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Value Add Multifamily

Value Add Multifamily Loans

Unlock Upside with Value-Add Multifamily Financing

Value-Add Loans are powerful financing tools designed to breathe new life into apartment buildings.  Multifamily investors can unlock property value by facilitating property improvements and renovations.

Value Add Multifamily Loans
  • High leverage: LTV ratios of up to 85% allow borrowers to maximize loan proceeds for renovations.
  • Interest-only structure: During the renovation phase, investors focus on project completion without the pressure of principal payments.
  • Non-recourse loans: Personal liability is limited to the collateralized property, mitigating financial risk.
  • Competitive rates: Attractive loan terms make the program cost-effective.

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Our advisors can help qualify your property and recommend programs that can best meet your needs.

BEFORE and AFTER Renovation

Value Add Loans for Multifamily Apartments

One of the program’s key features is its flexibility, allowing investors to customize their renovation plans according to the unique needs and characteristics of their properties. Whether it’s upgrading amenities, modernizing interiors, or implementing energy-efficient solutions, the program provides the financial resources and support necessary to execute these improvements effectively.

Let’s delve into the program’s features and explore how it can benefit investors looking to maximize their multifamily assets.

Targeted Upgrades, Big Impacts:

Unlike traditional loans, Value-Add programs cater to properties with planned improvements of $10,000 to $25,000 per unit. This sweet spot allows investors to address key areas like:

  • Modernized interiors: Think upgraded appliances, refreshed cabinetry, and contemporary bathroom fixtures.
  • Enhanced amenities: Community spaces, fitness centers, and resident lounges can attract and retain tenants.
  • Curb appeal: Facade improvements, landscaping upgrades, and energy-efficient measures can boost property value significantly.

Value Add Loan

Perfect for moderate upgrades, with a three-year term (extendable) and full-term interest-only payments. Allows for wide variation in borrower term and structure needs.
 

Moderate Rehabilitation Loans

For more extensive renovations ($25,000 - $60,000 per unit), with a two-phase structure (renovation and permanent) and flexible financing options.
 

Unlock Value, Empower Communities:

The Value-Add program creates a win-win situation. Investors benefit from increased property value, rental income, and marketability. Tenants enjoy upgraded living spaces and enhanced amenities, fostering a sense of community. This leads to better rental income and less tenant turnover.

Additionally, the program indirectly supports affordable housing by revitalizing under-served areas and attracting residents who may have been priced out of newer developments.

If you’re considering a value-add multifamily project, contact us.  With the right financing in place, you can unlock the hidden potential of your multifamily property and achieve long-term success.

Benefits of Value-Add Financing

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