Chicago Commercial Mortgage Loans
$1,000,000 Minimum

Chicago Commercial Mortgage Rates - Rates updated March 9th, 2021

Loan Product Rates (start as low as) LTV
Multifamily Mortgage Rates (Over $6,000,000) 2.94% Up to 80% Get Free Quote
Multifamily Mortgage Rates (Under $6,000,000) 3.37% Up to 80% Get Free Quote
Single Tenant Lease Rates 3.50% Up to 75% Get Free Quote
Business Real Estate Loans 3.70% Up to 90% Get Free Quote
Commercial Mortgage Rates 3.75% Up to 75% Get Free Quote
Chicago Commercial Real Estate Chicago 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 Chicago. 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. Chicago 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 Chicago 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.

Chicago Commercial Mortgage Benefits

Chicago commercial mortgage rates start as low as 2.94% (as of March 9th, 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

Chicago Multifamily Loan Information

Chicago Economic Trends Chicago Economic Trends

Development Remains Active Downtown; Property Tax Reassessment Weighing on Outlook

Tech sector fuels apartment rental demand in thriving urban core. Chicago will continue to witness multifamily rent growth in 2020, lifting the average effective rent above $1,600 per month. Suburban rent growth will remain stable this year as vacancy sits below 4 percent; however, apartment rental gains in the urban core will drive the marketwide increase. Employment growth is focused in downtown Chicago, particularly among tech firms, providing a boost to apartment demand here as vacancy has pushed down 180 basis points since 2017. Companies including Relativity, Truss and Vistex continue to add jobs, encouraging developers to meet the additional multifamily housing demand from new employees. The urban core is set to receive 65 percent of this year’s completions, with construction activity in the West Loop and Near North Side. Several inner-ring communities will also receive a portion of the new supply of apartment units, such as Logan Square and Uptown, which have become viable options for renters who have been priced out of downtown Chicago. Suburban completions will be largely confined to a variety of northern cities, where apartment demand continues to steadily increase. Investors would be wise to look to take out apartment loans in order to make their next purchase in the Chicago market.

Chicago apartment outlook clouded by property tax concerns. Buyers have increased focus on areas surrounding the forthcoming Lincoln Yards development. Smaller Class C assets in Wicker Park and Ukrainian Village produce cap rates in the low-6 percent range, but these multifamily properties generally require considerable upgrades to compete with newer, nearby inventory. Suburban assets along major transit arteries also garner attention, particularly in Aurora and Naperville, enticing a variety of local and out-of-state investors as they capitalize on sub-4 percent apartment vacancy. Though deal flow was relatively steady during the past year, concerns surrounding new property tax assessments in Cook County will remain a downside risk for many apartment investors. The assessor still has at least a year before the entire county has been reassessed, but increases witnessed in suburban submarkets offer insight into what could be in store for county apartment owners. While there are some concerns about the market, investors are still very interested in pursuing multifamily loans in order to finance their next acquisition in Chicago.

2020 Chicago Multifamily Market Forecast

Chicago Completions vs. Absorption Chicago Completions vs. Absorption

Chicago’s National Multifamily Index Rank is at 37, down 9 places. Diminishing overall employment gains and rising property taxes contribute to Chicago’s reduced standing in this year’s National Multifamily Index.

Employment in Chicago is up 0.6%. Hiring activity will continue to slow this year as 30,500 workers are added to payrolls. Last year, 33,000 jobs were created.

Construction of new apartment units in Chicago is expected to exceed 7.400 units. Completions will decrease after 9,100 units were delivered last year, with the urban core logging the majority of new supply.

The vacancy rate in Chicago is down 10 bps. The absorption of nearly 7,800 units will push market vacancy down to 4.8 percent this year. This builds on 60- and 40-basis- point drops during the previous two years.

Rent in Chicago is up 5.1%. Coming in just under the previous three-year average, rents will continue to advance, lifting the average effective rent up to $1,663 per month.

Investment in the Chicago apartment and multifamily market remains promising for those looking for multifamily loans. Large-scale mixed-use projects coming to fruition in the near future will continue to spur new investment opportunities in adjacent areas, further strengthening bidding environments. Investors would be wise to look into procuring an apartment loan for their next purchase in the Chicago metro.

Data provided by Marcus & Millichap.

Commercial Mortgage Rate Trends in 2020

Chicago Vacancy and Rents Chicago 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

Chicago Sales Trends Chicago 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.

Chicago 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 Chicago 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.

Chicago Commercial Mortgage Loans

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


Addison IL • Glen Ellyn • Northbrook • Algonquin • Glenview • Oak Brook • Arlington Heights • Gurnee • Oak Lawn • Aurora • Putnam • Oak Park • Barrington • Bolingbrook • Orland Park • Bartlett • Hanover Park • Rolling Meadows • Batavia • Highland Park • Round Lake Beach • Bolingbrook • Hinsdale • Schaumburg • Buffalo Grove • Joliet • St. Charles • Carol Stream • Lake Forest • Tinley Park • Des Plaines • Lombard • Waukegan • Downers Grove • Morton Grove • Westmont • Elgin • Mundelein • Wheaton • Elmhurst • Naperville • Wheeling