California Commercial Mortgage Loans
$1,000,000 Minimum

California 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

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 state of California. 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. California is one of the states 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 CA borrowers looking to purchase or refinance a commercial property. If you are looking to obtain an 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. Our staff is professional and knowledgeable, and we look forward to working with you on your next commercial mortgage transaction.

California Commercial Mortgage Benefits

California commercial mortgage rates start as low as 3.02% (as of 05/17/21)
• 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

California Commercial Mortgage Loan Options

We arrange commercial mortgage financing in the state of California for the following:

  • Multifamily 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.

California Commercial Mortgage Information and Economic Overview

California’s economy is the largest in America with a gross state product of over $3 trillion.  If California were its own country, it would rank as the world’s 5th largest economy ahead of the UK. Additionally, California's Silicon Valley is home to some of the world's most valuable tech companies including Apple and Facebook and over 10% of Fortune 1000 companies are based in California. Per capita income in California was $58,272 in 2017, ranking 6th in the nation.
California has many favorable conditions for commercial real estate investors and economic opportunists looking to invest in the region. Here are some of the key factors that make California a desirable market for investors to expand and bolster economic portfolios:

  • California not only leads the country in GDP but is also one of the most stable and growing economies in America with a GDP growth rate of 2.9%.
  • California ranks first in the country in total Foreign Direct Investment with big investments from countries like China, Japan, the United Kingdom and the Netherlands.
  • California is the most visited state in the country.
  • California is the most populated state in America, accounting for over 12% of citizens nationwide.

Despite its high housing prices, California is still one of the best states to invest in commercial real estate now and in the future. California offers huge capital growth for investors and has many unique characteristics that make it enticing for anyone to look into commercial mortgage financing. Right now is a great time to invest in the multifamily and apartment building market in California. Homes in California are very unaffordable. The median home price in California is just under $525,000, a number out of reach for a large number of first-time home buyers. Therefore, these people decide to rent and not buy. Only 55% of California households own their homes, the 3rd lowest in the nation. This information leads to the conclusion that almost half the population are renters, meaning the rental demand is strong in the California real estate market.  As a result, a commercial real estate investor buying California multifamily and apartment buildings could profit from both rental yield and long-term appreciation. While California property will continue to be among the most expensive in the US, 2019 is expected to be more of a buyer’s market for investors. California multifamily properties and apartment buildings for sale are expected to stay on the market longer due to their high prices. As a result, commercial real estate investors have the ability to negotiate and get better deals than in the past. Experts even predict that sellers will lower their asking price to close deals! All of this data points to the fact that it is currently a great time to invest in multifamily buildings and apartment buildings. In terms of commercial mortgages, there are currently over 6.4 million mortgages for commercial real estate properties throughout California. The average value of these commercial mortgages is almost $5 million, 5% below the United States average. This information demonstrates that California is a great place to attain a commercial mortgage loan.

In particular, Southern California is one of the hottest and most sought after commercial real estate and multifamily markets. The first half of 2019 saw fewer sales than in recent years leading to an even larger increase in demand from buyer and capital to buy.  Both those that have a presence in Southern California want to expand their portfolios and others that do not have a presence are aggressively bidding on properties and apartment buildings to develop a presence in one of the most enticing markets in America. Investors are lured in by the quality of investment stability, steady returns they find throughout Southern California. They believe that the region is well suited to deal with a correction that could possibly occur at some point in the future and they also like the renter demand drivers. Job growth remains strong through the region, and people who are attracted to the Southern California quality of life continue to support a robust renter market making So Cal a wonderful place to invest in commercial real estate and apartment buildings. The current climate that includes strong fundamentals, low interest rates, and an aggressive pool of buyers are all strong indications that the second half of 2019 is shaping up to be a very active investment marketplace. Thus, serious investors should definitely look into commercial mortgage financing to take advantage of this great market!

California Commercial Mortgage Loans

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

• Alameda • Alpine • Amador • AnaheimBakersfield • Butte • Calaveras • Chula Vista • Colusa • Contra Costa • Corona • Del Norte • El Dorado • Elk GroveFontanaFresnoGarden Grove • Glenn • Humboldt • HuntingtonHuntington Beach • Imperial • Inyo • Kern • Kings • Klamath • Lake • Lassen • Long BeachLos Angeles • Madera • Marin • Mariposa • Mendocino • Merced • Modesto • Modoc • Mono • Monterey • Moreno Valley • Napa • Nevada • OaklandOceansideOrangeOxnardCorona • Placer • Plumas • Rancho Cucamonga • Riverside • Sacramento • San Benito • San BernardinoSan DiegoSan Francisco • San Joaquin • San Jose • San Luis Obispo • San Mateo • Santa Ana • Santa Barbara • Santa Clara • Santa Clarita • Santa Cruz • Santa Rosa • Shasta • Sierra • Siskiyou • Solano • Sonoma • Stanislaus • Stockton • Sutter • Tehama • Trinity • Tulare • Tuolumne • Ventura • Yolo • Yuba • PalmdalePasadenaSunnyvaleSalinasRiversidePomona