Baltimore Commercial Mortgage Loans
Baltimore Commercial Mortgage Rates - Rates updated February 27th, 2021
|Loan Product||Rates (start as low as)||LTV|
|Multifamily Mortgage Rates (Over $6,000,000)||2.63%||Up to 80%||Get Free Quote|
|Multifamily Mortgage Rates (Under $6,000,000)||3.22%||Up to 80%||Get Free Quote|
|Single Tenant Lease Rates||3.05%||Up to 75%||Get Free Quote|
|Business Real Estate Loans||3.30%||Up to 90%||Get Free Quote|
|Commercial Mortgage Rates||3.55%||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 Baltimore. 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. Baltimore 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 Baltimore 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.
Baltimore Commercial Mortgage Benefits
Baltimore commercial mortgage rates start as low as 2.63% (as of February 27th, 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!"
Baltimore Multifamily Loan Information
Stalwart Employers Underpin Historically Low Multifamily Vacancy; Investors Find Comparative Advantage in Baltimore
Apartment vacancy drops to multiyear low amid moderated construction pipeline. Baltimore’s well-regarded educational institutions and healthcare providers, comprising about a fifth of the labor force, continue to hire thousands of personnel per year. These new job opportunities are supporting the formation of additional households, contributing to a steady increase in apartment rental demand that will drop vacancy to 4.3 percent in 2020. The number of multifamily units available has not fallen much below this threshold since 2000 when vacancy was 2.6 percent. Operations are also benefiting from a more modest apartment construction pipeline. Except for 2019, fewer units will come online in 2020 than during any other year since 2011. While not as many apartments will open within the city of Baltimore as previous years, a handful of large-scale projects are slated to deliver in surrounding towns. Multifamily projects with more than 300 units apiece will be finalized in the suburban settings of Ellicott City, Columbia and Towson, where demand for the new supply is underscored by below-market vacancy rates. This dynamic is also leading to above-market average apartment rent growth, contributing to a metro-wide appreciation in effective rates similar to 2019. Baltimore is a terrific place for investors to take out apartment loans to make their next apartment purchase.
Regionally high yields and low entry costs have prompted investors to consider buying in Baltimore and to look for multifamily loans to finance their acquisitions. Transaction velocity continues to trend higher in Baltimore as both local and out of market investors find the metro to be a stable, lower-cost alternative to other major Northeast cities. Sales here have cap rates that average in the low-6 percent zone are also 100 basis points or higher than in the nearby gateway markets. Buyers are focusing on the same areas of Baltimore that have received attention in the past, namely downtown and in the northwest part of the city. Trades tend to occur in neighborhoods with above-average income levels, involving renovated Class B and C apartment properties that cater to young professional renters. While multifamily listings are few in Anne Arundel and Howard counties, there is also ample investor demand, reflected in above market per unit sales prices. Baltimore appears to be a great market for investors to finance their next multifamily purchase with a multifamily loan.
2020 Baltimore Multifamily Market Forecast
Baltimore’s National Multifamily Index Rank is at 41, up 3 places. Vacancy declining below the U.S. rate and a higher average cap rate raise Baltimore’s standing in the 2020 NMI.
Employment in Baltimore is up 0.6%. Approximately 8,900 jobs will be created in 2020 as total employment growth slows from the 1.1 percent recorded last year.
Construction of apartments in Baltimore is expected to exceed 2,200 units. Baltimore’s apartment inventory will expand by a modest 1.0 percent in 2020 as annual completions fall below the cycle average of 2,600 units.
The vacancy rate in Baltimore is down 10 bps. The net absorption of apartments will just surpass supply additions to lower the vacancy rate to 4.3 percent this year. In 2019, availability fell 80 basis points.
Apartment rent in Baltimore is up 3%. Fewer deliveries compared with earlier in the decade and sub-5 percent vacancy will both help to raise the average effective rent to $1,391 per month in 2020 following a 3.3 percent increase last year.
Baltimore remains a very strong city for apartment investments. Out-of-market investment into Baltimore is trending higher as buyers are obtaining assets in urban areas at higher yields and lower entry costs than in their home metros. This is a really good place for investors to look into obtaining apartment loans to acquire their next multifamily property.
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.
Baltimore 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 Baltimore 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.
Baltimore Commercial Mortgage Loans
• Inner Harbor • Clifton Park • Bellona-Gittings • Federal Hill • Brewers Hill • Biddle Stree • Downtown • Carroll-Camden Industrial Area • Cameron Village • Canton • Barclay • Cedonia • Felis Point • Dorchester • Garwyn Oaks • Mount Vernon • Bolton Hill • Tipton County • Carroll Park • Cedarcroft • Franklintown