as demand grows, seize the opportunity
scaling with multifamily
If you’re looking to purchase or refinance a multi-family real estate property — comprised of 5 or more units — in need of value-add rehab or currently turnkey ready, our Multifamily loan solutions get the job done.
Apex Capital provides industry leading solutions, requiring a low down payment, and the ability to roll fees and closing costs into loans. Providing you with the flexibility and leverage to capitalize on multi-family real estate investment opportunities nationwide, whether it’s a value-add project or a short-term hold for seasoning purposes.
The Multifamily investment process
A multifamily real estate investment strategy can potentially create consistent and steady cash-flow for investors.
value-add
For investors buying distressed multifamily properties that need capital expenditures and rent increases to stabilize and bring value to current market standards.
Stabilized
For turn-key tenant properties that need seasoning or a fast closing. And/or further tenancy before long term takeout.
Long-term
Financing for investors looking to hold and cash out their stabilized multifamily property for the long term.
Our process allows us to tailor a loan to meet your specific investment strategy – Here is our breakdown.
|
Transaction Size |
$150k - $70M |
|
Transaction Types |
Acquisition | Rehab | Rate/Term Refinance | Cash-Out Refinance | Repositioning |
|
Interest Rate |
Starting at 3.5% |
|
Term Lengths |
3 - 6 Months | 5, 7, 10 and 30-Year Options with Multiple Deal Structure Options (ARMS, Interest Only, Fixed, Fully Amortized) |
|
Leverage Up To
|
85% LTC (purchase + rehab) |
|
Credit Score |
610 |
|
Asset Classes |
5+ Units (Class A, B and C) |
|
Closing Timeline |
Deal Specific |
|
Demographics
|
Nationwide |
|
Key Highlights |
Non-Recourse | No Prepayment Penalties | Primary, Secondary & Tertiary Markets | Foreign Investors | Workforce & Affordable Housing | Closing Costs Rolled |
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DEMAND FOR MULTIFAMILY IS OUTPACING SUPPLY
Aging Baby Boomers and the large Millennial generation are driving demand for multifamily. These older and younger adults prefer the flexibility renting provides over home ownership.
Multifamily opportunities
In 2019 over $190B in multifamily properties were sold, making it the largest of the four main commercial real estate classes by transaction volume (multifamily, retail, office, and industrial).
The growing demand for multifamily housing combined with low supply has resulted in increasing rental rates and low vacancy.
TAX TREATMENT
Multifamily is a favored investment type in commercial real estate due to reduced depreciation schedules (27.5 years v. 39 years).
CASH-FLOW POTENTIAL
why invest in multifamily?
Over the 25-year period from 1992 through 2017, multifamily real estate provided the highest average annual total returns of any commercial real estate sector with the second lowest level of volatility, according to research cited in a 2018 report by CBRE, the world’s largest commercial real estate investment firm.
Attractive, risk-adjusted returns and relatively low volatility
Healthy demand and favorable demographic outlook per research cited in a 2017 Apartment Demand report by NMHC and NAA
Shorter lease terms may allow for faster rent increases and tenant diversification
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WHY IS RENTING BECOMING MORE POPULAR?
Renters consist of the two largest generations in the U.S. – Baby Boomers who are downsizing as they enter retirement, and Millennials who have recently entered the workforce. The demographic breakdown below shows research cited from a 2017 Apartment Demand report by NMHC and NAA.
75MM
ADULTS 18-34 ENTERING THE RENTAL MARKET
60%
INCREASE IN ADULTS 45+ RENTING IN THE LAST DECADE
20%
U.S. HOUSEHOLDS ARE MARRIED COUPLES WITH CHILDREN
