Property Manager · Kenmore, WA · Member since 2016 · 37 posts · 9 votes
Hello there,
Good morning! Hope you are having a great day so far!
I am looking at a deal to purchase a land in downtown Seattle and build a 40+ units apartment. My business partner and I will invest some of our own money and will get a few investors, who already show strong interest in this.
I have 6 years experience in real estate, although not in developing. My business partner has recently developed a student housing complex in Queen Anne.
Do you have any good referrals for the loan for the land acquisition and construction?
Commercial Loan Officer · Southern Maine, ME · Member since 2009 · 782 posts · 415 votes
9y
Building multifamily properties is generally the territory of local banks. HUD has a good multifamily program or larg(er) dollar projects, and the terms are unbeatable, but the closing times are generally prohibitive as it can take 9+ months to close. Outside of HUD, your best bet is going to be local lender who is interested in deploying their funds in their lending footprint. If the project has merit, you should be able to get a bank to offer a construction to perm loan.
Commercial Loan Officer · Southern Maine, ME · Member since 2009 · 782 posts · 415 votes
9y
Building multifamily properties is generally the territory of local banks. HUD has a good multifamily program or larg(er) dollar projects, and the terms are unbeatable, but the closing times are generally prohibitive as it can take 9+ months to close. Outside of HUD, your best bet is going to be local lender who is interested in deploying their funds in their lending footprint. If the project has merit, you should be able to get a bank to offer a construction to perm loan.
Lender · Nat'l Commercial Mtg Lender - Round Rock, TX · Member since 2014 · 916 posts · 235 votes
9y
@Nick He as Darryl Dahlen said HUD is a great product because construction is in the high 3's on a 40 year term with a 40 year amortization. The product is great if you want to sell it and the buyer wants to assume the mortgage. With the HUD product you can draw from the escrow account 2 times a year and the property has to reviewed on annual basis. There are other commercial products out there if your project is $25MM+ which can allow up to 85% to 90% with a first and an equity partner.
Houston, TX · Member since 2016 · 92 posts · 21 votes
9y
Nick: I can definitely help you with that as well. I own a debt and equity firm that focuses only on commercial and multifamily real estate. There are a ton of sources for financing your project. Not only HUD and local banks, but life insurance companies, investment banks, and more. Where's the project? Is it near Pike Market Place? Send me a PM or colleague request. I would be glad to discuss.