Milwaukee Commercial Mortgage Loans
Milwaukee Commercial Mortgage Rates - Rates updated August 9th, 2020
|Loan Product||Rates (start as low as)||LTV|
|Multifamily Mortgage Rates (Over $5,000,000)||2.60%||Up to 80%||Get Free Quote|
|Multifamily Mortgage Rates (Under $5,000,000)||3.38%||Up to 80%||Get Free Quote|
|Single Tenant Lease Rates||3.50%||Up to 75%||Get Free Quote|
|Business Real Estate Loans||3.60%||Up to 90%||Get Free Quote|
|Commercial Mortgage Rates||3.80%||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 Milwaukee. 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. Milwaukee 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 Milwaukee 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.
Milwaukee Commercial Mortgage Benefits
Milwaukee commercial mortgage rates start as low as 2.60% (as of August 9th, 2020)
• 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!"
Milwaukee Multifamily Loan Information
Debundling Households Retain Class B/C Demand; Workforce Rentals Providing Solid Cash Flows
Budget-friendly multifamily housing in high-demand; sluggish lease-up of luxury apartment rentals facilitates vacancy increase. More households are being created than individuals added to the population, a phenomenon not common on the national level. The homegrown population is forming new residences as young adults are moving out of family homes or decoupling from multiple roommate living situations. Seeking more suitable multifamily residences, these individuals are often looking to budget-friendly apartment rental options, driving Class B/C vacancy to near cycle lows in the mid-2 to low-2 percent range. Additionally, employers are frequently recruiting students from the numerous local higher-education institutions, and a high percentage of them are being retained within the metro after graduation. With an income to support an upgraded living situation, these individuals are creating new households near their employers, often choosing multifamily rental housing as a cost-effective option as they start their careers. Although these positive trends will maintain steady lease-up for Class B/C apartment units, demand for luxury rentals lags behind deliveries. As new Class A multifamily projects are finalized they will take longer to be leased, resulting in upward pressure on the metro’s overall vacancy this year. Investors looking to purchase property in the Milwaukee market should definitely look into taking out an apartment loan to finance their acquisition.
Suburban mid-tier multifamily assets high on investors’ radar. Tight market conditions for suburban garden-style apartment rentals will deliver sizable rent growth, appealing to a wide range of investors. As multifamily listings remain limited, buyer competition will ramp up supporting comparatively aggressive pricing. In-state investors will concentrate primarily on north and west suburbs, in the corridor between Interstate 41 and I-43. Here, rising apartment rental rates are setting the stage for value-add potential and recent trades capture cap rates in the mid-6 to 8 percent area. Out-of-state buyers will favor newly built multifamily assets in the core, where initial yields have been in the 5 percent range. A highly competitive yield compared to urban core assets in most primary metro markets. Milwaukee is a great market for investors to finance their next apartment purchase with a multifamily loan.
2020 Milwaukee Multifamily Market Forecast
The Milwaukee National Multifamily Index Rank is at 38, down 3 places. Increasing vacancy, a slowdown in rent gains allow other markets to move up and lower the standing for Milwaukee in this year’s Index.
Employment in Milwaukee is up 0.5%. The job growth trajectory eases as 4,600 roles are created. Employers added 5,000 positions in the previous year.
Construction in Milwaukee is expected to exceed 2,200 apartment units. New rentals are brought to market at a more constrained pace than the 2,600 units completed in 2019. Development is scattered between the core and suburbs.
Vacancy in Milwaukee is up 30 bps. While remaining relatively low, vacancy ticks up to 3.6 percent this year as apartment leasing lags behind recent completions.
Rent in Milwaukee is up 3.9%. Robust demand for a limited available supply of garden-style rentals supports the average effective rent growth to $1,218 per month. Last year a 4.5 percent gain was recorded.
Investment opportunities in Milwaukee remain strong for those looking to finance their next purchase with an apartment loan. Class C assets will be heavily targeted by local and regional investors, driving up sale prices. Institutional investors target newly built assets in trendy millennial hubs downtown. We highly recommend any investors looking to buy in the Milwaukee 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.
Milwaukee 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 Milwaukee 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.
Milwaukee Commercial Mortgage Loans
Avenues West, Baran Park, Bay View, Borchert Field, Brewers Hill, Burnham Park, Clarke Square, Clock Tower Acres, Cold Spring Park, Concordia, Downer Woods, Downtown, East Side, Far North Side, Far Northwest Side, Far South Side, Far West Side, Forest Home Hills, Franklin Heights, Grasslyn Manor, Halyard Park, Hampton Heights, Harambee, Harbor View, Hawthorne Glen, Haymarket, Hillside, Historic Mitchell Street, Historic Third Ward, Jones Island, Juneau Town, King Park, Lake Park, Layton Park, Lincoln Village, Lower East Side, Martin Drive, Menomonee River Valley, Merrill Park, Metcalfe Park, Midtown, Miller Valley, Mitchell Park, Murray Hill, Muskego Way, National Park, Near North Side, Near South Side, North Division, Northpoint, Park West, Parkview, Polonia, Riverside Park, Riverwest, Roosevelt Grove, Saint Joseph, Schlitz Park, Sherman Park, Silver City, Southeast Side, Southwest Side, Sunset Heights, Triangle, Triangle North, University Hill, Upper East Side, Uptown, Walkers Point, Walnut Hill, Washington Heights, West Side, Wick Field, Yankee Hill.