Detroit Commercial Mortgage Loans
$1,000,000 Minimum

Detroit Commercial Mortgage Rates - Rates updated June 15th, 2021

Loan Product Rates (start as low as) LTV
Multifamily Mortgage Rates (Over $6,000,000) 2.59% Up to 80% Get Free Quote
Multifamily Mortgage Rates (Under $6,000,000) 3.19% Up to 80% Get Free Quote
Single Tenant Lease Rates 3.44% Up to 75% Get Free Quote
Business Real Estate Loans 3.69% Up to 90% Get Free Quote
Commercial Mortgage Rates 3.69% Up to 75% Get Free Quote
Detroit Commercial Real Estate Detroit 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 Detroit. 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. Detroit 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 Detroit 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.

Detroit Commercial Mortgage Benefits

Detroit commercial mortgage rates start as low as 2.59% (as of June 15th, 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

Detroit Multifamily Loan Information

Detroit Economic Trends Detroit Economic Trends

Apartment Demand Triggers Development; Competitive Bidding for Class C Rentals Rising

Expanding apartment construction pipeline shifting outside core. The metro’s multifamily vacancy rate ended 2019 among the lowest in the nation, a trend that will continue this year as apartment rental demand outpaces supply. Although apartment construction in the metro is greater than at any time during the past five years, vacancy will remain well below the 5 percent replacement threshold in 2020. In recent years, the city of Detroit has dominated multifamily development as demand for rentals in highly amenitized walkable urban neighborhoods near workplaces remains strong. The conversion of long-vacant office buildings into apartments near the downtown core continues with the Book Tower and Gabriel Houze apartments set to open in 2020. Building activity is also expanding in the suburbs with more than 1,200 apartments underway. The majority are in Oakland County, where the median price of a single-family home is well above that of the metro, making apartment renting a lower-cost option. Royal Oak in particular will receive more than 400 multifamily rentals in this year. Investors looking in the Detroit market should pursue an apartment loan for their next purchase.

Cash-flow potential draws investors to Detroit’s apartment assets. The metro’s robust multifamily rental demand will produce the strongest rent gain since 2012, gathering interest from a wider range of buyers. Throughout the region, steady cash flows provide little incentive for owners to divest, creating competition for the limited supply of apartment assets that are listed. Over the past year, the average price jumped 3.8 percent to $66,100 per multifamily unit at an average cap rate in the high-6 percent span and some well-located suburban buildings trade above $115,000 per door. Although job growth will slow in 2020, auto companies are hiring. Fiat Chrysler will open the metro’s first new auto assembly plant later this year and is upgrading a nearby plant on the city’s east side. Ford is transforming Michigan Central Station in the Corktown neighborhood and recently announced plans to redevelop its Research and Engineering Center in Dearborn. These projects should generate renter demand and bolster buyer interest in apartments assets nearby. Detroit is a good market for investors looking for a multifamily loan to finance their next purchase.

2020 Detroit Multifamily Market Forecast

Detroit Completions vs. Absorption Detroit Completions vs. Absorption

The Detroit National Multifamily Index Rank is at 36, down 4 places. Tepid job growth holds Detroit back in the 2020 NMI as other markets move ahead.

Employment in Detroit is up 0.04%. Employment gains remain subdued, rising slightly from the 500 positions added in 2019 as 750 jobs are created this year.

Construction in Detroit is expected to exceed 1,500 apartment units. New inventory surpasses last year’s 1,400 rentals, reaching the highest level in four years. Deliveries will be split between city and suburbs.

Vacancy in Detroit is down 10 bps. In 2020, vacancy will contract to 3.1 percent. Last year, a 20-basis-point decline was noted.

Rent in Detroit is up 5.1%. The average effective rent continues to advance, reaching $1,058 per month by the end on 2020. In 2019, a 4.6 percent gain was recorded.

Investment in Detroit remains strong for those looking to finance their property with an apartment loan. Class C vacancy resting below 2 percent in the majority of the metro’s submarkets is providing operators with steady cash flows, keeping buyers searching for these assets. We advise investors looking in the Detroit market to finance their next purchase with a multifamily loan.

Data provided by Marcus & Millichap.

Commercial Mortgage Rate Trends in 2020

Detroit Vacancy and Rents Detroit 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

Detroit Sales Trends Detroit 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.

Detroit 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 Detroit 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.

Detroit Commercial Mortgage Loans

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


Bagley, Barton-McFarland, Brightmoor, Detroit Golf, Downtown, English Village, Franklin , ark, Grandmont-Rosedale, Joseph Barry, Medical Center, Midtown, Minock Park, Morningside, Palmer Woods, Rosedale Park, Sherwood Forest, Southwest Detroit, Springwells, Virginia Park, Warrendale.