Kansas City Commercial Mortgage Loans
Kansas City Commercial Mortgage Rates - Rates updated May 17th, 2021
|Loan Product||Rates (start as low as)||LTV|
|Multifamily Mortgage Rates (Over $6,000,000)||3.02%||Up to 80%||Get Free Quote|
|Multifamily Mortgage Rates (Under $6,000,000)||3.29%||Up to 80%||Get Free Quote|
|Single Tenant Lease Rates||3.52%||Up to 75%||Get Free Quote|
|Business Real Estate Loans||3.77%||Up to 90%||Get Free Quote|
|Commercial Mortgage Rates||3.77%||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 Kansas City. 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. Kansas City 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 Kansas City 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.
Kansas City Commercial Mortgage Benefits
Kansas City commercial mortgage rates start as low as 3.02% (as of May 17th, 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!"
Kansas City Multifamily Loan Information
Corporate Expansion Boosts Apartment Demand; Suburban Employment Hubs Spurring Investment
Multifamily demand drivers point to another year of steady fundamentals. Following a five-year-long streak of robust apartment rental absorption, Kansas City’s apartment sector enters 2020 on solid footing. During the recent span, vacancy dipped 30 basis points amid the delivery of more than 18,000 multifamily units. Positive employment growth and the resulting increase in household formation fueled the need for these newly built apartments. Catalysts for job creation are lined up for this year, driven by IT firm Cerner’s expansion and USDA relocating two internal agencies from Washington, D.C., to downtown Kansas City. With unemployment low, these organizations and other growing firms will recruit from outside the metro with greater frequency, increasing the pace of new residents searching for apartments. This activity coincides with the delivery of 3,600 multifamily units this year, largely 200-unit-plus properties in Kansas City’s core and southern Overland Park. While these supply additions will raise the use of concessions in these locales and place pressure on short-term multifamily vacancy, overall apartment availability in the metro will adjust nominally this year. Investors looking to purchase property in Kansas City should definitely look into taking out an apartment loan to finance their acquisition.
Higher-tier trades near employment centers steer deal flow. Local and out-of-state apartment buyers are equally active in Kansas City, boosting competition for multifamily listings and asset values while strong rental demand persists. Larger Class A and B multifamily properties are highly pursued by outside investors. In downtown Kansas City, pricing for these apartment properties can exceed $250,000 per unit, with cap rates dipping below 5 percent. Home to the metro’s largest job center and highest median income, Johnson County represents an additional focus for these buyers. Here, similar-size multifamily assets have yet to trade for more than $200,000 per door. Smaller private investors seeking midsize Class C apartment complexes above 8 percent first-year yields contend for listings in outlying Johnson County, where sub-$60,000 per unit pricing remains prevalent. Kansas City is a great market for investors to finance their next apartment purchase with a multifamily loan.
2020 Kansas City Multifamily Market Forecast
Kansas City National Multifamily Index Rank is at 43, down 1 place. Slower job growth and an expanding inventory trim Kansas City a notch in the 2020 NMI.
Employment in Kansas City is up 0.9%. Employers create 10,000 jobs this year, driven by a solid increase in the number of traditional office positions. In 2019, organizations added 13,000 workers to staffs.
Construction in Kansas City is expected to exceed 3,600 apartment units. Delivery volume in 2020 dips slightly from the prior five-year average of 3,700 units, with supply additions boosting Kansas City’s rental stock by 2.1 percent.
Vacancy in Kansas City is up 10 bps. On net absorption of more than 3,200 apartments, metro vacancy inches up to 5.2 percent this year.
Rent in Kansas City is up 3.6%. Stable vacancy and rising incomes allow Kansas City’s average effective rent to reach $1,015 per month in 2020.
Investment opportunities in Kansas City remain strong for those looking to finance their next purchase with an apartment loan. Rising asset values influence upside-seeking local investors to target Midtown Kansas City, where sub-$100,000 per unit pricing and returns in the low-7 percent band are obtainable. We highly recommend any investors looking to buy in the Kansas City market to reach out to us regarding a multifamily loan.
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.
Kansas City 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 Kansas City 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.
Kansas City Commercial Mortgage Loans
Pendleton Heights • Fairway Hills • Armour Fields • Morningside • Ridgefield • Brookside Park • Ward Parkway • East Swope Highlands • Country Club