With coronavirus concerns fueling interest rate cuts, multifamily borrowers are attempting to capitalize.

Long-term interest rates are lower than they have ever been—and owners of apartment properties are rushing to take advantage by refinancing into low-interest loans.

“There is a massive wave of interest in refinancing,” says Rick Salinas, director of JLL’s San Francisco office. “These are essentially some of the lowest interest rates on record.”

Worries about the rapidly-spreading coronavirus (COVID 19) are contorting the financial markets, driving down interest rates. The panic is creating a huge opportunity for the owners of apartment properties to refinance the loans on their properties.

“It’s both exciting and a little unnerving,” says Mitchell Kiffe for CBRE. “Debt providers have been incredibly busy.”

Interest rates fall disturbingly low

A typical apartment property can now get a 10-year loan from a Freddie Mac or Fannie Mae lender that covers 70 percent of the value of a property with a fixed interest rate of 3 percent or less. Better sponsors might get rates as low as 2.75 percent. “A month ago interest rates were probably 50 basis points higher,” says Kiffe.