Austin Commercial Mortgage Loans
$1,000,000 Minimum

Austin Commercial Mortgage Rates - Rates updated May 17th, 2021

Loan Product Rates (start as low as) LTV
Multifamily Mortgage Rates (Over $6,000,000) 3.02% Up to 80% Get Free Quote
Multifamily Mortgage Rates (Under $6,000,000) 3.29% Up to 80% Get Free Quote
Single Tenant Lease Rates 3.52% Up to 75% Get Free Quote
Business Real Estate Loans 3.77% Up to 90% Get Free Quote
Commercial Mortgage Rates 3.77% Up to 75% Get Free Quote
Austin Commercial Real Estate Austin Commercial Mortgage

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 Austin. 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. Austin 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 Austin 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.

Austin Commercial Mortgage Benefits

Austin commercial mortgage rates start as low as 3.02% (as of May 17th, 2021)
• 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!"

Recent Closings

Austin Multifamily Loan Information

Austin Economic Trends Austin Economic Trends

Economic Core Shifting to North Austin Where ‘Silicon Valley’ Transplants Are Increasingly Prominent

Expanding tech presence ripples to all echelons of housing. The rapid job creation trend of this cycle faced headwinds in 2019, when the unemployment rate started the year below 3 percent. A diminished available labor supply is forcing employers to moderate hiring; however, the technology segment is maintaining its vigorous expansion in northwest Austin. Numerous Bay Area tech companies are establishing strongholds here, highlighted by Apple’s ongoing extension into a $1 billion facility. These companies continue to bring high-wage staff members into the metro, who often look toward luxury apartment rental housing options because of their location, amenities and flexibility. Consumer spending is also being enhanced as more high-wage jobs emerge in Austin, boosting the presence of retailers and service industry employers. The workforce tied to these industries will aid Class B/C multifamily leasing, holding vacancy tight in the 4 percent range. Austin is a great city for investors to look for apartment loans to finance their multifamily acquisitions.

Investors cognizant of surging apartment rents. Consistent inflow of an educated, young population to Austin has investors yearning for multifamily assets. The metro ranks near the top nationally in terms of both net migration and age 20-34 population growth, two key drivers of apartment demand. Amid the positive demographics of the locale, a high concentration of deals will be centered around vibrant central Austin neighborhoods near the university. Out-of-state apartment investors often deploy capital in excess of $30 million for newly built properties, where initial returns have been in the mid-4 percent range on average. Opportunistic multifamily investors will steer capital toward pre-21st-century-built assets in east Austin and midtown. Here, sales in the $1 million to $7 million tranche are frequently targeted, delivering initial first-year yields in the low-5 to mid-5 percent range. Institutional investors will concentrate on Class A multifamily assets in northwest Austin, where prices will be at a premium- but rental costs have the potential to surge. Austin is a top market in the country and a great place for investors to look into taking out multifamily loans to finance their next acquisition.

2020 Austin Multifamily Market Forecast

Austin Completions vs. Absorption Austin Completions vs. Absorption

National Multifamily Index Rank 30, up 4 places. Robust employment and apartment rent gains advance Austin in this year’s ranking.

Employment in Austin is up 2.3%. Job creation exceeds the 2.0 percent growth logged in 2019 as labor-shortage headwinds ease.

Construction in Austin is expected to exceed 9,200 apartment units. Deliveries will amass 9,000 multifamily units for the first time since 2016, with roughly 1,300 more rentals brought to market than the trailing-three-year annual average.

Vacancy in Austin is expected to rise 60 bps. A large influx of apartment deliveries overshadow commendable net absorption, pushing vacancy up to 5.2 percent.

Apartment rent in Austin is up 6.5%. Average effective rent reaches $1,400 per month by the end of 2020, growing by its largest annual margin in five years.

Investment in Austin apartments is strong. With cap rates compressed for core and north Austin assets, buyers searching for value-add will have to widen their search parameters. Suburbs far north will catch buyers’ eyes as the population sprawls to less dense regions. Austin is certainly a good market for investors to look for apartment loans to purchase their next property.

Data provided by Marcus & Millichap.

Commercial Mortgage Rate Trends in 2020

Austin Vacancy and Rents Austin Vacancy and Rents

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

Austin Sales Trends Austin Sales Trends

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.

Austin 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 Austin 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.
Our company has multiple capital sources for these loans, including: national banks, regional and local banks, Fannie Mae, Freddie Mac, FHA, HUD, insurance companies, Wall Street conduit lenders (CMBS deals), credit unions and private lenders/hedge funds. Whether you are purchasing or refinancing, we have the right solutions available. We will entertain loan requests of all sizes, beginning at $1,000,000. Get started with a Free Commercial Mortgage Loan Quote.

Austin Commercial Mortgage Loans

Select Commercial provides commercial mortgage loans and multifamily financing throughout Austin and the state of Texas including, but not limited to, the areas below.

• Hyde Park • Hancock • Holly • Barton Hills • Crestview • Downtown • St. Edwards • Windsor Road • Rosedale • Old West Austin / Clarksville • East Oak Hill • East Cesar Chavez • West Austin / Tarrytown • Bouldin Creek • North Loop • Allandale • Upper Boggy Creek / Cherrywood • Old Enfield • Brentwood