Oakland Commercial Mortgage Loans
Oakland Commercial Mortgage Rates - Rates updated June 23rd, 2021
|Loan Product||Rates (start as low as)||LTV|
|Multifamily Mortgage Rates (Over $6,000,000)||2.57%||Up to 80%||Get Free Quote|
|Multifamily Mortgage Rates (Under $6,000,000)||3.17%||Up to 80%||Get Free Quote|
|Single Tenant Lease Rates||3.42%||Up to 75%||Get Free Quote|
|Business Real Estate Loans||3.67%||Up to 90%||Get Free Quote|
|Commercial Mortgage Rates||3.67%||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 Oakland. 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. Oakland 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 Oakland 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.
Oakland Commercial Mortgage Benefits
Oakland commercial mortgage rates start as low as 2.57% (as of June 23rd, 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!"
Oakland Multifamily Loan Information
Blossoming Tech Scene Breathing More Life Into Oakland; Value-Add Options Remain Widespread
Tech firms like Square setting stage to boost Oakland presence. Apartment availability in Oakland remains tight, staying near 4 percent as sustained job creation in the urban core drives market wide multifamily rental demand. Mobile payment processor Square recently moved into a 356,000-square-foot building in downtown Oakland with the capacity to hold 2,000 employees, putting even more pressure on the area’s already-tight apartment vacancy rate. This move could spur more relocations to Oakland as companies seek lower business costs in a market with high growth potential. Additional employment gains are supported by increased venture capital investment into Oakland-based startups, providing these firms with more power to expand and create opportunities for job seekers. To account for the expected pool of new jobs, multifamily developers are elevating their interest in Oakland as 4,600 apartment units are on tap for 2020, the highest annual total this millennium. Much of the focus will be on the urban core, where a variety of 200-plus unit apartment complexes are on track for finalization, although neighborhoods around the University of California, Berkeley will also witness substantial construction activity. Investors looking to purchase property in the Oakland market should definitely look into taking out an apartment loan to finance their acquisition.
Commuter suburbs giving investors higher-yield options. Strong asset appreciation continues to drive apartment investment in Oakland as the average price per multifamily unit has risen 25 percent to $290,600 since the end of 2016. While the recently implemented statewide rent control measure may impact appreciation rates moving forward, Oakland’s strengthening economy and expanding white-collar labor force remain strong selling points to many buyers. Downtown Oakland will stay popular for investors seeking Class C multifamily assets as apartment units can be purchased for the metro average and cap rates in the mid-4 percent range can be attained. Suburban communities such as Alameda, Hayward and Richmond will also remain targeted areas for workforce housing as returns are higher, extending into the mid-5 percent band, 60 to 70 basis points above the market average. Oakland is a great market for investors to finance their next apartment purchase with a multifamily loan.
2020 Oakland Multifamily Market Forecast
The Oakland National Multifamily Index Rank is at 11, down 2 places. An uptick in vacancy steadies rent growth, reducing Oakland’s rank in the Index this year.
Employment in Oakland is up 1.1%. Organizations will slow their pace of hiring this year as just 13,300 workers are added to payrolls. In 2019, job creation reached 19,000 employees.
Construction in Oakland is expected to exceed 4,600 apartment units. Construction will hit its highest level in more than two decades as builders look to provide some relief to the area’s tight conditions.
Vacancy in Oakland is up 20 bps. Development will be most pronounced in the urban core. Amid an influx of new units, market vacancy will climb to 4.1 percent. Last year, the reading remained flat at 3.9 percent.
Rent in Oakland is up 3.1%. The average effective rent will rise steadily to $2,495 per month in 2020, building on last year’s 4.9 percent boost.
Investment opportunities in Oakland remain strong for those looking to finance their next purchase with an apartment loan. Rental demand in Oakland’s suburbs will continue to grow as residents get priced out of the core, providing investors opportunities in suburban areas with near-3 percent vacancy rates. We highly recommend any investors looking to buy in the Oakland 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.
Oakland 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 Oakland 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.
Oakland Commercial Mortgage Loans
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