St. Louis Apartment Loans
Loans from $1 Million to $25 Million+

St. Louis Apartment Loan Rates - Rates updated September 25th, 2022

St. Louis 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
St. Louis 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
St. Louis Apartment Building St. Louis
Apartment Loan

Select Commercial has excellent St. Louis Apartment loan products and options available for owners and purchasers of multifamily properties throughout the city of St. Louis. 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. St. Louis 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 St. Louis MO 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.

St. Louis Apartment Loan Benefits

St. Louis 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!"

Apartment Loan Basics

St. Louis Apartment Loan Types We Serve

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

St. Louis 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

St. Louis Vacancy and Rents St. Louis Rent and Sales Trends

2022 St. Louis Apartment Loan Outlook

New Employers Attract Renters and Investors to the St. Louis Apartment Market

Solid apartment fundamentals caused by expanding growth in the local economy. Economic conditions in St. Louis have broadened as large employers expand into the market. The National Geospatial Intelligence Agency is presently building its $1.7 billion campus in North St. Louis, drawing many other private sector geospatial firms to the market. In the financial sector, employers such as Ameriprise and Stifel Financial increased hiring at the end of 2021. The employees of these firms create demand for Class A apartment units in the surrounding neighborhoods, causing Class A apartment vacancy rates to drop below Class C apartment vacancy rates in the market. Similarly, due to employment in St. Louis’ transportation sector, availability for Class C apartment units is at the lowest level in 20 years in western neighborhoods from Maryland Heights into St. Charles County, which will keep apartment rents increasing.

Buyers target apartment opportunities near employment sources. Neighborhoods from Clayton to Chesterfield along Interstate 64 see the bulk of the Class A apartment sales as employers with high-income job opportunities relocate to this submarket, however, increasing sales prices in this area have lowered cap rates into the mid-4% range for many of these sales. Buyers looking for sales prices below market average seek opportunities in the southern suburbs, where cap rates can be in the high-6% range. Decreased availability for Class C apartment units has attracted buyers to apartment properties close to the airport. These value-add investments draw the airport’s transportation and logistics employees and cap rates on these transactions are often in the mid-6% range and sometimes higher. In addition, because of its location near Forest Park, academic institutions, and downtown employers, the Central West End-Maplewood-University City market is a prime location for apartment building sales.

2022 Apartment Market Forecast and St. Louis Apartment Loan Economics

St. Louis has a National Multifamily Index ranking of 45. The bottom of the list ranking is caused by slow economic growth and vacancy rates above the national average.

Employment is up 2.2%. The addition of 30,000 new jobs in 2022 leaves St. Louis still nearly 30,000 total positions below the pre-Covid high.

New construction adds 2,500 apartment units. Additions exceed 2,000 units for only the second time since 2000, an increase from 1,400 apartment units completed in 2021. New apartments are primarily downtown and in St. Charles County.

Apartment vacancy rates are up 20 basis points. The absorption of more than 2,000 apartment units isn’t enough to stop the apartment vacancy rate to rise to 3.7%, a level still lower than at any time in the last decade.

Apartment rents are up 2.3%. The average effective apartment rent will hit $1,125 per month in 2022. This is the fifth straight year with a growth rate of at least 2%. Apartment rents are increasing in all apartment classes.

Investment in St. Louis apartments. Apartment investors focus on St. Charles County where population growth and new household formation outperform those in St. Louis County.

St. Louis 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 St. Louis apartment loan rate increases will affect market activity in 2022.

All data provided by Marcus and Millichap

2021 St. Louis Apartment Market and Trends

After the Covid- 19 pandemic, the St. Louis multifamily market is beginning to recover in 2021. Employment is expected to increase 1.6 percent this year. That is an increase of 22,000 jobs in 2021 which should offset a significant number of jobs lost during the pandemic. About 1,300 new units are set to be completed in 2021. This amounts to about 0.8 percent of the current inventory. Vacancy rates in St. Louis are expected to decrease in 2021. They should fall to about 4.5 percent, or a decrease of 20 basis points. Rents are expected to increase 5.7 percent in 2021 in St. Louis. The average effective rent in 2021 should hit $1,050 per month. As vaccine rollouts continue in 2021 and the economy continues to open up, the St. Louis multifamily market in 2021 should continue to heat up.

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

    St. Louis Economic Trends St. Louis Economic Trends

    Accelerated Housing Demand Bolsters Apartment Rental Market Conditions in Late-Recovering St. Louis

    Diverse job creation and recovering home values bolster St. Louis rentals. Spanning the past two years, nearly 8,000 apartments were absorbed in the metro, lowering vacancy by more than 200 basis points. Heightened multifamily demand was registered in St. Louis’ suburban and core areas, with all submarkets recording declines in vacancy amid the delivery of 4,800 apartment units metro wide. Widespread vacancy compression coupled with well-received supply additions elevated St. Louis’ average effective rent 10 percent during the 24-month span, matching the pace of home price appreciation. In 2020, continued job creation will raise the metro’s median household income at a pace that exceeds the national rate of increase, bolstering demand for mid- to higher-tier apartments as construction activity moderates. With apartment demand drivers in place, further reduction in vacancy is anticipated for 2020, supporting a rate of rent growth that notably outpaces the historical average. Investors looking to purchase multifamily property in the St Louis market should definitely look into taking out an apartment loan to finance their acquisition.

    Span of robust apartment leasing and strong rent gains attract private value-add multifamily investors. Tight vacancy in the low- and mid-tier sectors is fueling buyer competition in suburbs and neighborhoods adjacent to the core, where cap rates above 8 percent and sub-$50,000 per apartment unit pricing is prevalent. Older properties in these locales possess notable upside potential, with multifamily assets potentially delivering NOI growth following operations and facility upgrades. Suburban neighborhoods near St. Louis International Airport garner notable out-of-state buyer attention, as this area features the largest inventory of mid- to larger- Class B and C apartment listings. Local investors focus on smaller Class C multifamily buildings in neighborhoods south of Interstate 44, including Dutchtown, and cities east of the core in Illinois, where sub-$5 million trades dictate overall deal flow. In core St. Louis, select opportunities to acquire newly built apartment properties for more than $20 million will continue to drive overall multifamily sales volume in the metro moving forward. St Louis is a great market for investors to finance their next apartment purchase with a multifamily loan.

    2020 St. Louis Apartment Market Forecast

    St. Louis Completions vs. Absorption St. Louis Completions vs. Absorption

    The St Louis National Multifamily Index Rank is at 45, up 1 place. Contracting vacancy moves St. Louis up one slot in this year’s Index.

    Employment in St Louis is up 0.9%. After expanding by 22,000 positions last year, St. Louis’ employment base grows by 13,000 workers in 2020.

    Construction in St Louis is expected to exceed 1,300 apartment units. Delivery volume moderates this year following the finalization of 2,800 units in 2019. Upcoming supply additions increase the metro’s apartment stock by 0.8 percent.

    Vacancy in St Louis is down 20 bps. Rental demand outpaces completions for a third year, lowering vacancy to 4.8 percent on net absorption of 1,600 units.

    Rent in St Louis is up 6.3%. The metro’s average effective rent climbs to $1,020 per month this year, as the annual pace of rate growth exceeds 6 percent for a second consecutive period.

    Investment opportunities in St Louis remain strong for those looking to finance their next purchase with an apartment loan. Localized employment growth and proximity to transit stops and St. Louis University draw private investors to the Central West End, where high-6 to high-7 percent returns are available. We highly recommend any investors looking to buy in the St Louis market to reach out to us regarding a multifamily loan.

    Data provided by Marcus & Millichap.

    St. Louis Vacancy and Rents St. Louis 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.

    St. Louis Apartment Loan Options

    St. Louis Freddie Mac Apartment loans

    St. Louis 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

    St. Louis Fannie Mae Apartment loans

    The St. Louis Fannie Mae multifamily loan platform is one the leading sources of capital for St. Louis 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

    St. Louis 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

    St. Louis 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:

    • St. Louis 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.

    St. Louis Apartment Building Loans

    Select Commercial provides Apartment Loans and multifamily loans throughout St. Louis, Missouri including, but not limited to, the areas below.

    Academy • Baden • Benton Park • Benton Park West • Bevo Mill • Botanical Heights • Boulevard Heights • Carondelet • Carr Square • Central West End • Cheltenham • Clayton/Tamm • Clifton Heights • College Hill • Columbus Square • Compton Heights • Covenant Blu Grand Center • DeBaliviere Place • Downtown • Downtown West • Dutchtown • Ellendale • Fairground • Forest Park Southeast • Fountain Park • Fox Park • Franz Park • Gate District • Gravois Park • Greater Ville • Hamilton Heights • Hi-Pointe • Holly Hills • Hyde Park • JeffVanderLou • Kings Oak • Kingsway East • Kingsway West • Kosciusko • Lafayette Square • LaSalle Park • Lewis Place • Lindenwood Park • Marine Villa • Mark Twain • Mark Twain/I-70 Industrial • McKinley Heights • Midtown • Mount Pleasant • Near North Riverfront • North Hampton • North Point • North Riverfront • OFallon • Old North St. Louis • Patch • Peabody/Darst/Webbe • Penrose • Princeton Heights • Riverview • Shaw • Skinker/DeBaliviere • Soulard • Southampton • Southwest Garden • St. Louis Hills • St. Louis Place • The Hill • The Ville • Tiffany • Tower Grove East • Tower Grove South • Vandeventer • Visitation Park • Walnut Park East • Walnut Park West • Wells/Goodfellow • West End • Wydown/Skinker