North Carolina Commercial Mortgage Loans from $1,000,000+
North Carolina Commercial Mortgage Rates - Rates updated April 4th, 2020
|Loan Product||Starting Rates||LTV|
|Single Tenant Lease Rates||3.55%||Up to 75%||Get Free Quote|
|Commercial Mortgage Rates||3.85%||Up to 75%||Get Free Quote|
|Multifamily Mortgage Rates||3.58%||Up to 80%||Get Free Quote|
|Business Real Estate Loans||3.65%||Up to 90%||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 North Carolina. 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. North Carolina 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 NC 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.
North Carolina Commercial Mortgage Benefits
North Carolina commercial mortgage rates start as low as 3.58% (as of April 4th, 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!"
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.
North Carolina Commercial Mortgage Loan Options
We arrange commercial mortgage financing in the state of North Carolina 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.
North Carolina Commercial Mortgage Information and Economic Overview
Investors looking for a good place to put their money would benefit by looking into commercial mortgage financing in North Carolina. Here are some quick facts about commercial real estate in the state:
- There are nearly 1.8 million investment properties in North Carolina.
- Vacant land is the largest property type in North Carolina with more than 1 million of the state's parcels creating much potential for developers looking for commercial mortgage loans.
- There are only about 82,000 multifamily buildings in North Carolina.
- About 219,000 of the investment properties in North Carolina are situated in Qualified Opportunity Zones.
The average value of commercial real estate properties in North Carolina is roughly $290,000 while the median sales price of these properties is about $177,000. In the last two years there have been close to 151,000 sales; with 57,560 sales greater than $250,000, about 10,400 properties sold for over $1,000,000, and around 1,300 appraised at over $10,000,000. The average price per square foot of commercial properties in North Carolina over the last two years is $112 while the average lot size of these properties is 41,694 square feet, 52% above the United States average. There are close to 1.8 million commercial real estate properties in the state, 187% below country’s average, with a total acreage of about is 15 million acres. In terms of commercial mortgages, there are about 819,000 mortgages for commercial properties throughout North Carolina. The average value of these commercial mortgages is roughly $4.9 million, 6% below the United States average. This data demonstrates that North Carolina is a wonderful place for investors to pursue commercial mortgage loans.
The office space market is thriving in the Raleigh-Durham area. This metro’s population is relatively younger than the national average at 36.4 versus 38.5 years of age. Additionally, The Raleigh Metro has been rated as a top 5 metro for STEM leadership. Moreover, The Research Triangle region has more than 192,000 students enrolled in higher education and over 44,000 graduates entering the workforce each year. Both the quantity and quality of Raleigh-Durham’s developing workforce have caused the metro to gain attention on the national stage, leading to an infusion of capital into and huge economic expansion in the metro area. This boom has led to an increase in demand for much more office space in the region. As demand for office space has increased, investor interest in this sector in has followed suit. This has a led to a higher volume of office space sales in 2019 than there were in 2018. Investors looking to purchase office space in the region should definitely look into receiving commercial mortgage financing to assist with a purchase.
In terms of the multifamily sector, Raleigh-Durham is thriving with no signs of slowing down and is the perfect place for investors to procure apartment loans in North Carolina. Just like its impact on the office space market, the impressive talent pool coming from the top universities in the region continues to ignite the economy, leading developers to construct new apartment buildings. Increases in higher salary positions have attracted young professionals to the area leading to a heavy demand for both residential and commercial real estate to accommodate this growing workforce. For example, a 300-unit multifamily building including a ground-floor retail space has recently been developed in the area. As of June 2019, the Raleigh-Durham area had 9,257 multifamily and apartment units under construction, with 5,800 of them scheduled to be delivered this year. Despite the addition of more than 26,000 multifamily and apartment units during the past five years, rent growth has not been negatively impacted as rents are expected to rise 4% in the 2019 calendar year. Thus, there is no better time for eager commercial real estate investors to receive apartment loans to help break into this thriving multifamily market.