Raleigh Commercial Mortgage Loans
Raleigh 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 Raleigh. 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. Raleigh 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 Raleigh 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.
Raleigh Commercial Mortgage Benefits
Raleigh 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!"
Raleigh Multifamily Loan Information
Job Additions Lure Residents and Fill Apartments; Optimistic Trends Boost Investment Activity
Employment and household growth exceed national average, bolster multifamily rental market. The region’s world-class universities provide the foundation for a highly educated workforce that is drawing companies to the region. Additionally, Xerox recently announced plans to build a Center of Excellence in Cary that will create 600 new well-paying jobs. Since 2015, more than 100,000 positions have been created throughout the metro and this year’s gain will hold it in the top 10 nationwide in terms of the percentage increase among major markets. The abundance of employment opportunities, a favorable quality of life and a more affordable cost of living are enticing more residents to the region. Over the past five years, household gains that average more than 16,800 annually have placed the metro among the fastest growing in the U.S. This trend will continue in 2020, generating demand for the many apartment rentals underway, which will keep vacancy on its downward trajectory. As a result, apartment rents will advance, eclipsing $1,200 per month for the first time. Investors looking to purchase multifamily property in the Raleigh market should definitely look into taking out an apartment loan to finance their acquisition.
Investors encouraged by favorable employment, demographic and operational trends. The metro’s vibrant economy, underpinned by an expanding tech sector, is luring buyers to apartment assets, which pushed investment activity up significantly in the second half of 2019. Many investors are coming from New York and California, drawn by lower price points and higher yields than are available closer to home. The average cap rate of Class B/C assets in Raleigh rests in the mid-5 percent range, more than 100 basis points above larger California markets, while the average price is roughly $130,000 per unit less. Investors seeking a steady cash flow may find opportunities in the northwestern portion of Wake County. A meager supply of new inventory over the past five years has tightened vacancy in the region and no competitive projects are due this year, which will likely hold vacancy tight and drive rent growth in the quarters ahead. Raleigh is a great market for investors to finance their next apartment purchase with a multifamily loan.
2020 Raleigh Multifamily Market Forecast
The Raleigh National Multifamily Index Rank is at 14, up 6 places. Strengthening price appreciation and steady employment growth push Raleigh up in the 2020 Index.
Employment in Raleigh is up 1.9%. After a gain of 2.4 percent last year, employers will add 18,000 jobs in 2020 and many will be higher-paying tech positions.
Construction in Raleigh is expected to exceed 5,900 apartment units. During 2020, deliveries remain on par with last year’s 5,500 apartments. The city of Raleigh will receive more than 3,100 of this year’s new inventory.
Vacancy in Raleigh is down 10 bps. The steady delivery pace and growing rental demand will trim the vacancy rate to 4.3 percent in 2020, the lowest year-end rate since 2000. Last year, vacancy decreased 80 basis points.
Rent in Raleigh is up 4.5%. Lower vacancy will push the average effective rent to $1,219 per month this year, down from a 5.6 percent leap in 2019.
Investment opportunities in Raleigh remain strong for those looking to finance their next purchase with an apartment loan Both local and out-of-state investors are targeting Class B/C properties in Raleigh. Assets along the corridor extending from downtown to North Carolina State University are sought. We highly recommend any investors looking to buy in the Raleigh 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.
Raleigh 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 Raleigh 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.