Michigan Commercial Mortgage Loans from $1,000,000+
Michigan Commercial Mortgage Rates - Rates updated February 22nd, 2020
|Loan Product||Rates (start as low as)||LTV||Amortization|
|Commercial Mortgage Rates||3.85%||Up to 75%||Up to 25 years|
|Multifamily Mortgage Rates||3.51%||Up to 80%||Up to 30 years|
|Business Real Estate Loans||3.65%||Up to 90%||Up to 30 years|
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 Michigan. 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. Michigan 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 MI 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.
Michigan Commercial Mortgage Benefits
Michigan commercial mortgage rates start as low as 3.51% (as of 02/22/20)
• 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!"
Michigan Commercial Mortgage Loan Options
We arrange commercial mortgage financing in the state of Michigan 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.
Michigan Commercial Mortgage Information and Economic Overview
With a gross state product ranked in the top 15 in the country, Michigan is a great place for investors to procure commercial mortgage and multifamily financing. The average value of commercial real estate properties in Michigan is roughly $141,000 with a median sales price of just over $91,200. Over the last two years there have been about 67,500 commercial sales in the state; about 17,200 of them sold for more than $250,000, almost 2,000 were valued at over $1,000,000 and just under 70 were appraised at over $10,000,000. The average price per square foot of these estate properties in the state is $50 while the average lot size of these properties 26,935 square feet, 9% above the United States average. There are about 1.5 million commercial real estate properties in Michigan, 190% below the country’s average, with a total acreage of almost 35 million acres. In terms of commercial mortgages, there are roughly 464,000 mortgages for commercial real estate properties throughout the state of Michigan. The average value of these mortgages is about $22.5 million, 124% above the United States average. Thus, Michigan is a wonderful place for investors to receive commercial mortgage financing in order to break into the market.
Within Michigan, the Detroit metro area is a great place for investors to take out commercial mortgage loans. Last year, commercial real estate property values in Detroit rose 35 percent, to more than $4.5 billion, after the city completed its reassessment of commercial those properties. Furthermore, industrial property values jumped 18 percent, from $513 million to $629 million, last year. The rising value of retail and office building property in Detroit's neighborhoods happened just as the residential market rose about 12 percent throughout the city. Experts remain optimistic for both short-term and long term investing as there continues to be high demand for commercial properties in the Ann Arbor suburb of Detroit. This market continues to see lots of new companies and startups interested in Ann Arbor or are starting in Ann Arbor that are both entrepreneurial and technology driven. The University of Michigan is in many ways driving these new companies and experts believe that this institution will serve as a catalyst for new entrepreneurs looking to make a mark on the area. The vacancy rate for office and flex space in Ann Arbor fell from 7.2 percent to 6.4 percent last year. There are multiple factors that impacted this rate decrease. Demand is a huge factor. As companies continue to grow, we have seen a higher demand for space and decreasing vacancies in the market. This data indicates that those looking to break into the larger Detroit commercial real estate market should definitely consider taking out a commercial mortgage loan.
The Detroit multifamily and apartment market is thriving as well. Huge developments have transformed the city’s central districts, attracting both businesses and residents alike. This attraction has led to big employment gains in the construction industry with gains up to 4,600 jobs and many new multifamily and apartment developments. Monroe Blocks, an $830 million mixed-use building currently in development, is estimated to bring 1.4 million square feet of office, residential, retail and public space to the downtown area. At the same time Ford is redeveloping Michigan Central Station in the Corktown neighborhood while housing 2,500 company employees and 2,500 workers from partners and suppliers. Due to both the market’s attractive yields and low entry costs, multifamily and apartment investors mainly focused on Class B and C assets with a value-add component. After the completion of only 306 apartment units last year, experts expect deliveries to hit a cycle high in this year, with 2,730 units anticipated to open up. At the same time, demand is expected to keep up, strengthening a steady rent growth of 2.7 percent over the course of the year. Thus, investors should look into receiving an apartment loan to break into this thriving multifamily market.