Massachusetts Commercial Mortgage Loans
Massachusetts 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 state of Massachusetts. 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. Massachusetts 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 MA 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.
Massachusetts Commercial Mortgage Benefits
Massachusetts commercial mortgage rates start as low as 3.02% (as of 05/17/21)
• 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
Massachusetts Commercial Mortgage Loan Options
We arrange commercial mortgage financing in the state of Massachusetts 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.
Massachusetts Commercial Mortgage Information and Economic Overview
The state of Massachusetts provides much potential to investors looking for commercial mortgage financing. This market is heavily driven by the major hospitals, universities and employers in the region. From Boston to Lowell and Waltham to Springfield, there are many significant investment opportunities available to investors. The average value of commercial real estate properties in Massachusetts is just over $780,000 and the median sale price of these properties is about $364,000. Over the last two years there have been slightly under 48,000 commercial sales; about 30,200 have sold for greater than $250,000, close to 6,200 of them were valued at over $1,000,000, and nearly 640 were appraised at over $10,000,000. Per square foot, the average price of commercial real estate properties in Massachusetts over the last two years is $135 and the average lot size of these properties is 9,040 square feet (92% below the United States average). There are nearly 754,000 commercial properties in Massachusetts, 194% below the country’s average, with a total acreage of over 1,000,000 acres. In terms of commercial mortgages, there are slightly under 1.5 million mortgages for commercial properties throughout the state of Massachusetts. The average value of these commercial mortgages is about $829,000, 144% below the United States average.
The Boston market is incredibly lucrative and is a wonderful place to take out a commercial mortgage loan. At the moment, development is very prominent in downtown Boston and its surrounding suburbs as we continue to see projects being finished in the Seaport, in Fenway, and at North Station. While Boston might seem oversaturated with commercial real estate properties, it is anticipated that numerous key development spots will be traded this year. We will also see development move beyond Boston itself, with development of certain location in the Dudley Square and parts of Dorchester. While one of the best incentives for developers is what’s known as “opportunity zones”, development this year has been largely impacted by tax credit incentives and other programs. About half of the opportunity zones in Massachusetts are located in lower income “gateway cities,” which happen to also be covered by state incentives like the Housing Development Incentive program. Additionally, The Seaport continues to grow and expand. Even with the news that General Electric will no longer build an anticipated $200 million development along Fort Point Channel, Boston officials still expect an intense amount of demand for the now-available property. It remains to be seen what will be built in this land, however it is clear that the heavy demand confirms that development and investment in the Seaport is still strong. Thus, Boston and its surrounding suburbs is a great place for investors to look for commercial mortgage financing.
The Boston multifamily market offers much upside for those commercial real estate investors looking for apartment loans. While Boston’s multifamily market saw remarkable strength after the Great Recession of 2008, those conditions have now moderated moving the rental market from exceptional to simply healthy. Even though the local economy has slightly slowed down, the apartment development pipeline has still been active, with a high level of new apartment and multifamily units to be added to inventory this year. While Boston was among the first cities to recover the jobs it lost in 2008, it has not necessarily had one of the most vigorous recoveries as jobs grew 1.8 percent last year, just .1 percent higher than the national average. However, Boston’s diverse economy is low risk and stable. The city’s economy should perform predictably (but at right below national average rates). With vacancy rates below 4 percent, Boston has maintained an incredibly stable rental market, due to its position as the financial capital of the New England region. Boston’s time-consuming development approval process has created an environment where existing multifamily and apartment projects are well-received by the market. Boston’s above-average land prices and rent levels strongly indicate the ample demand for new supply in the overall multifamily market. Thus, commercial real estate investors should definitely look into receiving an apartment loan in this region.