Los Angeles Commercial Mortgage Loans
$1,000,000 Minimum

Los Angeles Commercial Mortgage Rates - Rates updated May 7th, 2021

Loan Product Rates (start as low as) LTV
Multifamily Mortgage Rates (Over $6,000,000) 3.00% Up to 80% Get Free Quote
Multifamily Mortgage Rates (Under $6,000,000) 3.27% Up to 80% Get Free Quote
Single Tenant Lease Rates 3.50% Up to 75% Get Free Quote
Business Real Estate Loans 3.75% Up to 90% Get Free Quote
Commercial Mortgage Rates 3.75% Up to 75% Get Free Quote
Los Angeles Commercial Real Estate Los Angeles Commercial Mortgage

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 Los Angeles. 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. Los Angeles 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 Los Angeles 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.

Los Angeles Commercial Mortgage Benefits

Los Angeles commercial mortgage rates start as low as 3.00% (as of May 7th, 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!"

Recent Closings

Los Angeles Multifamily Loan Information

Los Angeles Economic Trends Los Angeles Economic Trends

High Cost of Homeownership Sustains Rental Demand; Investors Target Locales With Higher Return Thresholds

Tight conditions preserved amid wave of supply additions. In each of the previous three years multifamily rental demand in Los Angeles outpaced elevated levels of construction activity, compressing vacancy to a cycle-low level entering 2020. Limited apartment unit availability occurs at an opportune time, as the county’s multifamily rental inventory will swell by an additional 14,000 apartment units this year, the third-largest total among major U.S. metros. While core Los Angeles continues to record the largest influx of new apartments, deliveries are more evenly distributed between Downtown Los Angeles, Mid-Wilshire and Hollywood than in previous years. Elsewhere, the San Fernando Valley will record a large increase of new multifamily units, welcoming more than 4,000 apartment rentals, 40 percent of which are in Woodland Hills. Throughout the county, projects in lease-up will benefit from steep home prices and income growth, but concessions usage will increase as multifamily developers seek to achieve stabilization in under a year. With solid apartment demand drivers in place, the overall impact of cycle-high delivery volume will be moderate, with metro vacancy rising to 4 percent. Investors looking to purchase property in Los Angeles should definitely look into taking out an apartment loan to finance their acquisition.

New legislation forces investors to adjust expectations. Robust multifamily renter demand for lower-cost apartments will fuel buyer competition for properties near major freeways and employment hubs this year. While the implementation of statewide rent control could alter returns on Class C apartment investments following a span of sizable rental rate gains in this tranche, tight conditions should allow for steady, yet more subdued, increases moving forward. In-county multifamily investors and regional 1031-exchange buyers should be most active, eyeing Koreatown, South Bay and the San Gabriel Valley, where pricing below $200,000 per apartment unit and 5 percent-plus cap rates can be found. Hollywood, Mid-Wilshire and the San Fernando Valley represent additional targets for these buyers; however, yields beyond the mid-4 percent band will be harder to obtain as multifamily asset values in these locales rise. Los Angeles is a great market for investors to finance their next apartment purchase with a multifamily loan.

2020 Los Angeles Multifamily Market Forecast

Los Angeles Completions vs. Absorption Los Angeles Completions vs. Absorption

The Los Angeles National Multifamily Index Rank is at 13, down 9 places. Uncertainty regarding California’s rent-control implementation and a boost in inventory amid slower employment growth knock Los Angeles out of the top 10 in the 2020 NMI.

Employment in Los Angeles is up 0.9%. After expanding payrolls by 50,000 positions last year, metro employers bolster staffs by 40,600 workers in 2020.

Construction in Los Angeles is expected to exceed 14,100 apartment units. Delivery volume rises by more than 5,200 units on a year-over year basis, increasing Los Angeles’ rental stock by 1.3 percent.

Vacancy in Los Angeles is up 60 bps. Supply additions outpace rental demand for the first time in four years, elevating metro vacancy to 4.0 percent. Still, more than 6,800 units will be absorbed.

Rent in Los Angeles is up 3.0%. Increased concessions usage and rent control will slightly slow the mean rental growth this year, with the average effective rent reaching $2,380 per month.

Investment opportunities in Los Angeles remain strong for those looking to finance their next purchase with an apartment loan. Home to a cohort of higher-earning residents who are choosing to not purchase a home, Silicon Beach remains a target for buyers willing to deploy more than $500,000 per unit for Class C assets. We highly recommend any investors looking to buy in the Los Angeles market to reach out to us regarding a multifamily loan.

Data provided by Marcus & Millichap.

Commercial Mortgage Rate Trends in 2020

Los Angeles Vacancy and Rents Los Angeles Vacancy and Rents

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

Los Angeles Sales Trends Los Angeles Sales Trends

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.

Los Angeles 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 Los Angeles 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.
Our company has multiple capital sources for these loans, including: national banks, regional and local banks, Fannie Mae, Freddie Mac, FHA, HUD, insurance companies, Wall Street conduit lenders (CMBS deals), credit unions and private lenders/hedge funds. Whether you are purchasing or refinancing, we have the right solutions available. We will entertain loan requests of all sizes, beginning at $1,000,000. Get started with a Free Commercial Mortgage Loan Quote.

Los Angeles Commercial Mortgage Loans

Select Commercial provides commercial mortgage loans and multifamily financing throughout Los Angeles and the state of California including, but not limited to, the areas below.

Los Feliz • Westwood • Playa Vista • Beverly Crest • New Downtown • Mar Vista • Mid-City West • Brentwood • Silver Lake • Pacific Palisades • Rancho Park • Mid-Wilshire • Encino • Venice Beach • Echo Park • Hollywood • Elysian Park • Glassell Park • Granada Hills • Northridge