Tampa Apartment Loans
Loans from $1 Million to $25 Million+
|Tampa Apartment Loan Rates Over $6,000,000||Rates (start as low as)||LTV|
|Apartment 5 Year Fixed Loan Rates||4.59%||Up to 80%||Get Free Quote|
|Apartment 7 Year Fixed Loan Rates||4.65%||Up to 80%||Get Free Quote|
|Apartment 10 Year Fixed Loan Rates||4.73%||Up to 80%||Get Free Quote|
|Tampa Apartment Loan Rates Under $6,000,000||Rates (start as low as)||LTV|
|Apartment 5 Year Fixed Loan Rates||4.72%||Up to 80%||Get Free Quote|
|Apartment 7 Year Fixed Loan Rates||4.78%||Up to 80%||Get Free Quote|
|Apartment 10 Year Fixed Loan Rates||4.86%||Up to 80%||Get Free Quote|
Select Commercial has excellent Tampa Apartment loan products and options available for owners and purchasers of multifamily properties throughout the city of Tampa. 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. Tampa 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 Tampa FL 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.
Tampa Apartment Loan Benefits
Tampa Apartment Loan rates start as low as 4.59% (as of June 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!"
Tampa Apartment Loan Types We Serve
If you are looking to purchase or refinance a Tampa apartment building, don't hesitate to contact us. We arrange financing in the city of Tampa 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
Tampa 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 Tampa Apartment Loan Outlook
Strong Apartment Demand Keeps Record Low Vacancy in Tampa – Investment Activity is Solid
Strong employment opportunities bring new residents to the market. Florida’s relaxed Covid-19 regulations during the health crisis caused the economy in Tampa to rebound faster than most other large U.S. cities. Employment in the local market is growing quickly, creating high levels of migration to the market, creating record setting demand for apartment unit rentals. Renters leased more than 13,500 new apartment units in 2021, lowering apartment vacancy to 2% and raising apartment rents by more than 20% during the largest period of new apartment delivery since 2000. Local market fundamentals are the strongest in a long time and there is expectation that these conditions will continue in 2022. Tampa’s business friendly tax structure and highly skilled employee base cause many companies to relocate to the area. Signode Industrial Group and ConnectWise are relocating their offices to Tampa in 2022, adding more job opportunities to the market. The market’s strong rate of demographic growth, coupled with moderating numbers of new apartments slated for completion in 2022, will keep market apartment vacancy rates at record setting lows. In addition, tight availability in the local market will continue to cause apartment rental increases, making Tampa one of the top performing apartment markets in the country.
Lower sales prices drive investor competition. Apartment pricing in Tampa is lower as compared to other large Florida markets and strong apartment rent increases are fueling investment sales in the market. Competition among buyers for apartment properties is driving sale prices up and lowering cap rates to the mid-5% range. Despite the drop in cap rates, initial investment returns in Tampa are approximately 50 basis points above the national average, drawing interest from investors looking for higher returns to the Tampa market. These investors are focused on Southeast Tampa and Pasco County, where investment returns are often higher than the market average. Sales activity with institutional investors and private equity is on the rise due to the rising rental rates in the market. Institutional investors target apartment properties in North Tampa and Pinellas County, where high end apartments often sell near $180,000 per unit.
2022 Apartment Market Forecast and Tampa Apartment Loan EconomicsTampa has a National Multifamily Index ranking of 8. New residents moving to the market and steadily rising rents give Tampa a top 10 ranking in the 2022 survey.
Employment is up 4.5%. Employers will create 64,000 new jobs in 2022, after a 4.8% rise in total employment in 2021.
New construction adds 5,800 apartment units. Construction levels slow down in 2022 after the completion of 8,000 apartment units in 2021. New deliveries will increase the city’s rental stock by 2.2%.
Vacancy rates remain unchanged. Vacancy rates will remain at 2% as net absorption matches additions in 2022. In 2021, a drop of 220 basis points occurred, dropping vacancy rates to a record low.
Apartment rents are up 5.5%. Tight vacancy rates increase the average effective rent to $1,635 per month, representing the 13th year in a row of annual rent increases in the market.
Investment in Tampa apartments. Historically strong apartment performance attracts interest from national investors and continues to create demand for available apartment properties.
Tampa 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 Tampa apartment loan rate increases will affect market activity in 2022.
All data provided by Marcus and Millichap
2021 Tampa Apartment Market and Trends
The Tampa apartment market experienced a boom in demand over the year ending in June 2021. Factors such as Tampa’s affordability and pandemic-related policies have spurred renters to the city from higher-density markets in 2021. Over 10,400 apartment units have been absorbed in the Tampa market during that span. Multifamily demand in the market has continued to outpace deliveries in 2021. This has helped to reduce the market’s average vacancy rate to an all-time low of 3.1 percent in 2021. The Tampa market is experiencing its strongest rent gains of the last 20 years in 2021. The market has more than doubled the national pace this year. Tampa’s average effective rent is nevertheless still well below major gateway markets, helping to stimulate demand from those seeking lower living costs.
Employment is up in the Tampa market in 2021. About 43,000 jobs are expected to be created this year. This amounts to a gain of about 3.2 percent jobs in 2021. The Seattle market will recapture a significant number of jobs lost due to COVID-19 in 2021 as the market should conclude the year within 0.5 percent of the pre-pandemic employment level. Construction of new apartment units is up in the Tampa market in 2021. About 5,700 new units will be completed this year. This will be a growth of about 2.2 percent in available stock in 2021. Vacancy is down in the Tampa market in 2021. The vacancy rate is expected to decrease 120 basis points to 3 percent. Rents are up in 2021. Rents are expected to increase 14.6 percent to an average effective rent of $1,475 in 2021.
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
Housing Demand Soars as Multifamily Construction Pipeline Thins; Out-of-State Investors Dominate Trading Activity
Corporate headquarter prominence, a strong financial sector and an expanding tech center produce solid job gains. Employment opportunities are contributing to the population expanding at a rate double that of the U.S. and the added residents will create almost 22,000 households, generating a need for additional housing. To meet the increased demand, apartment deliveries rose above the five-year average last year, yet vacancy continued to tighten. This year, the multifamily construction pipeline thins, further lowering vacancy and driving apartment rents higher. After multifamily investors concentrated in the urban cores during recent years, rising construction and land costs, as well as the need for cost-conscience rental options, drew them farther from the central cities. During 2020, the western portion of Pasco County will receive its largest inventory supply since 2002 with more than 660 apartment units scheduled for delivery. Throughout the market, rising rents are generating robust demand for lower-cost housing. Vacancy in Class C multifamily units has sat below 3 percent for more than a year, producing sizable apartment rent growth. Investors looking to purchase multifamily property in the Tampa market should definitely look into taking out an apartment loan to finance their acquisition.
Economic and demographic gains draw attention to apartment assets. Lower entry costs and cap rates that average roughly 80 basis points above nearby Orlando are luring more out-of-state capital to the market. Yield-driven multifamily investors will find initial returns above the metro average in older Class C apartment properties with less than 50 units in neighborhoods outside the urban core including University Square. Many other buyers are seeking value-add apartment prospects. Multifamily buildings that can readily be upgraded and amenities improved to raise rent to market rate are desired but are scarce as a large number of assets have already been renovated. Investors seeking a steady cash flow may find opportunities in the Temple Terrace area, where vacancy rests below 4 percent, producing healthy rent growth. A lack of new multifamily inventory in this neighborhood during 2020 should keep rental demand strong, especially as employment growth along the Interstate 4 corridor flourishes. Tampa is a great market for investors to finance their next apartment purchase with a multifamily loan.
2020 Tampa Apartment Market Forecast
The Tampa National Multifamily Index Rank is at 5, up 7 places. Tampa surges into the top five in the 2020 NMI as vacancy tightens and unit pricing climbs.
Employment in Tampa is up 1.7%. During 2020, employers will add 23,600 workers to payrolls, slightly lower than last year’s 1.8 percent increase.
Construction in Tampa is expected to exceed 3,100 apartment units. Deliveries decline sharply from the 5,600 rentals placed into service in 2019 as 3,100 apartments are completed this year, the lowest annual level in seven years.
Vacancy in Tampa is down 30 bps. The drop in new inventory reduces vacancy to 4.2 percent at the end of 2020, the tightest year-end rate of the current cycle.
Rent in Tampa is up 5.7%. Following a 5.3 percent hike last year, the average effective rent will end 2020 at $1,323 per month. Rents have soared roughly 35 percent over the past five years.
Investment opportunities in Tampa remain strong for those looking to finance their next purchase with an apartment loan. Higher cap rates than the Orlando or Miami metro’s coupled with favorable demographic and operational trends will put Tampa Bay on more investors’ radar this year. We highly recommend any investors looking to buy in the Tampa 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.
Tampa Apartment Loan Options
Tampa Freddie Mac Apartment loans
Tampa 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.
Tampa Fannie Mae Apartment loans
The Tampa Fannie Mae multifamily loan platform is one the leading sources of capital for Tampa 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).
Tampa 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.
Tampa 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:
- Tampa 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.
Tampa Apartment Building Loans
• East Tampa • Gandy-Sun Bay South • Sulphur Springs • Lowry Park Central • Tampa Palms • Temple Park • University Square • Northeast Macfarlane • Temple Crest • Wellswood • Plaza Terrace • North Hyde Park • Old Seminol Heights • Forest Hills • Tampa Heights • Seminol Heights • Hunters Green • Bayshore Beautiful • Bayside West • North Tampa • Davis Island • Old West Tampa • Ybor City • Ballast Point • South Seminol Heights • Beach Park • Palma Ceia • Oakford Park • Riverside • Sunset Park • Interbay • Fairoaks • Virginia Park • Port Tampa City • River Grove • Courier City • Tampa International Airport Area • Orient Park • Live Oaks Square • Rattlesnake • Riverside Heights • Bon Air • West Meadows • Palmetto Beach • Rio Bravo