Dallas Commercial Mortgage Loans
Dallas 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 city of Dallas. 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. Dallas 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 Dallas 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.
Dallas Commercial Mortgage Benefits
Dallas commercial mortgage rates start as low as 3.02% (as of May 17th, 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!"
Dallas Multifamily Loan Information
Companies Expand Footprint in Dallas, Fueling Housing Demand; Area Remains Top of Mind for Buyers
Job creation keeping apartment developers active. The building boom will continue in the Metroplex this year as more than 21,000 multifamily units will be delivered. Dallas’ urban core will receive nearly 2,000 of those apartments as developers look to capitalize on the area’s growing employment hub, headlined by Uber’s new campus. Corporate expansions and relocations to downtown Dallas have become an increasingly popular trend; however, the northern suburbs remain the top target for many high-profile firms seeking a presence within the Metroplex. Fueled by employment growth, strong household formation in communities like Frisco and Richardson will provide a boost to apartment construction efforts this year and help alleviate some relatively tight conditions. South Irving and Northwest Dallas boast even lower multifamily vacancy rates, although apartment availability will stay limited in these areas as new development remains sparse, giving rents some room to grow. This will support stable market wide apartment rent growth in 2020 as Dallas’s average effective rent surpasses $1,200 per month. Dallas is a great place for investors to look into obtaining apartment loans to purchase their next property.
Revitalization in East Dallas continuing to draw interest from collection of buyers. Dallas’s strong demographics and healthy fundamentals will continue to keep apartment buyers active in the market. The Metroplex’s strong bidding environment has compressed the metro’s average cap rate 260 basis points to 5.8 percent since the end of 2009. East Dallas remains among the most highly targeted areas as a variety of smaller Class B/C multifamily complexes garner attention from value-add buyers. Cap rates for these apartment properties average in the low-6 percent range, although assets requiring considerably more rehab may produce yields up to 8 percent. Dallas is also gaining traction with multifamily investors as increased employment growth has expanded the renter pool, strengthening bidding climates and pushing cap rates into the mid-5 percent band. Investors in the Dallas area are very interested in financing their purchases with multifamily loans.
2020 Dallas Multifamily Market Forecast
Dallas National Multifamily Index Rank is at 27, up 4 places. Employment growth more than twice the national average generates rental demand lifting Dallas in the NMI.
Employment in Dallas is up 2.2%. Following an average of roughly 100,000 jobs created each of the previous five years, 85,000 positions will be added in 2020 as tight unemployment restrains some hiring activity.
Construction of apartment units in Dallas is expected to exceed 21,400 units. Developers will surpass the 20,000-unit mark for the fifth consecutive year as they try to keep pace with the sustained wave of new households.
Vacancy in Dallas is down 10 bps. Strong leasing activity will push market vacancy down to 4.9 percent, building on the 50-basis-point drop in 2019.
Rent in Dallas is up 3.6%. After a 5.9 percent boost last year, rent growth will moderate in 2020 as the average effective rent rises to $1,232 per month.
Investment in Dallas remains a strong option for those looking for apartment loans. Tight conditions across the Mid-Cities will keep investors interested in communities such as Irving and Lewisville, where cap rates average 6 percent for stabilized Class C properties. We recommend that investors in the Dallas area should consider procuring multifamily loans to finance their next purchase.
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.
Dallas 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 Dallas 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.
Dallas Commercial Mortgage Loans
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