest submarket in the state. On April 1, Roseland Residential Trust, a subsidiary of Mack-Cali Realty purchased the 377-unit Soho Lofts from AEW for over $263 million. This multi-tower building was completed in 2018 and is located right next to the entrance to the Holland Tunnel.

New Jersey Apartment Loans

Select Commercial provides apartment loans and commercial mortgages throughout the state of New Jersey including but not limited to the areas below.

• Atlantic County • Essex County • Ocean County • Bayonne • Gloucester • Old Bridge • Bergen County • Gloucester County • Passaic • Brick • Hamilton • Passaic County • Burlington County • Hudson County • Paterson • Camden • Hunterdon County • Salem County • Camden County • Jersey City • Somerset County • Cape May County • Lakewood • Sussex County • Cherry Hill • Mercer County • Toms River • Clifton • Middlesex County • Union City • Cumberland County • Middletown • Warren County • East Orange • Monmouth County • Woodbridge • Edison • Morris County • Elizabeth • Union County Newark