Ohio Commercial Mortgage Loans from $1,000,000+
Ohio Commercial Mortgage Rates - Rates updated April 1st, 2020
|Loan Product||Starting Rates||LTV|
|Single Tenant Lease Rates||3.54%||Up to 75%||Get Free Quote|
|Commercial Mortgage Rates||3.84%||Up to 75%||Get Free Quote|
|Multifamily Mortgage Rates||3.57%||Up to 80%||Get Free Quote|
|Business Real Estate Loans||3.64%||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 Ohio. 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. Ohio 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 OH 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.
Ohio Commercial Mortgage Benefits
Ohio commercial mortgage rates start as low as 3.57% (as of April 1st, 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.
Ohio Commercial Mortgage Loan Options
We arrange commercial mortgage financing in the state of Ohio 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.
Ohio Commercial Mortgage Information and Economic Overview
Ohio is the seventh largest economy in the United States with a gross state product of over $650 billion. If Ohio were its own country its economy would rank as the 21st largest economy in the world. A few years ago, Ohio was ranked in the top ten states in the country for best business climate. Ohio is frequently considered to be the Industrial Capital of America, dating to its roots in the Rust Belt and Ohio's present-day scientific and intelligence dominance. Ohio has a very active commercial real estate market and is highly regarded by lenders offering commercial mortgage financing. Here are some quick facts:
- Ohio is home to almost 2.4 million commercial properties.
- With 1.3 million parcels, land is the largest property type in Ohio leaving much potential for commercial real estate development.
- The state of Ohio contains 200,000 multifamily properties.
- About 275,000 of Ohio's commercial properties are currently located in Qualified Opportunity Zones with high investment upside.
Overall the Ohio apartment market ranks among the most consistent in the nation in terms of performance making Ohio a terrific place to receive commercial mortgage financing. There has been a tempered supply growth in multifamily units resulting in strong rent gains in various markets. These trends are expected to continue as vacancy in all the Ohio’s big markets remains below 5 percent. There is a lot upside potential in the Class C sector, where a housing shortage continues across the Ohio market. Vacancy is lowest in this segment with below average rent hikes. The Cincinnati multifamily market is very hot right now. We have been witnessing Steady demand across all apartment classes. Over the past four years the demand for rental units in Cincinnati has been stable, bolstering absorption totals that outmatched supply additions. The city’s economic strength has supported the growing demand pool as people move into the region in search of new employment opportunities. The wide reach of the demand pool here bodes well for existing property performance and future development. Commercial real estate builders are doing most of their work near the core of the city, where new developments will provide residents a highly amenitized experience in proximity to work and leisure venues. Cleveland is also a very intriguing spot for commercial real estate and multifamily investment. Downtown Cleveland has remained the focal point of the city’s current real estate development. The city’s rental market has turned around recently, with heightened demand diminishing the vacancy rate by 170 basis points. Throughout this period development has remained strong with more than 2,000 multifamily units added to the local inventory.
Ohio’s average rent is typically lower than the national average. Apartments in Cleveland are the state’s most expensive, with an average rent of $1,081 per month. Cincinnati apartments rank second with an average monthly rent of about $975 followed by Columbus with average monthly rents of just under $924. Ohio’s cheapest cities to rent in are Toledo at a meager $714 per month and Dayton at just $765 per month. That being said Dayton rents are trending upwards (renters are paying $34 more per month than they did in April of last year) as the city is experiencing growing rents, with apartment prices increasing by 4.7% year over year. Behind Dayton, Cleveland apartments had the second highest rental rate increase in Ohio, with increases of 4% or $42 more expensive than the same month last year. Ohio’s slowest rising rents were in Akron with a small increase of 2.1%, and in Toledo, where rents rose by just 2.3% year over year. In terms of commercial mortgages, there are over 2 million mortgages for commercial real estate properties throughout the state of Ohio. The average value of these mortgages is just above $6 million, 14% above the United States average. This information shows that Ohio is a wonderful place to take out a commercial mortgage loan.