Columbus Commercial Mortgage Loans
Columbus 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|
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 Columbus. 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. Columbus 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 Columbus 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.
Columbus Commercial Mortgage Benefits
Columbus 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!"
Columbus Multifamily Loan Information
Hiring in Medical and Government Industries Spurs Housing Growth Throughout the Urban Core
Leasing follows large influx of apartment construction in urban core. Increased hiring by the healthcare services industry and government sector will help expand household formation in Columbus this year. The central business district continues to be the epicenter of multifamily housing formation due to the expansion of offices and medical center demand. Economic growth in this area has motivated developers to construct apartments in the city as more employees move closer to the urban core for work. Approximately 3,100 apartments will be constructed in 2020, with 1,200 units of the inventory being delivered near the city center. Just north of the central business district, multifamily builders have broken ground on Columbus’ $300 million professional soccer stadium to be delivered in 2021, adding to the already-flourishing Downtown/University area. Additionally, new mixed-use space is to be developed here, including the six-story Xander on State, which will total 222 units. This project will include 15,000 square feet of commercial space, attracting multifamily residents that want to be near a wealth of shopping, food and hometown events. Inflow of supply will minimally expand vacancy downtown; however, demand for apartment housing near these amenities will continue to trigger stable rent gains this year. Investors should look into apartment loans to finance their next purchase in Columbus.
Multifamily investors seek value-add assets in arts district and east of downtown. Apartment listings slightly north of the city will continue to attract local buyers seeking aged inventory in the metro. In addition to quick access to employers downtown and other nearby employment hubs, this area has a unique retail presence that integrates shopping with local community events. Class C apartment vacancy in this area has reached below the 3 percent mark, confirming the location’s value to renters. Multifamily assets here are changing hands above the metro’s average price per unit of $72,000, producing average returns approximately 200 basis points below the metro’s average cap rate of 7 percent. Columbus is a solid market for investors to obtain multifamily loans to purchase their next property.
2020 Columbus Multifamily Market Forecast
Columbus National Multifamily Index Rank is at 26, down 3 places. Curtailing employment amid a rise in completions lowers the Columbus ranking in the 2020 Index.
Employment in Columbus is up 0.9%. Hiring will slow slightly from last year’s 11,500 employment gain as firms add 10,500 works to the metro.
Construction of new apartment units in Columbus is expected to exceed 3,100 units. Construction will pick up minimally this year as completions rise over 3,000. Last year, 2,800 apartments were finalized.
Vacancy in Columbus is down 10 bps. This year’s rental demand will outpace supply growth. Increased demand will result in vacancy contracting to 4.1 percent.
Rent in Columbus is up 4.0%. Robust leasing momentum will lift the average effective rent to $1,025 per month, building on a 4.6 percent rent boost last year.
Investment in Columbus remains strong for investors looking to finance their purchases with multifamily loans. An attractive yield profile and strong tenant demand among middle-income renters bring investors to areas east of Columbus where initial returns are in the mid-8 percent area. We definitely recommend interested investors to purchase property in Columbus with an apartment loan.
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.
Columbus 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 Columbus 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.
Columbus Commercial Mortgage Loans
Arena District, Brewery District, Cassady, Clintonville, Discovery District, Downtown, Eastland, Edgewood, Fifth by Northwest, Franklinton, German Village, Grandview Heights, Greater Hilltop, Harrison West, Holtzman-Main, Hungarian Village, Innis Gardens, Italian Village, King-Lincoln Bronzeville, Lincoln Park, Market Exchange District, Merion Village, Mile on High, Millbrook, Milo-Grogan, Near East, Near South, North Central, North East, North Linden, Northland, Northwest, Old Oaks, Olde Towne East, Reeb-Hosack, RiverSouth District, Schumacher Place, Short North, South Alum Creek, South Linden, Southside, Southwest, University District, Untitled Polygon, Uptown District, Victorian Village, Walnut Ridge, Warehouse District, Weinland Park, West Olentangy, West Scioto, Woodland Park.