Huntington Beach Commercial Mortgages
At Select Commercial, we pride ourselves on 35+ years of experience helping clients in Huntington Beach 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 Huntington Beach 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 Huntington Beach commercial mortgage rates as we approach the close of 2024.
Huntington Beach 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% | |
Huntington Beach 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. Huntington Beach 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 Huntington Beach 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.
Huntington Beach Office Commercial Real Estate Insights: Q1 2023
Huntington Beach, located in Orange County, has been a center of attraction for businesses due to its strategic location and the amenities it offers. The city's office spaces are adapting to the broader regional trends, catering to the evolving needs of businesses in a post-pandemic world.
Office Market Overview:
The office sector in Huntington Beach has seen a consistent demand. The city offers a blend of spaces that cater to traditional office setups as well as hybrid work models. The rise of remote working has led businesses to reevaluate their space needs, but Huntington Beach remains a preferred location due to its connectivity and infrastructure.
Adapting to New Work Norms:
Businesses in Huntington Beach are increasingly looking for flexible office spaces that can accommodate varying workforce sizes. The city's commercial real estate market is responding by offering spaces that are adaptable and equipped with modern amenities.
Future of Office Spaces:
With its strategic location and a diverse range of available spaces, the office real estate market in Huntington Beach is expected to remain resilient. The city is well-poised to cater to the changing needs of businesses, making it a sought-after location for office spaces.
Huntington Beach Industrial Commercial Real Estate Insights: Q1 2023
Known for its proximity to major transportation routes, Huntington Beach serves as a pivotal point for industrial activities. The city's industrial spaces are in line with the broader regional trends, catering to a wide range of businesses from manufacturing to logistics.
Industrial Market Overview:
The demand for industrial spaces in Huntington Beach remains robust. The city's strategic location and connectivity make it an attractive hub for businesses that require storage, manufacturing, and distribution facilities. The rise of e-commerce and the need for efficient logistics solutions further boost the demand for modern industrial spaces in the city.
Emerging Industrial Trends:
Businesses are on the lookout for industrial spaces that are equipped with the latest technology and can cater to the modern requirements. Huntington Beach, with its diverse range of industrial spaces, is well-equipped to meet these demands.
The city's industrial real estate landscape is expected to see steady growth, driven by its strategic location and the evolving needs of businesses.
Huntington Beach Retail Commercial Real Estate Insights: Q1 2023
Huntington Beach, with its vibrant communities and diverse population, offers a dynamic retail landscape. The city's retail spaces are evolving to cater to the varied needs of its residents, providing a mix of local boutiques and major retail chains.
Retail Market Overview:
The retail sector in Huntington Beach is witnessing a transformation. With changing consumer behaviors, there is a focus on experiential retailing. The city offers a unique shopping experience, making it a preferred destination for both locals and tourists.
Future of Retail Spaces:
As consumers seek unique and memorable shopping experiences, the retail spaces in Huntington Beach are adapting to these demands. The city's retail landscape is not just about shopping; it's about creating experiences that resonate with consumers.
With a blend of local boutiques and major retail chains, the retail environment in Huntington Beach is set to thrive, catering to the diverse needs of its residents and visitors.
Huntington Beach Hotel Commercial Real Estate Insights: Q1 2023
Huntington Beach, a prime destination in Orange County, attracts both business and leisure travelers. The city's hotels are focusing on enhancing guest experiences, ensuring safety, and offering unique stays in line with the broader regional trends.
Hotel Market Overview:
The city offers a range of accommodations, from luxury resorts to budget hotels. With a focus on integrating technology and ensuring safety protocols, hotels in Huntington Beach are striving to provide personalized experiences to their guests.
Adapting to New Travel Norms:
In a post-pandemic world, the emphasis on safety and hygiene is paramount. Hotels in Huntington Beach are adapting to these new norms, ensuring guests have a safe and memorable stay.
Future of Hotel Spaces:
With its pristine beaches and vibrant communities, Huntington Beach remains a preferred destination for travelers. The city's hotels are well-poised to cater to the evolving needs of travelers, ensuring they offer unique and memorable stays.
What areas of Huntington Beach does Select Commercial provide financing?
Select Commercial provides commercial real estate loans throughout Huntington Beach including but not limited to the areas below.