West Palm Beach Apartment Loans
Loans from $1 Million to $25 Million+
|West Palm Beach Apartment Loan Rates Over $6,000,000||Rates (start as low as)||LTV|
|Apartment 5 Year Fixed Loan Rates||4.33%||Up to 80%||Get Free Quote|
|Apartment 7 Year Fixed Loan Rates||4.39%||Up to 80%||Get Free Quote|
|Apartment 10 Year Fixed Loan Rates||4.49%||Up to 80%||Get Free Quote|
|West Palm Beach Apartment Loan Rates Under $6,000,000||Rates (start as low as)||LTV|
|Apartment 5 Year Fixed Loan Rates||4.46%||Up to 80%||Get Free Quote|
|Apartment 7 Year Fixed Loan Rates||4.52%||Up to 80%||Get Free Quote|
|Apartment 10 Year Fixed Loan Rates||4.62%||Up to 80%||Get Free Quote|
Select Commercial has excellent West Palm Beach Apartment loan products and options available for owners and purchasers of multifamily properties throughout the city of West Palm Beach. 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. West Palm Beach 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 West Palm Beach 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.
West Palm Beach Apartment Loan Benefits
West Palm Beach Apartment Loan rates start as low as 4.33% (as of May 16th, 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
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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!"
West Palm Beach Apartment Loan Types We Serve
If you are looking to purchase or refinance a West Palm Beach apartment building, don't hesitate to contact us. We arrange financing in the city of West Palm Beach 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
West Palm Beach 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
2021 West Palm Beach Apartment Market and Trends
After the Covid- 19 pandemic, the West Palm Beach multifamily market is beginning to recover in 2021. Employment is expected to increase 6.4 percent this year. That is an increase of 39,000 jobs in 2021 which should offset a significant number of jobs lost during the pandemic. About 3,650 new units are set to be completed in 2021. This amounts to about 3.1 percent of the current inventory. Vacancy rates in West Palm Beach are expected to decrease in 2021. They should fall to about 3 percent, or a decrease of about 160 basis points. Rents are expected to increase 9.6 percent in 2021 in West Palm Beach. The average effective rent in 2021 should hit $1,872 per month. As vaccine rollouts continue in 2021 and the economy continues to open up, the West Palm Beach multifamily market in 2021 should continue to heat up.
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
Wave of New Residents Relocate to Palm Beach County, Bolstering Apartment Rental Demand
Revitalized corridors and steady hiring support multifamily rental demand. Florida’s favorable tax structure and a warm climate make Palm Beach County a haven for retirees, leading to some of the strongest in-migration trends in the nation this year as slightly over 30,000 will move to the county. On top of robust growth of the 65 and older cohort, the market has become increasingly attractive to young professionals as West Palm Beach continues to draw more major companies and tech firms. The 20- to 34-year-old cohort, a substantial driver to the apartment sector, is anticipated to grow at a greater rate here than the rest of South Florida as revitalized areas of the market, modern apartment rentals and job opportunities beckon new residents. In response to healthy demographics and stable multifamily rental demand, apartment developers remain active in the market as they were underway on nearly 4,000 apartment units at the onset of 2020. Boynton Beach and Delray Beach are prime targets of new multifamily development for their rapidly transforming downtown districts along with recording balanced supply gains this cycle. Investors looking to purchase multifamily property in the West Palm Beach market should definitely look into taking out an apartment loan to finance their acquisition.
Favorable yield profile and strong demographics fuel multifamily investment activity. Investor appetite for multifamily assets will remain vigorous this year as stable vacancy and moderate apartment rent gains support acquisition targets. Recently recorded going-in cap rates in Palm Beach County were in the lower-6 percent territory on average, the highest in South Florida, which may encourage capital migration to the market as multifamily buyers pursue higher yields. Boynton Beach, Greenacres and the Palm Beach Gardens/Jupiter area will be a primary focus as first-year yields here are in the low-6 percent to low-7 percent range. As many apartment assets have traded this cycle and pricing expectations are high, buyers will need to position aggressively as there is a shortage of available apartment properties that meet investment goals. A wave of new multifamily supply should provide more opportunities as merchant builders deliver stabilized properties. West Palm Beach is a great market for investors to finance their next apartment purchase with a multifamily loan.
2020 West Palm Beach Apartment Market Forecast
The West Palm Beach National Multifamily Index Rank is at 34, up 2 places. Stalwart job creation moves West Palm Beach up in the Index, yet a climb in vacancy holds it in the bottom half.
Employment in West Palm Beach is up 1.6%. Nearly 11,000 jobs will be created this year, down from the 2.3 percent pace of growth as the labor market tightens.
Construction in West Palm Beach is expected to exceed 1,900 apartment units. Deliveries trend upward from the 1,200 units completed in 2019, though they lag behind the previous five year average.
Vacancy in West Palm Beach is up 30 bps. The vacancy rate climbs to 4.8 percent in 2020 with net absorption of 1,450 apartment units trailing supply growth. An 80-basis-point decline was registered last year.
Rent in West Palm Beach is up 3.6%. Rising vacancy slows rent growth from the 4.7 percent gain posted last year, climbing to $1,720 per month in 2020.
Investment opportunities in West Palm Beach remain strong for those looking to finance their next purchase with an apartment loan. Investor interest in older, well-maintained properties that cater to a growing middle-income class of renters will fuel sales activity, but competition for available assets will be substantial. We highly recommend any investors looking to buy in the West Palm Beach 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.
West Palm Beach Apartment Loan Options
West Palm Beach Freddie Mac Apartment loans
West Palm Beach 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.
West Palm Beach Fannie Mae Apartment loans
The West Palm Beach Fannie Mae multifamily loan platform is one the leading sources of capital for West Palm Beach 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).
West Palm Beach 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.
West Palm Beach 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:
- West Palm Beach 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.
West Palm Beach Apartment Building Loans
Audubon, Bonnycastle, Hawthorne, Cherokee Triangle, Avondale Melbourne Heights, Rock Creek Lexington Road, Belknap, Gardiner Lane, Hikes Point, Crescent Hill, , Shawnee, Portland, Old Louisville, Russell, Crescent Hill, Beechmont, Algonquin, Taylor Berry, Audubon, Bon Air.