Oakland Apartment Building Loans

At Select Commercial, our primary expertise in is in apartment/multifamily financing. We're dedicated to providing the most competitive rates and tailored solutions for multifamily investments in the area. However, if you're also exploring broader commercial real estate opportunities in other areas of California, our state-specific commercial mortgage page offers a wealth of information and resources. 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.

Oakland Multifamily Loan Rates - updated 03/28/24

Multifamily Loan > $6Million Get Free Quote
Loan Type Rate* LTV
Multifamily 5 Yr Fixed 5.42% Up to 80%
Multifamily 7 Yr Fixed 5.38% Up to 80%
Multifamily 10 Yr Fixed 5.37% Up to 80%
Multifamily Loan < $6Million Get Free Quote
Loan Type Rate* LTV
Multifamily 5 Yr Fixed 5.88% Up to 80%
Multifamily 7 Yr Fixed 5.79% Up to 80%
Multifamily 10 Yr Fixed 5.70% Up to 80%
*Rates start as low as the rates stated here. Your rate, LTV and amortization will be determined by underwriting.

Oakland Multifamily Loan Benefits

Oakland Apartment Loan rates start as low as 5.37% (as of March 28th, 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 multifamily financing 
• Terms and amortizations up to 30 years 
• Multifamily loans for purchase and refinance, including cash-out 
• 24 hour written pre-approvals with no cost and no obligation

Our Reviews

Latest Expert Insights from Stephen A. Sobin

Stephen A. Sobin, the president of Select Commercial Funding LLC, is a renowned expert in the field of multifamily financing. His insights and perspectives are regularly sought by leading industry publications. Here are his latest contributions that highlight his deep understanding of the multifamily financing landscape and his commitment to providing clear, insightful analysis on key industry issues.

Commercial Spotlight: Mid-Atlantic Region In this four-state powerhouse, smaller metros are thriving.

In a feature in Scotsman Guide, the Mid-Atlantic Region's real estate dynamics are explored, highlighting its resilience and growth amidst the pandemic.

Stephen Sobin of Select Commercial Funding LLC shared insights on the New York market's allure and the challenges buyers face. He noted the shift from primary urban areas to tertiary markets due to evolving preferences and financial conditions. For a deeper dive into Sobin's analysis, read the full article.

What the New Jobs Report Means for CRE

In an article titled "What the New Jobs Report Means for CRE" in Commercial Property Executive, Stephen Sobin shared his perspective on the latest jobs report and its implications for the Commercial Real Estate (CRE) sector. He highlighted the challenges posed by high interest rates and the prevailing uncertainty in the market. Sobin remarked, "Sellers aren’t selling, buyers aren’t buying... Everyone is waiting because no one knows what to expect." For a detailed analysis and more of Sobin's insights, read the full article.

Decoding "Junk Fees" in Rental Housing

In another latest contribution to Multi-Housing News, Sobin provided expert commentary in an article titled "What's Next for Junk Fees? The Industry Weighs In". He clarified the difference between legitimate fees collected for various third-party services and so-called "junk fees". Sobin emphasized the importance of borrowers understanding their rights in negotiating all loan terms and the obligation of lenders to disclose all fees.

Understanding the Impact of Federal Reserve's Decisions

In a recent article titled "How the Fed's Pause on Interest Rates Impacts Multifamily" published by Multi-Housing News, Sobin shared his expert insights on the Federal Reserve's decision to pause interest rate hikes. He accurately predicted that the Fed would not raise rates in June, citing recent bank failures and lingering concerns about a potential recession.

Stay tuned for more expert insights from Stephen A. Sobin on the evolving multifamily financing landscape.

 

Frequently Asked Questions

Is multi-family real estate a good investment in 2023?

Inflation fears, high interest rates, and the prospect of recession have slowed the pace of the commercial real estate market considerably. Some property types are outperforming others. Apartment buildings in desirable neighborhoods are performing well, as owners have been able to raise rents and keep up with rising interest rates. Multifamily properties in smaller and less desirable areas, or areas where unemployment is rising, are not performing as well, as rent increases are harder to implement. In the office sector, only medical office buildings are generating lender interest. General office properties have underperformed the market as a result of the work from home policies established during the Covid-19 pandemic. Office demand is unlikely to return to pre-Covid levels making the office sector extremely hard to navigate right now. In the retail sector, essential service businesses, such as grocery stores and pharmacies, are performing well, while traditional brick and mortar retailers are still feeling the effects of Covid-19 and the competition from online retailers. Many malls are experiencing record high vacancy levels, and some are being repositioned for other purposes. In the industrial sector, we are seeing strong demand for warehouse and distribution space to accommodate the online retailers. Industrial space in urban markets and close to transportation are performing very well. We expect to see sales prices for underperforming properties to drop in 2023 as investors gravitate to better positioned properties.

 

There are many different types of lenders offering a myriad of different loan products to finance the acquisition or refinance of apartment properties nationwide. These lenders include agency lenders (Fannie Mae and Freddie Mac), local and national banks, insurance companies, credit unions and private lenders.

Most lenders write apartment loans for five, seven or ten years (fixed) with a 30 year amortization. It is also possible to obtain loans that are fixed for up to 30 years, although this is not the norm. Rates are typically based on a margin over the corresponding US Treasury rate.

Lenders offer non-recourse to strong borrowers and solid properties. The borrower will be expected to have strong credit, good net worth and liquidity, and experience owning and managing similar properties. The property will be expected to demonstrate solid long term positive cash flow, be in good to excellent condition, and be located in a strong market with low vacancy rates.

Apartment loans are typically screened and pre-approved in 2-3 days. Since lenders require appraisals, environmental and property condition reports, and title, closings will usually take 45-60 days from application.

Recent Banking Failures Likely To Impact California Multifamily Lending

The recent collapse of Silicon Valley Bank and Signature Bank has sent shockwaves through the business and real estate lending sectors. As a leading CA commercial mortgage broker with over 30+ years of experience, Select Commercial knows that the multifamily sector is not immune to these developments. Here's how these banking failures could impact multifamily lending:


Regional Banks Under Pressure

Regional banks, which provide significant liquidity to the apartment sector, are likely to face increased pressure. The collapse of SVB and Signature Bank has raised concerns about the stability of smaller banks. This could lead to a pullback from regional banks providing loans to the multifamily sector, making it more challenging for developers and investors to secure financing.


Development Challenges

Developers could face significant challenges, particularly in securing construction loans and value-add renovation dollars. The current environment is leading to a slowdown in construction lending and a return to traditional underwriting and banker skepticism. This could particularly impact the affordable housing sector, where developers need their financing lined up to secure tax credits.


Volatility in the CMBS Market

CMBS loans have experienced turbulence following the bank failures. This volatility could impact a new crop of lenders that have emerged over the past half-decade, many of which are capital markets-dependent. If the securitization market stabilizes, some of the CMBS and bridge lenders may re-enter the market to fill the liquidity gaps left by regional lenders.


Interest Rate Uncertainty

The bank failures could also contribute to uncertainty around commercial mortgage rates. If these failures lead to a slowdown in rate hikes by the Federal Reserve, this could potentially benefit the commercial real estate market in the long run. However, it's too early to predict the exact impact on apartment transaction volume.


In summary, the recent banking failures have the potential to significantly impact how banks handle multifamily loans. We will closely monitoring these developments to provide the best advice and service to my clients during these uncertain times.

 

Apartment Loan Basics

Apartment Loan Types We Serve

If you are looking to purchase or refinance a Oakland apartment building, don't hesitate to contact us. We arrange financing in the city of Oakland for the following:

  • Large urban high-rise multifamily buildings
  • Suburban garden multifamilycomplexes
  • Small multifamily buildings containing 5+ units
  • Underlying cooperative multifamily building loans
  • Portfolios of small multifamily properties and/or single-family rental properties
  • Other multi-family and mixed-use properties

 

Apartment Loans - Lending Options

Apartment Loan Helpful Articles

How to Get the Best Rate on a Multifamily Loan
How to Buy an Apartment Building
Uncomplicated Underwriting
How to Invest in an Apartment Building
Are You Shopping for an Apartment Building Loan?
How To Get The Best Rates On An Apartment Refinance

Recent Multifamily Loan Closings

Oakland Multifamily Loan: Economic Recovery and Return to Office Boosting Oakland's Apartment Sector

Oakland apartment supply and demand

Oakland, a part of the Bay Area, is experiencing an economic revival from the health crisis, which is positively impacting the local apartment market. Unlike San Francisco or San Jose, Oakland has a smaller proportion of office-based jobs, making its renters less inclined towards remote work. This factor has been beneficial for the local property market during the early stages of the pandemic.

Now, as the Bay Area sees a gradual return to office work, Oakland's rental market stands to gain even more. Professionals with flexible work schedules may choose to commute longer distances in exchange for lower monthly rents in Oakland. This demand is further bolstered by local job growth. However, Oakland is not exempt from broader economic trends affecting the region, such as tech sector layoffs as companies brace for future challenges.

The surge in interest rates that began last year and continues into 2023 has put a spotlight on capitalization rates. Investors seeking higher yields may be drawn to the East Bay, which typically offers better returns than San Francisco and San Jose. Within the metro area, East Oakland offers higher returns than the core, potentially maintaining its sales momentum this year.

Meanwhile, investors with substantial capital may continue to focus on core assets, particularly properties built in the last two decades. Last year, rent regulations in Oakland city were tightened, with annual rate adjustments now set to the lesser of 60 percent of the change in CPI, or 3 percent. Consequently, investors looking for value-add opportunities may shift their focus to other market areas, although some costs of capital improvements may still be passed on as rent increases on a case-by-case basis.


2023 Oakland Multifamily Market Forecast

Oakland rent trends

Employment is up 0.7%. Despite a slowing economy, 8,000 new jobs will be added in 2023.

New construction will add 3,600 apartment units. New construction levels exceed average this year and the apartment stock will increase by 1.6%. Most of the new units are in the downtown area.

Vacancy rates are up 30 basis points. Increasing demand almost keeps pace with new additions, with vacancy rates hitting 4.5% in 2023.

Apartment rents are up 3.0%. Rent growth slows after an 8.5% increase in 2022. The average monthly rent will hit $2,760.

Whether you are purchasing or refinancing, we have the right solutions available for your multifamily mortgage loans. We will entertain apartment loan requests of all sizes, beginning at $1,500,000. Get started with a Free Commercial Mortgage Loan Quote.


Oakland Apartment Loans

Select Commercial provides apartment loans throughout Oakland, California including, but not limited to, the areas below. We provide apartment loans in most major cities throughout the United States.

Acorn Industrial, Adams Point, Allendale, Arroyo Viejo, Bartlett, Bella Vista, Broadway Auto Row, Brookfield Village, Bushrod, Caballo Hills, Castlemont, Chabot Park, Chinatown, City Center, Civic Center, Cleveland Heights, Clinton, Coliseum, Coliseum Industrial, Columbia Gardens, Cox, Crestmont, Crocker Highland, Dimond, Downtown, Durant Manor, East Peralta, Eastmont, Eastmont Hills, Elmhurst Park, Fairfax, Fairfax Business, Fairview Park, Fitchburg, Foothill Square, Forestland, Fremont, Frick, Fruitvale Station, Glen Highlands, Glenview, Gold Coast, Golf Links, Grand Lake, Hacienda, Harrington, Harrison Street, Havensourt, Hawthorne, Hegenberger, Highland, Highland Park, Highland Terrace, Hiller Highlands, Ironworks District, Iveywood, Ivy Hill, Jack London Square, Jefferson, Lake Merritt District, Lakeshore, Lakewide, Laney, Las Palmas, Laurel, Leona Heights, Lincoln Highlands, Lockwood Tevis, Loft District, MacArthur Maze, Maxwell Park, Mcclymonds, Meadow Brook, Melrose, Merritt, Merriwood, Mills College, Millsmont, Montclair, Montclair Business, Mosswood, North Kennedy Tract, North Stonehurst, Northgate, Oak Center, Oak Tree, Oakmore, Old City, Old Oakland, Patten, Piedmont Avenue, Piedmont Pines, Pill Hill, Prescott, Produce and Waterfront, Ralph Bunche, Rancho San Antonio, Redwood Heights, Rockridge, San Pablo Gateway, Sausal Creek, School, Seminary, Sequoyah, Shafter, Sheffield Village, Shepherd Canyon, Skyline - Hillcrest Estates, Sobrante Park, South Kennedy Tract, South Prescott, South Stonehurst, St. Elizabeth, Temescal, Toler Heights, Trestle Glen, Tuxedo, Upper Dimond, Upper Laurel, Upper Peralta Creek, Upper Rockridge, Uptown, Waterfront Warehouse District, Waverly, Webster, West Oakland, Woodland, Woodminster.