Pennsylvania Commercial Mortgage Loans from $1,000,000+
Pennsylvania 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 Pennsylvania. 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. Pennsylvania 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 PA 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.
Pennsylvania Commercial Mortgage Benefits
Pennsylvania 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.
Pennsylvania Commercial Mortgage Loan Options
We arrange commercial mortgage financing in the state of Pennsylvania 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.
Pennsylvania Commercial Mortgage Information and Economic Overview
Pennsylvania ranks sixth in the United States with gross state product of $803 billion. As an independent country, Pennsylvania’s economy would rank as the 19th-largest in the world based on GDP. On a per-capita basis, Pennsylvania's GSP of $50,666 ranks 22nd in the country. In terms of commercial mortgages, there are over 1.8 million mortgages for properties throughout the state of Pennsylvania. The average value of these commercial mortgages is over $7.3 million, 34% above the United States average. This data demonstrates that Pennsylvania is a terrific place to obtain a commercial mortgage loan.
Philadelphia is one of the best cities in Pennsylvania to obtain commercial mortgage financing. Philadelphia’s economic growth led by its growing technology market, continues to attract commercial real estate investors and developers. Multifamily and apartment buildings are coveted commercial real estate investments in Philadelphia. The Philadelphia metropolitan locale is set to deliver over 6,000 new rental apartments by the end of the year, which would be the biggest single year in over twenty years. Over the past few years we have witnessed a steady stream of multifamily and apartment deliveries unlike anything we have ever seen, leading many experts to predict that deliveries would fall off in 2019 due to short term rise in vacancy rates. While it is rational to assume that a brief halt would be necessary so that the new apartment units could be absorbed, that simply has not happened. Increases in various factors such as income, employment and population growth have probably contributed to this surprising absorption rate of multifamily units. Aside from Center City, the Greater Norristown submarket has been the strongest with regards to new construction in 2019 with almost 1,200 new apartment and units expected to deliver this year. Absorption has been positive over the past year even with the influx of new apartments and multifamily buildings.
Commercial real estate investors looking to invest in the Philadelphia market can also look towards office buildings as a solid choice. Propelled by robust job growth, Philadelphia recorded healthy fundamentals throughout the past year. Infusion of talent in the city has successfully led to a big increase in the number of tech and life sciences startups. With a need for office space, these companies have sought commercial real estate in Philadelphia. Yardi Matrix’s office report shows that Philadelphia posted the second most rapid office rent growth in the nation from December 2018 through February of this year. Additionally, the Yardi Matrix report shows that there are many units under development with almost 2.5 million square feet of office space under construction as of March. The completion of Philadelphia’s tallest skyscraper, Comcast Center, has led to further commercial real estate development in the urban areas, as well as redevelopment in the suburban markets.
Commercial real estate investors can also find much opportunity in the multifamily and apartment market of Pittsburgh. Since 2011 upwards of 10,000 millennials have moved into the Pittsburgh locale. Employment gains in the region are now surpassing the national rate at 1.6% year-over-year. This combination is promoting a rise in multifamily development and much potential in the apartment building market. Until recently, Pittsburgh was very undersupplied in terms of new apartments. The average age of an urban apartment building in Pittsburgh was about 70 years old until just a few years ago. More apartment units have been developed in the past three years than in the previous decade and a half. Nearly 1,000 new units were delivered three years ago, and over 2,370 apartment units are expected to have been delivered over the past two years. Thus, Pennsylvania is a great place for investors to look into commercial mortgage financing.