Atlanta Commercial Mortgage Loans
Atlanta Commercial Mortgage Rates - Rates updated August 9th, 2020
|Loan Product||Rates (start as low as)||LTV|
|Multifamily Mortgage Rates (Over $5,000,000)||2.60%||Up to 80%||Get Free Quote|
|Multifamily Mortgage Rates (Under $5,000,000)||3.38%||Up to 80%||Get Free Quote|
|Single Tenant Lease Rates||3.50%||Up to 75%||Get Free Quote|
|Business Real Estate Loans||3.60%||Up to 90%||Get Free Quote|
|Commercial Mortgage Rates||3.80%||Up to 75%||Get Free Quote|
Select Commercial is a leading commercial real estate lender. We have excellent commercial mortgage loan products and options available for owners and purchasers of commercial real estate and multifamily buildings throughout the city of Atlanta. While we lend across the entire continental United States, we are able to give our best rates and loan programs to certain areas that we feel are strong markets. Atlanta is one of the cities that we consider to be a premium market and we actively look to originate good quality loans here for our clients. We have a diverse array of many available loan products to help qualified Atlanta borrowers looking to purchase or refinance a commercial property. If you are looking to obtain a multifamily building loan or commercial real estate loan, don't hesitate to contact us. There are many reasons why our customers like doing business with Select Commercial. We have a simplified application process and we do not charge any upfront application or processing fees. We typically offer 24-hour pre-approvals with no-cost and no-obligation. Our long term fixed rates are excellent, and we look to close within 45 days of application.
Atlanta Commercial Mortgage Benefits
Atlanta commercial mortgage rates start as low as 2.60% (as of August 9th, 2020)
• No upfront application or processing fees
• Simplified application process
• Up to 80% LTV on multifamily, 75% on commercial (90% with SBA)
• Terms and amortizations up to 30 years
• Loans for purchase and refinance, including cash-out
• 24 hour written pre-approvals with no cost and no obligation
Recent TRUSTPILOT Reviews
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!"
Atlanta Multifamily Loan Information
Workforce Housing Within the Perimeter Generating Large Rent Gains, Captivating Yield-Driven Investors
Continuing revitalization keeps Class B/C apartment demand high. Redevelopment projects underway throughout the metro are expanding the construction labor pool, which has grown by the fastest rate amongst job sectors in Atlanta over the past three years. Revitalization efforts are highlighted by the Centennial Yards project downtown, which will convert 50 acres of rail space into 12 million square feet of mixed-use development. A project of this scale will require a large volume of construction workers, many of which will seek apartment housing aligned with their budget. With multifamily rental costs near the site out of reach, they will often look farther west for residences within the Perimeter. Here the average Class C apartment rent is rising at an accelerated pace, and as the unit type is the predominant beneficiary of this demand boost, tightening vacancy will continue to appreciate rent. Metro wide, employment gains in working-class fields are contracting Class B/C multifamily vacancy into the mid-4 percent area as median home costs are rising at a faster pace than the national level, prompting many to choose budget-friendly apartment rentals. Atlanta is a great city for investors to look for apartment loans to finance their multifamily acquisitions.
Out-of-state capital following urban revival patterns. Efforts to rejuvenate transitioning neighborhoods via opportunity zone projects has investors strategically deploying capital for assets with yield-appreciation potential. Suburbs inside of the perimeter near east Interstate 20 receive the largest volume of trading activity, with out-of-state interests concentrating primarily on Class C apartments built pre-1980. Here, these have often carried per multifamily unit entry costs below $70,000 with first year returns in the 5 to 6% range. Additionally, large-scale apartment complexes west of the airport along Interstate 285 are piquing some institutional interest. Multiple 300-plus multifamily unit properties traded over the recent months for prices between $20 million and $30 million, with average cap rates in the mid-5 percent tranche. Within the core, institutional investors are homing in on luxury assets near the Atlantic Station area, where initial yields have been near 4 percent on average. They are looking for multifamily loans to finance these apartment properties in Atlanta.
2020 Atlanta Multifamily Market Forecast
National Multifamily Index Rank 15, up 3 places. Rent growth above the national average and tightening vacancy move Atlanta up in this year’s Index.
Employment in Atlanta is up 1.7%. Employment gains are comparable to the 1.8 percent advance logged in 2019, with 48,000 roles added this year.
Construction of apartments in Atlanta is expected to exceed 9,800 units. Developers will finalize more rentals than the 9,500 units added in the previous year, yet the 2020 composite falls 300 apartments shy of the trailing-three-year annual average.
Vacancy in Atlanta multifamily is down 20 bps. Net absorption of more than 10,000 units contracts vacancy for the third consecutive year, down to a cyclical low of 4.6 percent.
Atlanta apartment rents are up 5.9 percent. The average effective rent reaches $1,360 monthly as the annual growth margin exceeds 5 percent for the eighth straight year.
Investments in Atlanta apartments are very strong. Capital migration will intensify as out-of-state investors eye value-add assets near opportunity zones. These locales will be more heavily targeted than the core, as lower entry costs allow the potential for greater yield gain. These are the perfect areas for investors to look for apartment and multifamily loans in Atlanta.
Data provided by Marcus & Millichap.
Commercial Mortgage Rate Trends in 2020
At the beginning of 2020 the overall market outlook did not suggest any crucial factors that would negatively impact the commercial mortgage market. Commercial mortgage lenders and investors expected a very profitable 2020. Almost 65 percent of the top commercial real estate companies believed that commercial mortgage loan originations would go up this year and over 15 percent anticipated an overall rise of over 5 percent. Data released at the beginning of 2020 indicated that commercial mortgage lenders were expected to close over $680 billion of commercial mortgage loans this year. Experts were of the belief that commercial mortgage lenders would remain bullish about making loans. In addition, as commercial mortgages rates were expected to go down most industry leaders were convinced that borrowers in 2020 will have a strong desire to take out commercial mortgage loans. However, with the recent outbreak of the Covid-19 pandemic, the US and global economy has been incredibly unstable. The stock market seems to be bottoming out and commercial mortgage rates have been hit very hard. While the Fed has dropped short term interest rates, long term commercial mortgage rates have actually been rising. Huge cities like New York are shutting down. In this economic climate, many investors are scared to purchase commercial real estate and to take out commercial mortgages. Additionally, the oil industry has been hit hard. Not only are people traveling less due to coronavirus, China and Russia are currently involved in a price war which is driving the price of oil way down. Many people are optimistic that as spring and summer roll in and public health officials learns how to handle this pandemic, the economy should regain its strength.
What Happened with Commercial Mortgage Rates in 2019
As we review the 2019 year, the commercial real estate market continued to flourish as the longest economic recovery in American history continued. Due to both GDP growth and a steady decline in the unemployment rate, 2019 saw the stock market make huge gains. Many investors thought that commercial mortgage rates would go up last year. However, in actuality commercial mortgage rates actually went down three times. These interest rates helped to spur investors to put more money into commercial real estate. With regards to commercial mortgage loan origination, the 2019 fiscal year far exceeded expectations due to solid fundamentals, low interest rates and higher demand for commercial mortgages. While 2018 commercial mortgage volume totaled about $339 billion, an increase of 18.9% from 2017, the 2019 numbers total about $369 billion. On a larger scale, the 2019 economy prospered overall. Over the course of the year about 2.1 million jobs were added to the market. In addition, the unemployment rate decreased about 50 basis points last year, matching the lowest unemployment rate in fifty years. At the beginning of 2019 many investors were expecting a recession. However, the economy improved as job growth rose and the unemployment rate decreased. This economic improvement had an immensely positive impact on the commercial real estate market as more investors rushed to put their money into commercial properties.
Atlanta Commercial Mortgage Loan Options
Our staff is professional and knowledgeable, and we look forward to working with you on your next commercial mortgage transaction. We arrange financing in the city of Atlanta for the following:
- Multifamily Building Loans – we actively lend on garden apartments, high-rise multifamily buildings, student housing complexes, underlying cooperatives, and all other types of residential dwellings. We consider loan requests up to 80% LTV. We offer loans with and without recourse (personal guarantees) and with and without prepayment penalties. We offer fixed rate loans with terms from 3 to 30 years.
- Office Building Loans – we lend on all types of office properties, including multi-tenant and single tenant buildings in all locations. We lend on both owner occupied and investor properties. We typically lend up to 75% LTV on investor properties and up to 90% on owner occupied properties. Most loans are written for either 5, 7, or 10 years at a fixed rate with a 25-year amortization.
- Retail Building Loans – we gladly consider requests for commercial mortgage loans on shopping centers, retail strip centers, and individual retail stores. We are a little bit more conservative on retail loans these days based on the current climate for retailers and will consider LTV ratios of 65%-75% depending on the deal. We actively lend on NNN single tenant retail locations such as Starbuck’s, CVS, Walgreens, Dollar General, and other national credit rated tenants.
- Industrial Property Loans – we love to lend on warehouses, distribution centers, manufacturing facilities and other industrial properties. Often, these properties are owner occupied by the owner’s business. We also lend on multi-tenant industrial properties as well. We look for properties in good locations with access to population centers and transportation.
- Single/Special Use Loans – we have a special lending division that understands small business lending secured by owner occupied businesses such as motels, gas stations, restaurants, car washes, retail stores, and other specialty properties. Many banks have a hard time with this type of lending as they often do not understand the underlying businesses.
- Investment Property Loans – any and all income producing property will be considered. We are cash flow driven lenders and look for properties that generate positive cash flow for their owners. We will consider portfolios of single family residences under this group.
- Bridge Loans – many borrowers do not qualify for regular institutional financing due to various short-term obstacles which need to be resolved before they can qualify for bank type financing. These borrowers often require short term loans, or bridge loans, to overcome these short-term problems.
Atlanta Commercial Mortgage Loans
Ansley Park, Atkins Park, Atlantic Station, Berkeley Park, Blandtown, Cabbagetown, Candler Park, Castleberry Hill, Centennial Hill district, Druid Hills, East Atlanta, East Lake, Eastern Home Park, Edgewood, Fairlie-Poplar district, Five Points district, Georgia Tech and Technology Square, Grant Park, Home Park, Hotel District, Inman Park, Kirkwood, Knight Park/Howell Station, Lake Claire, Lindridge‑Martin Manor, Loring Heights, Luckie Marietta district, Marietta Street Artery, Morningside‑Lenox Park, Oakland, Old Fourth Ward, Ormewood Park, Peachtree Center, Peachtree Street, Piedmont Heights, Poncey-Highland, Reynoldstown, Sherwood Forest, SoNo, South Downtown, Summerhill, Sweet Auburn, Virginia-Highland, Western Home Park.