Florida Commercial Mortgage Loans
Florida Commercial Mortgage Rates - Rates updated July 2nd, 2020
|Loan Product||Starting Rates||LTV|
|Single Tenant Lease Rates||3.51%||Up to 75%||Get Free Quote|
|Commercial Mortgage Rates||3.81%||Up to 75%||Get Free Quote|
|Multifamily Mortgage Rates||3.41%||Up to 80%||Get Free Quote|
|Business Real Estate Loans||3.61%||Up to 90%||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 state of Florida. 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. Florida is one of the states 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 FL borrowers looking to purchase or refinance a commercial property. If you are looking to obtain an 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. Our staff is professional and knowledgeable, and we look forward to working with you on your next commercial mortgage transaction.
Florida Commercial Mortgage Benefits
Florida commercial mortgage rates start as low as 3.41% (as of July 2nd, 2020)
• 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!"
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.
Florida Commercial Mortgage Loan Options
We arrange commercial mortgage financing in the state of Florida for the following:
- Multifamily 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.
Florida Commercial Mortgage Information and Economic Overview
Florida's economy is one of the largest and most productive in the world. With a gross state product of about $1.0 trillion, Florida not only ranks as the fourth largest economy in the country but is also larger than all but fifteen countries in the world! Florida is responsible for 5 percent of the United States' approximate $21 trillion gross domestic product. Florida’s thriving business climate continues to the impress global business world. With its large, talented and successful workforce, lack of personal income tax and a streamlined regulatory environment, Florida provides a highly lucrative landscape for businesses and investments to thrive. Here are some of Florida’s economic statistics that demonstrate why you should be interested in receiving commercial mortgage financing in this region:
- Florida has 4th largest economy in the U.S. (BEA & IMF)
- Florida has a population of 20+ million, 3rd largest in the US (Census Bureau)
- About 98.9 million tourists visit Florida each year (VISIT FL)
- The state of Florida generates more than $153 billion in annual merchandise trade (WISER)
- At more than $840 billion in personal income, Florida ranks #1 in the Southeast (BEA)
Florida has traditionally been one of the strongest and safest commercial real estate and multifamily markets in both the country and the world with continually positive returns and safety for the capital of its investors. Within the state, the South Florida market leads the way. With its tax-friendly laws, consistently strong population growth, innovative development projects and high rate of global tourists, Florida is the perfect place to invest in commercial real estate and apartment buildings. It’s more than just the population growth that makes Florida an active, enticing and lucrative market. Florida also possesses a high volume of attractive properties, diverse cultural offerings and is a very hot tourist attraction. Global investors in countries such as China, Canada, Germany, Singapore, Saudi Arabia, and Qatar are continuously investing in the Florida market. This substantial influx of capital coinciding with the current economic conditions provides a solid foundation for why South Florida remains a popular place for commercial real estate and multifamily investments. All of these factors blend together to continually make it an incredibly lucrative investment opportunity. In terms of commercial mortgages, there are over 2.5 mortgages for commercial properties throughout the state of Florida. The average value of these commercial mortgages is just over $4 million, 23% below the United States average. This data demonstrates that Florida is terrific place to obtain a commercial mortgage loan.
In terms of the multifamily market, South Florida is among the top U.S. markets for new units in 2019. About 13,000 apartments are projected to be added in the tri-county area this year. The bulk of construction in South Florida is occurring in Miami with about 7,000 units. That’s up from just over 3,100 apartment deliveries in Miami a year ago. Fort Lauderdale is next on the list with around 1,300 new units, followed by West Palm Beach with 700, Pompano Beach with a little under 500 and Doral with just over 300.
According to Freddie Mac’s Multifamily Report, several Florida markets are expected to produce the highest multifamily property revenue increases in 2019 due to strong population growth and low vacancy rates. In recent years the Jacksonville economy has flourished tremendously. The city’s gross metro product increased by an estimated average of 3.7% annually over the past five years. In 2018, rents in Jacksonville grew 5.7% which ranked as the fourth best performance among the top 50 markets in the United States. Jacksonville’s employment and population growth has contributed to the increase in household formations within the market. These households are amongst the strongest earners in the America. During the five years between 2012 and 2017, median household incomes in Jacksonville increased almost 21%, well above the national average of 17.5%. Due to these and many other factors, Jacksonville’s tremendous increase in both population and wages will be able to handle the deliveries and rising rents. Florida’s commercial real estate and apartment market currently ranks 5th nationwide for development behind only Texas, New York, California, and Tennessee. These numbers make Florida the perfect place to receive commercial mortgage financing in order to invest in commercial real estate and apartment buildings.
Florida Commercial Mortgage Loans
Select Commercial provides commercial mortgage loans and multifamily financing throughout the state of Florida including but not limited to the areas below.
• Miami • Tampa • Port Saint Lucie • Jacksonville • Cape Coral • St Petersburg • Pembroke Pines • Fort Lauderdale • Orlando • Pembroke Pines • Hialeah • Tallahassee • West Palm Beach