Fort Lauderdale Commercial Mortgage Loans
Fort Lauderdale 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 Fort Lauderdale. 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. Fort Lauderdale 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 Fort Lauderdale 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.
Fort Lauderdale Commercial Mortgage Benefits
Fort Lauderdale 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!"
Fort Lauderdale Multifamily Loan Information
Steady In-Migration Supporting Fort Lauderdale Housing Demand; Investors Remain Active
Stable household formation and sound hiring lift demand for apartment rental housing. Fort Lauderdale remains a popular destination for retirees because of its favorable tax and weather climate. The metro is one of the leading destinations for retirees 65 and older in the nation. Young professionals are also increasingly drawn to Broward County for its mix of major corporations, including American Express, Citrix and AutoNation, along with multifamily rental rates below those in Miami and West Palm Beach. Both the young adults and retirees are fueling apartment rental demand as it offers flexibility, amenities and quality locations proximate to services. Multifamily renters are being drawn to rapidly transforming areas of the market like Flagler Village, which caters to millennials with trendy restaurants and nightlife while also being located a short distance to mass transit. Dania Beach is in the early stages of a major revitalization of its city center as well as Dania Pointe nears completion and other projects are in the works. Fort Lauderdale is a great market for investors looking to finance their next purchase with an apartment loan.
Demographics and property performance sustain investor appetite. An abundance of capital will pursue opportunities in Broward County this year, motivated by strong underlying demand that keeps apartment rents on an upward trajectory. An attractive yield profile also boosts liquidity in the multifamily market with buyers often finding cap rates in the low-6 percent band and sometimes in the mid-7 percent territory for smaller Class C apartment properties. The suburban areas of Plantation/Sunrise and Pompano Beach/Deerfield Beach will maintain investor interest among both private investors and institutional groups for their mix of modern Class A multifamily complexes and value-add opportunities. Flagler Village and other areas of downtown Fort Lauderdale will remain in apartment investor focus because of the Brightline express train, which now connects the business districts of the three South Florida metros, sustaining strong demand from young professionals. Investors looking to purchase property in Fort Lauderdale would be wise to take out a multifamily loan for their next acquisition.
2020 Fort Lauderdale Multifamily Market Forecast
The Fort Lauderdale National Multifamily Index Rank is at 12, up 5 places. Steady employment gains and cap rates above the national average propel Fort Lauderdale up in the 2020 Index.
Employment in Fort Lauderdale is up 1.6%. Employers add 14,000 workers to company payrolls this year, mirroring the 1.6 percent pace of growth posted last year.
Construction in Fort Lauderdale is expected to exceed 3,500 apartment units. This will be the most active year for deliveries on record, outpacing last year’s total by 700 units.
Vacancy in Fort Lauderdale is up 10 bps. Robust supply growth overshadows demand in 2020 to push the vacancy rate up to 4.4 percent. A 90-basis-point decline was registered in 2019.
Rent in Fort Lauderdale is up 3.7%. After climbing 4.1 percent last year, the average effective rent increases to $1,700 per month in 2020.
Fort Lauderdale remains a strong investment opportunity for those looking to finance their next purchase with an apartment loan. Zoning changes in Dania Beach allow for more small-lot mixed use development, motivating developers to move forward with plans that will reshape the city center. The Dania Pointe development and proximity to I-95 boost sentiment of the area. We highly recommend investors pursue taking out a multifamily loan to purchase their next property.
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.
Fort Lauderdale 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 Fort Lauderdale 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.
Fort Lauderdale Commercial Mortgage Loans
Bermuda Riviera, Palm-Aire Village, Landings, Rio Vista, Harbor Drive, Breakwater Surf, Lake Estates, Imperial Point, Tarpon River, River Oaks, South Middle River, Lauderdale, Manors, Victoria Park, Imperial Point, Coral Ridge, Coral Ridge Country Club, Dorsey-Riverbend, Melrose Manors, Riverside Park, Sunset.