Modesto Commercial Mortgages
At Select Commercial, we pride ourselves on 35+ years of experience helping clients in Modesto with their commercial mortgage needs. Our commitment to excellence has helped create our reputation as a top-tier broker in the area. If you're specifically interested in a Modesto multifamily loan, we have dedicated resources to guide you. For those seeking comprehensive rates on all loan products available across the 48 states, our comprehensive commercial mortgage rate page offers competitive rates for loans starting at $1,500,000. Discover the latest trends in Modesto commercial mortgage rates as we approach the close of 2024.
Modesto Commercial Mortgage Rates - updated 12/21/24
| Minimum Loan Size $1,500,000 | Get Free Quote | ||
|---|---|---|---|
| Loan Product | Rate* | LTV | |
| Multifamily | 5.36% | Up to 80% | |
| Commercial Real Estate Loan | 6.70% | Up to 75% | |
| Single Tenant Lease | 6.40% | Up to 75% | |
| Business Real Estate Loan | 6.60% | Up to 90% | |
Modesto Commercial Mortgage Benefits
CA commercial mortgage rates start as low as 5.36% (as of December 21st, 2024)
• A commercial mortgage broker with over 30 years of lending experience
• No upfront application or processing fees
• Simplified application process
• Up to 80% LTV on multi family , 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
Our Reviews
Some commercial mortgage lenders lock rates at application, some lenders lock rates at commitment, while others lock rates prior to closing. We are currently in the midst of an increasing rate environment. Rates quoted at application may increase dramatically during the loan application progress, if not locked. It is very important to understand your lender’s procedure upfront to avoid potential confusion.
In order for a commercial mortgage lender to issue a firm loan approval, they will want to understand the financial condition of the borrower, as well as the fundamentals of the property. The borrower will be expected to supply his personal financial statement showing total net worth and liquidity. He will also need to provide a schedule of real estate owned demonstrating experience managing similar properties. Lastly, the borrower’s credit scores will needed. For the subject property, lenders will look closely at the current rent roll, operating statements showing income and expenses, copies of all leases, and other pertinent property information.
Commercial mortgage rates are determined by many different factors, including property type, location of the property, loan-to-value ratio, debt service coverage ratio, debt yield, borrower’s net worth, liquidity, credit rating and level of experience. Commercial mortgage lenders look at all of these factors to determine the riskiness of the loan before setting rates. Loans with the lowest risk profile will get the best commercial mortgage rates. As the potential risk increases, commercial mortgage rates usually increase.
Commercial mortgage loans are viewed differently by lenders than residential loans. Home loan lenders look strictly at the borrower’s income and credit in order to qualify. Commercial mortgage lenders look at the subject property’s rent roll, operating statements, and other factors to determine the cash flow or net income potential. Very strong (low risk) commercial mortgage loans might be priced lower than home loans, while weaker performing properties (higher risk) might be priced higher.
Most commercial mortgage loans today are fixed for 5, 7, or 10 years and come with a 25-30 year amortization schedule. Loans can be recourse (personal guarantee) or non-recourse (no personal guarantee). Commercial mortgage loans typically carry prepayment penalties, whereas residential home loans usually do not. Specific terms will be determined by your lender’s underwriting team after your application is reviewed.
Commercial mortgage lenders typically lend up to 75-80% on an apartment purchase (down payment of 20-25% necessary). On other types of commercial property, commercial mortgage lenders will typically lend up to 70-75% (down payment of 25-30% necessary). An exception is for owner occupied business real estate (such as a business owner buying his own property). Owner/users may qualify for up to 90% LTV financing.
Select Commercial is a leading commercial real estate loan provider. We have excellent commercial real estate loan products and options available for owners and purchasers of commercial real estate. While we lend across the entire continental United States, we are able to give our best commercial mortgage rates and loan programs to certain areas that we feel are strong markets. Modesto 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. As an experienced commercial mortgage professional, with over 30 years of lending experience, we have many sources of capital to choose from when placing a commercial mortgage request with a lender. Having many lenders to choose from gives us advantages over any one individual source. Finding the lender that fits the needs of each client is what we do best. In the end, you get the best rate and terms available. If you are looking to obtain a 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.
Commercial Real Estate Recent Closings
What’s going on with commercial mortgage rates in Modesto as we near the end of 2024?
The Federal Reserve’s Federal Open Markets Committee cut the federal funds rate by 50 basis points at its September 18, 2024, meeting. This was the first rate cut since March 2020, when the Fed began a long series of rate hikes to curb the high rate of inflation. The Fed’s decision shows that they believe that inflation is under control and moving into the 2% range that the Fed has set as its goal. The Federal Reserve took this decisive action to prevent further declines in the labor market. The Fed has further hinted at further cuts at its two remaining meetings in 2024, followed by additional cuts in 2025. This rate cut, along with possible future rate cuts, may create positive investor demand for commercial real estate, and may provide aid for commercial mortgage customers, as well as consumers in general. We must caution, however, that the Federal Reserve cuts affect short term interest rates directly and long-term rates only indirectly. The Prime Rate, which is a short-term rate, dropped from 8.50% to 8.00% with the Fed’s recent action. However, most commercial mortgage rates are based on the 5-, 7-, or 10-year treasury rates, and not the Prime Rate. We have seen these treasury rates actually rise since the Fed took its action. On September 18th, the 10-year treasury was roughly 3.70%. Three weeks later, this rate had jumped to 4.03%. Investors are still concerned about future inflation and are adopting a wait and see attitude.
Modesto Office Commercial Real Estate Insights: Q1 2023
Modesto, situated in the Central Valley of California, has been experiencing shifts in its office real estate dynamics in Q1 2023. The city's office spaces are adapting to the broader regional trends, catering to the evolving needs of businesses in a post-pandemic world.
Office Market Overview:
The demand for office spaces in Modesto has been influenced by the rise of hybrid work models and the increasing preference for remote working. While some businesses are downsizing their office footprints, others are seeking flexible spaces that can accommodate fluctuating workforce sizes.
Adapting to New Work Norms:
Office spaces in Modesto are undergoing transformations to cater to the new work norms. There is a focus on creating collaborative spaces, integrating technology for seamless remote work, and ensuring health and safety protocols are in place.
Future of Office Spaces:
With businesses reevaluating their office space needs, Modesto's office real estate market is poised for changes. The city is expected to see a mix of traditional office spaces and flexible workspaces catering to the diverse needs of businesses.
As businesses navigate the challenges and opportunities of a post-pandemic world, Modesto's office spaces are set to evolve, offering solutions that align with the changing work dynamics.
Modesto Industrial Commercial Real Estate Insights: Q1 2023
Modesto, with its strategic location in the Central Valley, continues to be a focal point for industrial activities. The city's industrial real estate market in Q1 2023 is reflecting the broader trends of the region, catering to businesses ranging from manufacturing to logistics.
Industrial Market Overview:
The industrial sector in Modesto is seeing robust demand, driven by the city's connectivity and its role as a logistical hub. There is a growing demand for modern warehousing facilities, especially with the rise of e-commerce and the need for efficient distribution networks.
Emerging Industrial Trends:
Businesses are seeking industrial spaces equipped with the latest technology to streamline operations. There is also a trend towards sustainable and green industrial facilities, reflecting the broader push towards sustainability in the commercial real estate sector.
With its strategic advantages and the evolving needs of businesses, Modesto's industrial real estate market is set for steady growth in the coming years.
Modesto Retail Commercial Real Estate Insights: Q1 2023
Modesto, with its diverse population and vibrant communities, offers a dynamic retail landscape. The city's retail spaces in Q1 2023 are adapting to changing consumer behaviors and preferences, offering a mix of local boutiques and major retail chains.
Retail Market Overview:
The retail sector in Modesto is undergoing transformations, with a focus on experiential retailing and integrating technology to enhance the shopping experience. There is a growing preference for omni-channel retailing, blending the physical and digital shopping experiences.
Future of Retail Spaces:
Retail spaces in Modesto are not just about shopping; they are about creating memorable experiences. With consumers seeking unique shopping experiences, the city's retail spaces are set to evolve, ensuring a vibrant retail environment.
The retail landscape in Modesto is reflecting the broader trends in the retail sector, with a focus on innovation, customer experience, and adaptability.
Modesto Hotel Commercial Real Estate Insights: Q1 2023
Modesto, located in the Central Valley, attracts both business and leisure travelers. The city's hotels in Q1 2023 are focusing on enhancing guest experiences, ensuring safety, and offering unique stays that cater to the diverse needs of travelers.
Hotel Market Overview:
Hotels in Modesto are integrating technology to offer personalized experiences to guests. There is a focus on health and safety protocols, ensuring that guests have a comfortable and safe stay. The city offers a range of accommodations, from luxury resorts to budget-friendly options.
Adapting to New Travel Norms:
With the changing dynamics of travel, hotels in Modesto are adapting to new norms. There is an emphasis on sustainability, local experiences, and wellness, reflecting the broader trends in the hospitality sector.
Modesto's hotel landscape is set to evolve, with a focus on guest experiences, adaptability, and innovation, ensuring that the city remains a preferred destination for travelers.
What areas of Modesto does Select Commercial provide financing?
Select Commercial provides commercial real estate loans throughout Modesto including but not limited to the areas below.