Pasadena Commercial Mortgages
At Select Commercial, we pride ourselves on 35+ years of experience helping clients in Pasadena with their commercial mortgage needs. Our commitment to excellence has helped create our reputation as a top-tier broker in the area. If you're specifically interested in a Pasadena multifamily loan, we have dedicated resources to guide you. 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. Discover the latest trends in Pasadena commercial mortgage rates as we approach the close of 2024.
Pasadena Commercial Mortgage Rates - updated 12/21/24
| Minimum Loan Size $1,500,000 | Get Free Quote | ||
|---|---|---|---|
| Loan Product | Rate* | LTV | |
| Multifamily | 5.36% | Up to 80% | |
| Commercial Real Estate Loan | 6.70% | Up to 75% | |
| Single Tenant Lease | 6.40% | Up to 75% | |
| Business Real Estate Loan | 6.60% | Up to 90% | |
Pasadena Commercial Mortgage Benefits
CA commercial mortgage rates start as low as 5.36% (as of December 21st, 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 multi family , 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
Our Reviews
Some commercial mortgage lenders lock rates at application, some lenders lock rates at commitment, while others lock rates prior to closing. We are currently in the midst of an increasing rate environment. Rates quoted at application may increase dramatically during the loan application progress, if not locked. It is very important to understand your lender’s procedure upfront to avoid potential confusion.
In order for a commercial mortgage lender to issue a firm loan approval, they will want to understand the financial condition of the borrower, as well as the fundamentals of the property. The borrower will be expected to supply his personal financial statement showing total net worth and liquidity. He will also need to provide a schedule of real estate owned demonstrating experience managing similar properties. Lastly, the borrower’s credit scores will needed. For the subject property, lenders will look closely at the current rent roll, operating statements showing income and expenses, copies of all leases, and other pertinent property information.
Commercial mortgage rates are determined by many different factors, including property type, location of the property, loan-to-value ratio, debt service coverage ratio, debt yield, borrower’s net worth, liquidity, credit rating and level of experience. Commercial mortgage lenders look at all of these factors to determine the riskiness of the loan before setting rates. Loans with the lowest risk profile will get the best commercial mortgage rates. As the potential risk increases, commercial mortgage rates usually increase.
Commercial mortgage loans are viewed differently by lenders than residential loans. Home loan lenders look strictly at the borrower’s income and credit in order to qualify. Commercial mortgage lenders look at the subject property’s rent roll, operating statements, and other factors to determine the cash flow or net income potential. Very strong (low risk) commercial mortgage loans might be priced lower than home loans, while weaker performing properties (higher risk) might be priced higher.
Most commercial mortgage loans today are fixed for 5, 7, or 10 years and come with a 25-30 year amortization schedule. Loans can be recourse (personal guarantee) or non-recourse (no personal guarantee). Commercial mortgage loans typically carry prepayment penalties, whereas residential home loans usually do not. Specific terms will be determined by your lender’s underwriting team after your application is reviewed.
Commercial mortgage lenders typically lend up to 75-80% on an apartment purchase (down payment of 20-25% necessary). On other types of commercial property, commercial mortgage lenders will typically lend up to 70-75% (down payment of 25-30% necessary). An exception is for owner occupied business real estate (such as a business owner buying his own property). Owner/users may qualify for up to 90% LTV financing.
Select Commercial is a leading commercial real estate loan provider. We have excellent commercial real estate loan products and options available for owners and purchasers of commercial real estate. While we lend across the entire continental United States, we are able to give our best commercial mortgage rates and loan programs to certain areas that we feel are strong markets. Pasadena 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. As an experienced commercial mortgage professional, with over 30 years of lending experience, we have many sources of capital to choose from when placing a commercial mortgage request with a lender. Having many lenders to choose from gives us advantages over any one individual source. Finding the lender that fits the needs of each client is what we do best. In the end, you get the best rate and terms available. If you are looking to obtain a 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.
Commercial Real Estate Recent Closings
What’s going on with commercial mortgage rates in Pasadena as we near the end of 2024?
The Federal Reserve’s Federal Open Markets Committee cut the federal funds rate by 50 basis points at its September 18, 2024, meeting. This was the first rate cut since March 2020, when the Fed began a long series of rate hikes to curb the high rate of inflation. The Fed’s decision shows that they believe that inflation is under control and moving into the 2% range that the Fed has set as its goal. The Federal Reserve took this decisive action to prevent further declines in the labor market. The Fed has further hinted at further cuts at its two remaining meetings in 2024, followed by additional cuts in 2025. This rate cut, along with possible future rate cuts, may create positive investor demand for commercial real estate, and may provide aid for commercial mortgage customers, as well as consumers in general. We must caution, however, that the Federal Reserve cuts affect short term interest rates directly and long-term rates only indirectly. The Prime Rate, which is a short-term rate, dropped from 8.50% to 8.00% with the Fed’s recent action. However, most commercial mortgage rates are based on the 5-, 7-, or 10-year treasury rates, and not the Prime Rate. We have seen these treasury rates actually rise since the Fed took its action. On September 18th, the 10-year treasury was roughly 3.70%. Three weeks later, this rate had jumped to 4.03%. Investors are still concerned about future inflation and are adopting a wait and see attitude.
Pasadena Office Commercial Real Estate Insights: 2023
Pasadena, a renowned cultural and commercial center in Los Angeles County, has seen a consistent demand in its office real estate sector in 2023. The city's rich history, combined with its modern amenities, makes it a prime location for businesses of all sizes.
Office Market Overview:
The office spaces in Pasadena have been adapting to the new normal, with a focus on hybrid work models and flexible spaces. The city has seen a steady demand for office spaces, especially in the downtown area, with tech startups and established firms alike seeking a presence in the city.
Future of Office Spaces:
With the rise of remote work, the demand for traditional office spaces might see a shift. However, Pasadena, with its strategic location and amenities, is expected to remain a sought-after destination for businesses looking for premium office spaces.
Pasadena Industrial Commercial Real Estate Insights: 2023
While Pasadena is not traditionally known for its industrial sector, the city has seen a steady demand for light industrial spaces, especially those that cater to the tech and creative sectors.
Industrial Market Overview:
With its proximity to major transportation hubs, Pasadena offers strategic advantages for businesses looking for storage and distribution facilities. The city has seen a rise in demand for modern, tech-enabled industrial spaces that cater to the needs of today's businesses.
Emerging Industrial Trends:
The integration of technology in industrial spaces, especially in areas like logistics and supply chain, is a notable trend in Pasadena. The city's industrial real estate market is expected to adapt to these evolving needs, offering state-of-the-art facilities to businesses.
Pasadena Retail Commercial Real Estate Insights: 2023
Pasadena, with its bustling downtown area and historic districts, offers a vibrant retail landscape. The city has a mix of high-end boutiques, traditional retail chains, and local artisan shops, catering to a diverse clientele.
Retail Market Overview:
The retail spaces in Pasadena have been adapting to changing consumer behaviors. With a focus on experiential retail and integrating technology to enhance the shopping experience, the city offers a unique blend of traditional and modern retail experiences.
Future of Retail Spaces:
With consumers increasingly looking for unique shopping experiences, Pasadena's retail sector is poised for growth. The city's focus on creating a pedestrian-friendly downtown area, combined with its rich cultural heritage, makes it a prime destination for shoppers.
Pasadena Hotel Commercial Real Estate Insights: 2023
Pasadena, known for its cultural events and historic landmarks, is a popular destination for tourists. The city's hotels, ranging from luxury resorts to boutique establishments, have been focusing on enhancing guest experiences.
Hotel Market Overview:
With a range of options catering to both business and leisure travelers, Pasadena's hotels have been integrating technology to offer personalized experiences to guests. The emphasis on safety and hygiene, especially in a post-pandemic world, remains a top priority for hoteliers in the city.
Adapting to New Travel Norms:
The hotels in Pasadena are adapting to the changing dynamics of the travel industry, with a focus on offering unique and memorable stays. The city's rich cultural heritage, combined with modern amenities, ensures that it remains a top destination for travelers from around the world.
What areas of Pasadena does Select Commercial provide financing?
Select Commercial provides commercial real estate loans throughout Pasadena including but not limited to the areas below.