Salt Lake City Apartment Loans
Loans from $1 Million to $25 Million+

Salt Lake City Apartment Loan Rates - Rates updated October 3rd, 2022

Salt Lake City Apartment Loan Rates Over $6,000,000 Rates (start as low as) LTV
Apartment 5 Year Fixed Loan Rates 5.40% Up to 80% Get Free Quote
Apartment 7 Year Fixed Loan Rates 5.40% Up to 80% Get Free Quote
Apartment 10 Year Fixed Loan Rates 5.50% Up to 80% Get Free Quote
Salt Lake City Apartment Loan Rates Under $6,000,000 Rates (start as low as) LTV
Apartment 5 Year Fixed Loan Rates 5.50% Up to 80% Get Free Quote
Apartment 7 Year Fixed Loan Rates 5.50% Up to 80% Get Free Quote
Apartment 10 Year Fixed Loan Rates 5.60% Up to 80% Get Free Quote
Salt Lake City Apartment Building Salt Lake City
Apartment Loan

Select Commercial has excellent Salt Lake City Apartment loan products and options available for owners and purchasers of multifamily properties throughout the city of Salt Lake City. 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. Salt Lake City 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 Salt Lake City UT 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.

Salt Lake City Apartment Loan Benefits

Salt Lake City Apartment Loan rates start as low as 5.50% (as of October 3rd, 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!"

Apartment Loan Basics

Salt Lake City Apartment Loan Types We Serve

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

Salt Lake City 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

Salt Lake City Vacancy and Rents Salt Lake City Rent and Sales Trends

2022 Salt Lake City Apartment Loan Outlook

Covid-19 Growth Propels Rapid Rent Increases – National Investors Take Notice

Population increases push rents higher amid low vacancy conditions. The effect of Covid-19 on employment was lower in Salt Lake City than in any other major city in the nation, causing a full economic recovery by February of 2021. Beginning 2022, the area has one of the lowest unemployment rates in the country, causing companies to recruit and relocate employees from outside the market. The resulting relocations to Salt Lake City will create one of the highest rates of rent growth in the nation. Vacancy rates less than 3% across the entire area also supports a large number of new construction projects. Most of these new properties are expected to open in central Salt Lake, where Class A apartment vacancy rates dropped below Class C apartment availability during Covid-19. Technology companies like Adobe and Micron are growing their workforces while many other technology companies are creating a market near the “Silicon Slopes” in north Lehi, causing builders to plan and grow projects in nearby Draper. Meanwhile, construction activity has slowed down in both Ogden and Provo as builders react to renter demand in Salt Lake City. Less new construction will keep vacancy rates low and keep rents higher in these markets.

Apartment economics cause investment from out-of-state investors. Growing demographics and strong employment growth along with a tight rental market have caused an increase in sales activity in Salt Lake City apartments. Historically, sales activity in the market has been from in-state investors; now, national investors are very active in the market as apartment fundamentals in the market are among the strongest in the country. Institutional transactions are common in the areas between the core and suburbs, like Cottonwood at the south end of the Belt Route. Investment returns in the mid-3% range are common on these sales. Initial investment returns above this range have been seen in both Weber and Utah counties, as Provo and Ogden have been targeted by smaller investors pushed out of Salt Lake City by increasing sales prices. Apartment properties in both suburbs have been less affected by competition from new apartment additions and some of these sales have seen returns in the 6% range on occasion.

2022 Apartment Market Forecast and Salt Lake City Apartment Loan Economics

Salt Lake City has a National Multifamily Index ranking of 6. Rapidly rising rents and strong job creation push Salt Lake City to the top tier of the 2022 rankings.

Employment is up 3.3%. Employers will add 45,000 new jobs in 2022. The rate of job growth in Salt Lake City will exceed the national average by 80 basis points.

New construction will add 4,000 apartment units. Construction drops slightly from 2021’s pace of 5,900 apartment units. Most of the 2022 activity is due to the addition of several 100-plus-unit apartment buildings in Downtown Salt Lake City.

Apartment vacancy rates are up 20 basis points. Vacancy climbs slightly to 2.5% after plunging to record-low rates at the end of 2021. Vacancy rates are affected by an increase in construction activity in the last few years.

Apartment rents are up 7.7%. The average effective rent increases to $1,530 per month, a slower growth rate than 2021. The two-year rate of apartment rent increase jumped above 27%.

Investment in Salt Lake City apartments. Since 2018, the percentage of buyers from California has doubled. This trend is continuing in 2022 as investors seek higher rates of return in a more rapidly growing market.

Salt Lake City 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 Salt Lake City apartment loan rate increases will affect market activity in 2022.

All data provided by Marcus and Millichap

2021 Salt Lake City Apartment Market and Trends

Due to certain factors such as Utah’s tax incentive programs for corporations, companies such as Scorpion and Stitch Fix are moving to Salt Lake City. This has helped to boost the already healthy employment market in 2021. In February, the market regained all positions lost during COVID- 19 and has continued to grow throughout 2021. Halfway through 2021, the metro’s unemployment rate was down to 2.6 percent. This ranked as the lowest unemployment rate in the nation. Salt Lake City’s robust job market contributed to a 1.2 percent increase in population last year, four times the national rate. Growth in the region’s 20- to 34-year-old population also outpaced all major U.S. markets in 2020, further contributing to rental demand in the metro.

Employment is up in the Salt Lake City market in 2021. About 61,000 jobs are expected to be created this year. This amounts to a gain of about 4.7 percent jobs in 2021. Construction of new apartment units is up in the market in 2021. About 5,400 new units will be completed this year. This year’s delivery volume will be the highest in the metro over the last two decades. Vacancy is down in the Salt Lake City market in 2021. The vacancy rate is expected to decrease 120 basis points. Rents are up in 2021. Rents are expected to increase 8.8 percent to an average effective rent of $1,310 in 2021.

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

    Salt Lake City Economic Trends Salt Lake City Economic Trends

    Another High Volume of Leasing Projected in 2020; Out-of-State Buyers Expand Local Presence

    Metro records sixth straight year of robust multifamily leasing activity. Salt Lake City enters this year following a stretch of stout apartment demand that translated to the absorption of more than 23,000 multifamily units since 2015. Fueled by strong in-migration, vacancy reached a cycle-low level last year, placing the Wasatch Front on solid footing prior to a large influx of new apartment rentals. In 2020, more than 4,000 multifamily units are slated for finalization, bolstering the metro’s apartment inventory by over 3 percent, one of the largest increases registered in the nation. Three-fourths of this delivery volume is concentrated in the southern portion of Salt Lake County, with the majority of apartment completions occurring south of Interstate 215. The influx of new apartments will increase metro vacancy in the short term and could temporarily raise concessions usage, yet more than 3,400 multifamily units will be absorbed for the sixth consecutive year amid unwavering population growth. Investors looking to purchase multifamily property in the Salt Lake City market should definitely look into taking out an apartment loan to finance their acquisition.

    Strong multifamily fundamentals and higher cap rates attract a greater mix of investors. Out-of state private buyers and institutional firms targeting value-add options or long-term holds are extremely active in downtown Salt Lake City. Here, opportunities to acquire both smaller Class C apartment complexes and higher-tier multifamily assets are frequently available, often via multi property transactions. Depending on quality and location, these multifamily assets provide buyers with 5 percent to low-6 percent returns. Sugar House and other neighborhoods south of downtown, off Interstate 80, garner attention from outside and in-state investors alike, as these areas house higher earning households and above-average rents. Class C apartment transactions dictate deal flow in these locales, with first-year yields hovering in the 5 percent range. Local high-net-worth individuals pushed out of the core are pursuing Class C multifamily listings in Ogden, Provo and other outlying portions of the metro. Salt Lake City is a great market for investors to finance their next apartment purchase with a multifamily loan.

    2020 Salt Lake City Apartment Market Forecast

    Salt Lake City Completions vs. Absorption Salt Lake City Completions vs. Absorption

    The Salt Lake City National Multifamily Index Rank is at 19. Salt Lake City holds steady in the NMI this year as employment slows and rising vacancy tempers rent gains.

    Employment in Salt Lake City is up 1.7%. Employers bolster payrolls by 22,000 positions this year with softer growth than last year’s 2.5 percent increase as a shortage of available labor prevents a larger gain from occurring.

    Construction in Salt Lake City is expected to exceed 4,300 units. Driven by large-scale completions in southern suburbs, delivery volume increases by more than 2,000 units on a year-over-year basis in 2020.

    Vacancy in Salt Lake City is up 50 bps. Vacancy climbs to 3.8 percent this year amid a wave of project deliveries. Last year, vacancy dropped by 100 basis points.

    Rent in Salt Lake City is up 6%. The metro’s average effective rent elevates to $1,270 per month, with the annual pace of rate growth down slightly from last year.

    Investment opportunities in San Bernardino remain strong for those looking to finance their next purchase with an apartment loan. Initial returns in the 5 percent range will continue to attract out-of-state buyers to Salt Lake City’s core during a span of rapidly rising asset values. We highly recommend any investors looking to buy in the San Bernardino market to reach out to us regarding a multifamily loan.

    Data provided by Marcus & Millichap.

    Salt Lake City Vacancy and Rents Salt Lake City 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.

    Salt Lake City Apartment Loan Options

    Salt Lake City Freddie Mac Apartment loans

    Salt Lake City 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

    Salt Lake City Fannie Mae Apartment loans

    The Salt Lake City Fannie Mae multifamily loan platform is one the leading sources of capital for Salt Lake City 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

    Salt Lake City 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

    Salt Lake City 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:

    • Salt Lake City 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.

    Salt Lake City Apartment Building Loans

    Select Commercial provides Apartment Loans and multifamily loans throughout Salt Lake City, Utah including, but not limited to, the areas below.

    Avenues, Capitol Hill, Downtown, East Bench, East Central, Northwest Coalition, Sugarhouse, West Salt Lake