Boston Commercial Mortgage Loans
$1,000,000 Minimum

Boston Commercial Mortgage Rates - Rates updated June 23rd, 2021

Loan Product Rates (start as low as) LTV
Multifamily Mortgage Rates (Over $6,000,000) 2.57% Up to 80% Get Free Quote
Multifamily Mortgage Rates (Under $6,000,000) 3.17% Up to 80% Get Free Quote
Single Tenant Lease Rates 3.42% Up to 75% Get Free Quote
Business Real Estate Loans 3.67% Up to 90% Get Free Quote
Commercial Mortgage Rates 3.67% Up to 75% Get Free Quote
Boston Commercial Real Estate Boston 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 Boston. 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. Boston 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 Boston 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.

Boston Commercial Mortgage Benefits

Boston commercial mortgage rates start as low as 2.57% (as of June 23rd, 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

Boston Multifamily Loan Information

Boston Economic Trends Boston Economic Trends

Wave of Larger Projects Test Pent-Up Demand; Buyers Target Sizable Returns Outside Core Boston

Widespread absorption, strong apartment rent growth spur increased development. Consistent job creation by tech and biotech firms raised the number of high-paying positions in Boston over the past three years, generating demand for newly built multifamily units that command monthly rents in excess of $3,000. The metro also recorded robust competition for mid- and lower-tier rentals as a significant gap between Class A and Class B/C rents exists. Heightened leasing activity in each class over the previous three years reduced the overall market vacancy substantively, enabling the average effective apartment rent to push up 16 percent during the same time period. This year rising demand will fill more multifamily units than the number projected within the 2020 construction pipeline, which will be the largest apartment delivery recorded in the metro over the past two decades. With upcoming properties comprising an average of more than 300 apartment rentals, concessions usage will rise as short-term vacancy is tested. Still, strong rates of income growth and household formation should allow for most of these apartments to be absorbed in a relatively short time frame, holding metro vacancy in the 3 percent band. Boston remains a strong metro for investors to look for apartment loans to finance their next purchase.

Pricing near historical highs push private investors to expand targets. The strong performance of Boston’s multifamily sector has elevated asset values to near all-time highs. While opportunities to acquire larger multifamily assets are sparse, due to the notable REIT and pension fund ownership presence in the market, the chances to obtain smaller properties with upside potential remain distributed throughout the metro. In-state investors seeking centrally located Class B and C listings are active in Downtown Boston, Back Bay and Cambridge. In these locales, pricing below $500,000 per unit and returns beyond the 4 percent range have become difficult to obtain. Buyers priced out of the core have flocked to cities along the North Shore, where discounted pricing and 7 percent-plus returns are commonplace for lower-tier apartment complexes. This is a great area of Boston for investors to look for multifamily loans to acquire their next property.

2020 Boston Multifamily Market Forecast

Boston Completions vs. Absorption Boston Completions vs. Absorption

The Boston National Multifamily Index Rank is at 8th place this year as a strong rent gain offsets the tick up in vacancy.

Employment in Boston is up 0.7%. Building on last year’s 31,200 jobs, employers will add 20,000 workers to payrolls in 2020.

Construction of apartment units in Boston is expected to exceed 9,700 units. The pace of completions elevates by more than 3,000 units on a year-over-year basis in 2020, increasing the metro’s rental inventory by 2.4 percent.

Vacancy in Boston is up 40 bps. Nearly 8,000 rentals will be absorbed in 2020, yet the market vacancy will rise to 3.4 percent, ending a three-year stretch of declining unit availability.

Apartment rent in Boston is up 5.9%. Unwavering tenant demand will support a third consecutive year of strong rent growth, lifting the metro’s average effective rate to $2,550 per month.

Investment opportunities in Boston remain strong. Private investors seeking sub-$2 million assets in areas of tight vacancy and pronounced rent growth target listings in Boston’s northern outlying submarkets with access to Interstate 495. This is a great place for investors to take out apartment loans to finance their next property.

Data provided by Marcus & Millichap.

Commercial Mortgage Rate Trends in 2020

Boston Vacancy and Rents Boston 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

Boston Sales Trends Boston 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.

Boston 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 Boston 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.

Boston Commercial Mortgage Loans

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


• Arlington MA • Lawrence MA • Quincy MA • Attleboro MA • Leo Minster MA • Revere MA • Boston MA • Lowell MA • Salem MA • Bristol County MA • Lynn MA • Somerville MA • Brockton MA • Malden MA • Springfield MA • Brookline MA • Medford MA • Suffolk County MA • Cambridge MA • Methuen MA • Taunton MA • Chicopee MA • Middlesex County MA • Waltham MA • Essex County MA • New Bedford MA • Westfield MA • Everett MA • Newton MA • Weymouth MA • Fall River MA • Norfolk County MA • Worcester County MA • Fitchburg MA • Peabody MA • Worcester MA • Hampden County MA • Plymouth County MA • Haverville MA • Plymouth MA