Apartment Bridge Loans
Select Commercial is pleased to introduce its new nationwide apartment bridge loan program.
The effects of the last recession left a lasting impact on many commercial real estate markets. Many properties today are still underperforming or have maturing mortgage debt in excess of today’s available loan to value ratios. These properties may need expert restructuring and turn around in order to be refinanced in today’s market. At Select Commercial, we are able to provide short-term apartment bridge loans to aid the owners and purchasers of underperforming and un-stabilized properties.
Our apartment bridge loans offer quick closings and may be used to acquire a property in foreclosure, lease-up an underperforming property, allow a borrower to take advantage of a discounted payoff, refinance a maturing loan, reposition a property, rehab a vacant property, pay back taxes and liens, meet seasoning requirements, meet tight closing deadlines, or take cash for tenant improvements.
Our apartment bridge loan program is available in major markets nationwide with a minimum loan size of $1,500,000. We offer these loans for both commercial and multifamily properties. Our loans may be available with non-recourse to the borrower and we may offer interest only payments. Our loan program can be used to help a borrower to position a property for permanent long-term financing in the future.
Some examples of our apartment bridge loan include:
A real estate investor has the opportunity to purchase a foreclosure property for a substantial discount. He needs to close fast and cannot wait 60+ days to close.
Thanks to a short term loan from Select Commercial, the borrower is able to buy this property.
A borrower is offered a significant discount to pay their mortgage off early.
A mortgage from Select Commercial allows the borrower to complete this transaction.
An investor seeks to purchase an apartment building with a low occupancy rate. The property is not stabilized and he is advised by his bank that he needs a higher occupancy rate in order to qualify.
With financing from Select Commercial the investor is able to purchase the property, and use some of our cash to upgrade the property and increase the occupancy. Six months later the property is stabilized and ready for long-term low-rate financing.
To learn more about a loan from Select Commercial, please call us today at 877-548-9454.
Benefits of our Apartment Bridge Loan program
• No upfront application or processing fees
• Simplified application process
• Up to 75% LTV on apartments and commercial properties
• Terms and amortizations up to 30 years – interest/only available
• 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!"
Apartment Bridge Loan Outlook for 2021 - Commercial Mortgage Rates
The COVID-19 pandemic seriously depressed the demand for apartment living space across the Unites States. One of the biggest factors that directly impacts apartment demand and household formation is a given market’s availability of jobs. The pandemic caused many people to be out of work and many other people to work remotely. Consequently, many prospective tenants such as new graduates lived with their parents or friends. With increased hiring in 2021 and many people returning to their in-office jobs, there has been a big rise in the demand for nationwide apartment housing. As more and more young graduates can return to work, this trend should continue throughout 2021. Commercial mortgage rates for apartment buildings have been at all-time lows throughout 2021 and experts don’t anticipate them to go up soon. The office and retail sectors did not fare so well in 2020 due to the pandemic. Many businesses shut down, brick and mortar retail shops had a hard time doing business and many companies implemented work from home policies. Many lenders were very conservative when considering commercial mortgage applications for these sectors. With vaccinations increasing and many states removing restrictions, business profitability has risen throughout 2021. In 2021, we are seeing companies hiring again after a dismal 2020. During 2021, it is estimated that more than 6.5 million workers will be added to company payrolls, many of them needing office space. Commercial mortgage lenders are not extremely bullish on the office sector and commercial mortgage rates, while attractive, are not as low as some other asset classes. Meanwhile, we are not seeing commercial mortgage lenders lend aggressively on retail properties in 2021. While the loans that lenders do fund may be at lower commercial mortgage rates, they aren’t as low as other asset classes and borrowers are having a difficult time obtaining high leverage loans in 2021.
Industrial properties are emerging well positioned from the pandemic and are expected to perform well in 2021 and beyond. The rapid growth of e-commerce, especially during the pandemic, is causing strong demand for industrial and warehouse space. 2021 has been a strong year for industrial absorption and sales prices of suitable industrial space has skyrocketed. Industrial properties currently are receiving very attractive commercial mortgage rates as this market is receiving a lot of attention. Experts believe that close to $578 billion of commercial mortgages and multifamily loans will be funded in 2021. This is over a 30% increase from 2020’s volume of $442 billion. As commercial mortgage rates remain at all-time lows, 2021 is a great time for prospective borrowers to look for commercial mortgage loans. Right now in 2021, commercial mortgage rates can be in the high 2% range for qualified properties and borrowers. Apartment loans above $6 million can qualify for rates in the mid- high 2% range while apartment loans below $6 million are generally being underwritten in 2021 in the low to mid 3% range. Many lenders are financing commercial mortgage loans for other asset types in the low to mid 3% range as well in 2021. Check out our low commercial real estate loan rates and use our commercial mortgage calculator to calculate monthly principal and interest.
With regard to apartment bridge loans, availability of mortgage capital and interest rates in 2021 will be determined by the property type and the location of the property. Borrowers seeking apartment bridge loans for an apartment building in a prime location, with experienced developers, will find it much easier to secure attractive apartment bridge loans. On the other hand, developers looking for a bridge loan to develop retail or office properties, or properties located in tertiary markets will find less availability of funds, lower loan to value ratios and higher rates. In 2021, property type and location have been key, with apartments being the easiest properties to finance due to the current demand for affordable housing.