El Monte Commercial Mortgages
At Select Commercial, we pride ourselves on 35+ years of experience helping clients in El Monte 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 El Monte 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 El Monte commercial mortgage rates as we approach the close of 2024.
El Monte Commercial Mortgage Rates - updated 12/21/24
| Minimum Loan Size $1,500,000 | Get Free Quote | ||
|---|---|---|---|
| Loan Product | Rate* | LTV | |
| Multifamily | 5.36% | Up to 80% | |
| Commercial Real Estate Loan | 6.70% | Up to 75% | |
| Single Tenant Lease | 6.40% | Up to 75% | |
| Business Real Estate Loan | 6.60% | Up to 90% | |
El Monte Commercial Mortgage Benefits
CA commercial mortgage rates start as low as 5.36% (as of December 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. El Monte 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 El Monte 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.
El Monte Office Commercial Real Estate Insights: 2023
El Monte, situated in the heart of Southern California, is experiencing shifts in its office sector dynamics, much like its neighboring cities. The influence of hybrid work models and the increasing preference for remote working have been evident in the city's office rental landscape.
Office Market Overview:
The office sector in El Monte has seen fluctuations, with vacancy rates reflecting the broader trends in California. The integration of technology and the need for flexible workspaces have been driving factors in shaping the office space market.
Adapting to New Work Norms:
El Monte, with its strategic location and growing business community, continues to be an attractive spot for businesses. The city's office spaces are evolving to accommodate the needs of modern businesses, with commercial real estate loans playing a significant role in this transformation.
Future of Office Spaces:
Given the city's potential for growth and its adaptability to changing work norms, the demand for office spaces in El Monte is expected to see a steady rise. Commercial real estate loans in the city will be pivotal in assisting businesses to secure prime locations and adapt to the evolving market.
The office rental scenario in El Monte is intertwined with the broader trends in commercial real estate financing. As businesses navigate the changing landscape, commercial real estate loans in El Monte will be crucial in providing the necessary support and flexibility.
El Monte Industrial Real Estate Insights: 2023
El Monte's industrial sector is reflective of the broader industrial trends in California. The city, with its strategic location, has been a hub for various industrial activities, and the current market dynamics are a testament to its growing importance in the region.
Industrial Market Overview:
With the rise of e-commerce and the need for expansive logistics hubs, the industrial real estate market in El Monte has seen significant activity. The demand for modern, tech-equipped spaces is on the rise, and the city's industrial spaces are evolving to meet these demands.
Future of Industrial Spaces:
The city's industrial sector is poised for growth, with a focus on sustainable and tech-integrated spaces. The role of commercial real estate loans will be instrumental in aiding businesses to navigate this dynamic market and secure optimal industrial locations.
El Monte Retail Real Estate Insights: 2023
The retail sector in El Monte, much like the rest of California, is undergoing a transformation. With the rise of e-commerce, brick-and-mortar stores are reinventing themselves to offer unique shopping experiences.
Retail Market Overview:
Despite the challenges, the city's retail spaces are evolving to cater to the modern consumer. The integration of technology and the focus on providing holistic shopping experiences are driving the retail market in El Monte.
Future of Retail Spaces:
With a focus on innovation and adaptability, the retail sector in El Monte is expected to see positive growth. Commercial real estate loans will play a crucial role in assisting businesses to secure prime retail locations and adapt to market demands.
El Monte Hotel Real Estate Insights: 2023
The hospitality sector in El Monte is reflective of the broader trends in California. With a focus on safety, hygiene, and unique experiences, hotels in the city are adapting to the evolving needs of travelers.
Hotel Market Overview:
El Monte's hotels are focusing on providing holistic guest experiences, with a blend of traditional charm and modern amenities. The city, with its rich cultural heritage and strategic location, continues to attract tourists, driving the hotel real estate market.
Future of Hotel Spaces:
With an emphasis on sustainability and innovation, the hotel sector in El Monte is poised for growth. Commercial real estate loans in the city will be pivotal in aiding businesses to navigate the dynamic hotel market and secure prime locations.