New Haven Commercial Mortgage Loans
$1,000,000 Minimum

New Haven 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
New Haven Commercial Real Estate New Haven 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 New Haven. 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. New Haven 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 New Haven 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.

New Haven Commercial Mortgage Benefits

New Haven commercial mortgage rates start as low as 3.02% (as of May 17th, 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

New Haven Multifamily Loan Information

New Haven Economic Trends New Haven Economic Trends

Greater Development Nudges Vacancy Up; New York Investors Find Higher Yields, Less Rent Restriction

New Haven construction activity inches vacancy up from historical lows. The two-county region continues to exhibit slow-but-steady job creation across a range of disciplines this year, driven by the presence of multiple Fortune 500 companies. Employment opportunities are supporting household formations, adding new apartment demand to the current pool of renters. Multifamily leases are also sought by residents who work in New York but opt for longer commutes in favor of less costly apartment rents. These two sources of multifamily housing demand have contributed to a multiyear decline in the market’s overall vacancy rate, down 210 basis points since 2016 to 3.9 percent at the end of last year. That trend will be tested in 2020 as operations receive upward pressure from the largest annual apartment delivery total recorded so far this business cycle. Development activity is advancing the most in New Haven, with more than 1,700 multifamily units slated to come online by year end. Many of these arrivals are near major highways and railways, reflecting the transit needs of tenants. Finalizations will also come to downtown Stamford and Harbor Point, where years of development have created a live-work-play environment. Investors looking to purchase property in the New Haven market should definitely look into taking out an apartment loan to finance their acquisition.

New Haven and Bridgeport lead a near-cyclical-high level of sales velocity. Apartment vacancies near historical lows have bolstered investor sentiment, supporting an elevated level of transaction velocity compared with earlier in the decade. Buyers continue to be active within the city of New Haven, where organizations with more than $20 million in available capital target Class B multifamily assets downtown near Yale University and other major employers. Investors in the $1 million to $10 million tranche are also acquiring smaller Class C apartment properties in the city, as well as in the Bridgeport area with greater frequency. Such properties serve renters priced out of the market’s other multifamily rental options. Despite fewer listings, investor demand for downtown Stamford and Harbor Point assets contributes to above-market pricing, with a greater supply of post-2000 construction available. New Haven is a great market for investors to finance their next apartment purchase with a multifamily loan.

2020 New Haven Multifamily Market Forecast

New Haven Completions vs. Absorption New Haven Completions vs. Absorption

The New Haven National Multifamily Index Rank is at 46, down 7 places. A large construction pipeline, rising vacancy and slowing employment gains and rental growth result in New Haven dropping in the 2020 NMI.

Employment in New Haven is up 0.3%. The employment base will grow for the third year in a row as the region’s employers create 2,600 positions this year after 3,000 jobs were created last year.

Construction in New Haven is expected to exceed 2,200 apartment units. The pace of completions is picking up in New Haven for 2020 as about 900 more apartments will be delivered compared with the development total from 2019.

Vacancy in New Haven is up 20 bps. Elevated construction will help push the region’s vacancy rate up to 4.1 percent, following a 60-basis-point drop last year.

Rent in New Haven is up 1.8%. The average effective rent will climb to $1,852 per month this year, following a 2.4 percent increase in 2019.

Investment opportunities in New Haven remain strong for those looking to finance their next purchase with an apartment loan. New York-based investors, already active in southern Connecticut due to higher cap rates, may increase their presence in the region following new rent controls imposed at home. We highly recommend any investors looking to buy in the New Haven market to reach out to us regarding a multifamily loan.

Data provided by Marcus & Millichap.

Commercial Mortgage Rate Trends in 2020

New Haven Vacancy and Rents New Haven 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

New Haven Sales Trends New Haven 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.

New Haven 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 New Haven 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.

New Haven Commercial Mortgage Loans

Select Commercial provides commercial mortgage loans and multifamily financing throughout New Haven and the state of Connecticut including, but not limited to, the areas below.

Belltown • Camp Avenue • City Center • Club Road • Cummings Park • Eden • High Ridge • Ledgebrook • North Stamford • Nottingham • Ridgeway • Rippowam • Shippan Point • South End • Springdale • The Cove • Turn of River • Upper Newfield • Waterside • Westover • West Side