Chula Vista Commercial Mortgages
At Select Commercial, we pride ourselves on 35+ years of experience helping clients in Chula Vista with their commercial mortgage needs. Our commitment to excellence has helped create our reputation as a top-tier broker in the area. If you're specifically interested in a Chula Vista multifamily loan, we have dedicated resources to guide you. For those seeking comprehensive rates on all loan products available across the 48 states, our comprehensive commercial mortgage rate page offers competitive rates for loans starting at $1,500,000. Discover the latest trends in Chula Vista commercial mortgage rates as we approach the close of 2024.
Chula Vista Commercial Mortgage Rates - updated 11/21/24
| Minimum Loan Size $1,500,000 | Get Free Quote | ||
|---|---|---|---|
| Loan Product | Rate* | LTV | |
| Multifamily | 5.51% | Up to 80% | |
| Commercial Real Estate Loan | 6.92% | Up to 75% | |
| Single Tenant Lease | 6.62% | Up to 75% | |
| Business Real Estate Loan | 6.72% | Up to 90% | |
Chula Vista Commercial Mortgage Benefits
CA commercial mortgage rates start as low as 5.51% (as of November 21st, 2024)
• A commercial mortgage broker with over 30 years of lending experience
• No upfront application or processing fees
• Simplified application process
• Up to 80% LTV on multi family , 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
Our Reviews
Some commercial mortgage lenders lock rates at application, some lenders lock rates at commitment, while others lock rates prior to closing. We are currently in the midst of an increasing rate environment. Rates quoted at application may increase dramatically during the loan application progress, if not locked. It is very important to understand your lender’s procedure upfront to avoid potential confusion.
In order for a commercial mortgage lender to issue a firm loan approval, they will want to understand the financial condition of the borrower, as well as the fundamentals of the property. The borrower will be expected to supply his personal financial statement showing total net worth and liquidity. He will also need to provide a schedule of real estate owned demonstrating experience managing similar properties. Lastly, the borrower’s credit scores will needed. For the subject property, lenders will look closely at the current rent roll, operating statements showing income and expenses, copies of all leases, and other pertinent property information.
Commercial mortgage rates are determined by many different factors, including property type, location of the property, loan-to-value ratio, debt service coverage ratio, debt yield, borrower’s net worth, liquidity, credit rating and level of experience. Commercial mortgage lenders look at all of these factors to determine the riskiness of the loan before setting rates. Loans with the lowest risk profile will get the best commercial mortgage rates. As the potential risk increases, commercial mortgage rates usually increase.
Commercial mortgage loans are viewed differently by lenders than residential loans. Home loan lenders look strictly at the borrower’s income and credit in order to qualify. Commercial mortgage lenders look at the subject property’s rent roll, operating statements, and other factors to determine the cash flow or net income potential. Very strong (low risk) commercial mortgage loans might be priced lower than home loans, while weaker performing properties (higher risk) might be priced higher.
Most commercial mortgage loans today are fixed for 5, 7, or 10 years and come with a 25-30 year amortization schedule. Loans can be recourse (personal guarantee) or non-recourse (no personal guarantee). Commercial mortgage loans typically carry prepayment penalties, whereas residential home loans usually do not. Specific terms will be determined by your lender’s underwriting team after your application is reviewed.
Commercial mortgage lenders typically lend up to 75-80% on an apartment purchase (down payment of 20-25% necessary). On other types of commercial property, commercial mortgage lenders will typically lend up to 70-75% (down payment of 25-30% necessary). An exception is for owner occupied business real estate (such as a business owner buying his own property). Owner/users may qualify for up to 90% LTV financing.
Select Commercial is a leading commercial real estate loan provider. We have excellent commercial real estate loan products and options available for owners and purchasers of commercial real estate. While we lend across the entire continental United States, we are able to give our best commercial mortgage rates and loan programs to certain areas that we feel are strong markets. Chula Vista 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. As an experienced commercial mortgage professional, with over 30 years of lending experience, we have many sources of capital to choose from when placing a commercial mortgage request with a lender. Having many lenders to choose from gives us advantages over any one individual source. Finding the lender that fits the needs of each client is what we do best. In the end, you get the best rate and terms available. If you are looking to obtain a 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.
Commercial Real Estate Recent Closings
What’s going on with commercial mortgage rates in Chula Vista as we near the end of 2024?
The Federal Reserve’s Federal Open Markets Committee cut the federal funds rate by 50 basis points at its September 18, 2024, meeting. This was the first rate cut since March 2020, when the Fed began a long series of rate hikes to curb the high rate of inflation. The Fed’s decision shows that they believe that inflation is under control and moving into the 2% range that the Fed has set as its goal. The Federal Reserve took this decisive action to prevent further declines in the labor market. The Fed has further hinted at further cuts at its two remaining meetings in 2024, followed by additional cuts in 2025. This rate cut, along with possible future rate cuts, may create positive investor demand for commercial real estate, and may provide aid for commercial mortgage customers, as well as consumers in general. We must caution, however, that the Federal Reserve cuts affect short term interest rates directly and long-term rates only indirectly. The Prime Rate, which is a short-term rate, dropped from 8.50% to 8.00% with the Fed’s recent action. However, most commercial mortgage rates are based on the 5-, 7-, or 10-year treasury rates, and not the Prime Rate. We have seen these treasury rates actually rise since the Fed took its action. On September 18th, the 10-year treasury was roughly 3.70%. Three weeks later, this rate had jumped to 4.03%. Investors are still concerned about future inflation and are adopting a wait and see attitude.
Chula Vista Office Real Estate Insights: 2023
As of 2023, Chula Vista's office market has been experiencing a steady demand. The rise of remote work has led to a slight increase in vacancy rates, but the city remains an attractive location for businesses looking to expand or relocate. The average rent for office spaces has seen a moderate increase, reflecting the city's growing economy and its strategic location near the US-Mexico border.
Office Market Overview:
Despite the challenges posed by the pandemic, Chula Vista's office sector is showing resilience. The city's proximity to San Diego and the border makes it a strategic location for businesses, leading to a stable demand for office spaces. The current average rent stands at a competitive rate, making it an attractive option for both startups and established companies.
Chula Vista Industrial Real Estate Insights: 2023
Chula Vista's industrial sector has been on the rise in 2023. The city's strategic location has made it a hub for logistics and manufacturing units. The demand for industrial spaces has surged, with a particular interest in areas that cater to logistics, given its proximity to major highways and the border. Rental rates for industrial properties have seen a significant uptick, reflecting the growing demand.
Industrial Market Overview:
The industrial real estate market in Chula Vista is booming, with a notable increase in demand for warehousing and logistics spaces. The city's infrastructure and location make it ideal for businesses looking for expansive industrial spaces. The current trends suggest a continued growth trajectory for this sector in the coming years.
Chula Vista Retail Real Estate Insights: 2023
The retail sector in Chula Vista has been adapting to the changing consumer behaviors. While e-commerce continues to grow, there's a noticeable demand for brick-and-mortar retail spaces in prime locations. The city has seen a resurgence of in-person shopping experiences, with a focus on providing unique and holistic experiences to consumers. Rental rates for retail spaces have remained stable, with prime locations fetching premium rates.
Retail Market Overview:
Chula Vista's retail landscape is evolving, with a mix of traditional shopping centers and modern retail spaces. The city's diverse population and growing economy make it a prime location for retailers. The current market dynamics suggest a positive outlook for the retail sector, with a focus on experiential shopping and integration of technology.
Chula Vista Hotel Real Estate Insights: 2023
The hospitality sector in Chula Vista has been showing signs of recovery in 2023. With a focus on safety, hygiene, and unique experiences, hotels in the city are adapting to the new normal. The demand for boutique hotels offering unique experiences has been on the rise. The average room rates have seen a moderate increase, indicating a positive trend for the hotel industry in the city.
Hotel Market Overview:
Chula Vista's hotel industry is on a path of recovery and growth. The city's attractions and events have been drawing tourists, leading to a steady demand for hotel rooms. The current trends in the hotel sector indicate a focus on providing unique and personalized experiences to guests, with safety and hygiene being top priorities.
What areas of Chula Vista does Select Commercial provide financing?
Select Commercial provides commercial real estate loans throughout Chula Vista including but not limited to the areas below.