Riverside Apartment Building Loans
At Select Commercial, our primary expertise in Riverside is in multifamily financing. We're dedicated to providing the most competitive rates and tailored solutions for multifamily investments in the city. However, if you're also exploring broader commercial real estate opportunities in Riverside, our city-specific commercial mortgage page offers a wealth of information and resources. Beyond the city, for those seeking comprehensive rates on all loan products available across the 48 states, our comprehensive rate page offers competitive rates for loans starting at $1,500,000.
Riverside Multifamily Loan Rates - updated 09/26/23
| Multifamily Loan > $6Million | Get Free Quote | ||
|---|---|---|---|
| Loan Type | Rate* | LTV | |
| Multifamily 5 Yr Fixed | 5.90% | Up to 80% | |
| Multifamily 7 Yr Fixed | 5.78% | Up to 80% | |
| Multifamily 10 Yr Fixed | 5.64% | Up to 80% | |
| Multifamily Loan < $6Million | Get Free Quote | ||
| Loan Type | Rate* | LTV | |
| Multifamily 5 Yr Fixed | 6.16% | Up to 80% | |
| Multifamily 7 Yr Fixed | 6.09% | Up to 80% | |
| Multifamily 10 Yr Fixed | 5.97% | Up to 80% | |
Riverside Multifamily Loan Benefits
Riverside Apartment Loan rates start as low as 5.64% (as of September 26th, 2023)
• 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 multifamily financing
• Terms and amortizations up to 30 years
• Multifamily 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!"
Latest Expert Insights from Stephen A. Sobin
Stephen A. Sobin, the president of Select Commercial Funding LLC, is a renowned expert in the field of multifamily financing. His insights and perspectives are regularly sought by leading industry publications. Here are his latest contributions that highlight his deep understanding of the multifamily financing landscape and his commitment to providing clear, insightful analysis on key industry issues.
Decoding "Junk Fees" in Rental Housing
In another latest contribution to Multi-Housing News, Sobin provided expert commentary in an article titled "What's Next for Junk Fees? The Industry Weighs In". He clarified the difference between legitimate fees collected for various third-party services and so-called "junk fees". Sobin emphasized the importance of borrowers understanding their rights in negotiating all loan terms and the obligation of lenders to disclose all fees.
Understanding the Impact of Federal Reserve's Decisions
In a recent article titled "How the Fed's Pause on Interest Rates Impacts Multifamily" published by Multi-Housing News, Sobin shared his expert insights on the Federal Reserve's decision to pause interest rate hikes. He accurately predicted that the Fed would not raise rates in June, citing recent bank failures and lingering concerns about a potential recession.
Stay tuned for more expert insights from Stephen A. Sobin on the evolving multifamily financing landscape.
Frequently Asked Questions
Is multi-family real estate a good investment in 2023?
Inflation fears, high interest rates, and the prospect of recession have slowed the pace of the commercial real estate market considerably. Some property types are outperforming others. Apartment buildings in desirable neighborhoods are performing well, as owners have been able to raise rents and keep up with rising interest rates. Multifamily properties in smaller and less desirable areas, or areas where unemployment is rising, are not performing as well, as rent increases are harder to implement. In the office sector, only medical office buildings are generating lender interest. General office properties have underperformed the market as a result of the work from home policies established during the Covid-19 pandemic. Office demand is unlikely to return to pre-Covid levels making the office sector extremely hard to navigate right now. In the retail sector, essential service businesses, such as grocery stores and pharmacies, are performing well, while traditional brick and mortar retailers are still feeling the effects of Covid-19 and the competition from online retailers. Many malls are experiencing record high vacancy levels, and some are being repositioned for other purposes. In the industrial sector, we are seeing strong demand for warehouse and distribution space to accommodate the online retailers. Industrial space in urban markets and close to transportation are performing very well. We expect to see sales prices for underperforming properties to drop in 2023 as investors gravitate to better positioned properties.
There are many different types of lenders offering a myriad of different loan products to finance the acquisition or refinance of apartment properties nationwide. These lenders include agency lenders (Fannie Mae and Freddie Mac), local and national banks, insurance companies, credit unions and private lenders.
Most lenders write apartment loans for five, seven or ten years (fixed) with a 30 year amortization. It is also possible to obtain loans that are fixed for up to 30 years, although this is not the norm. Rates are typically based on a margin over the corresponding US Treasury rate.
Lenders offer non-recourse to strong borrowers and solid properties. The borrower will be expected to have strong credit, good net worth and liquidity, and experience owning and managing similar properties. The property will be expected to demonstrate solid long term positive cash flow, be in good to excellent condition, and be located in a strong market with low vacancy rates.
Apartment loans are typically screened and pre-approved in 2-3 days. Since lenders require appraisals, environmental and property condition reports, and title, closings will usually take 45-60 days from application.
Recent Banking Failures Likely To Impact California Multifamily Lending
The recent collapse of Silicon Valley Bank and Signature Bank has sent shockwaves through the business and real estate lending sectors. As a leading CA commercial mortgage broker with over 30+ years of experience, Select Commercial knows that the multifamily sector is not immune to these developments. Here's how these banking failures could impact multifamily lending:
Regional Banks Under Pressure
Regional banks, which provide significant liquidity to the apartment sector, are likely to face increased pressure. The collapse of SVB and Signature Bank has raised concerns about the stability of smaller banks. This could lead to a pullback from regional banks providing loans to the multifamily sector, making it more challenging for developers and investors to secure financing.
Development Challenges
Developers could face significant challenges, particularly in securing construction loans and value-add renovation dollars. The current environment is leading to a slowdown in construction lending and a return to traditional underwriting and banker skepticism. This could particularly impact the affordable housing sector, where developers need their financing lined up to secure tax credits.
Volatility in the CMBS Market
CMBS loans have experienced turbulence following the bank failures. This volatility could impact a new crop of lenders that have emerged over the past half-decade, many of which are capital markets-dependent. If the securitization market stabilizes, some of the CMBS and bridge lenders may re-enter the market to fill the liquidity gaps left by regional lenders.
Interest Rate Uncertainty
The bank failures could also contribute to uncertainty around commercial mortgage rates. If these failures lead to a slowdown in rate hikes by the Federal Reserve, this could potentially benefit the commercial real estate market in the long run. However, it's too early to predict the exact impact on apartment transaction volume.
In summary, the recent banking failures have the potential to significantly impact how banks handle multifamily loans. We will closely monitoring these developments to provide the best advice and service to my clients during these uncertain times.
Apartment Loan Types We Serve
If you are looking to purchase or refinance a Riverside apartment building, don't hesitate to contact us. We arrange financing in the city of Riverside for the following:
- Large urban high-rise multifamily buildings
- Suburban garden multifamilycomplexes
- Small multifamily buildings containing 5+ units
- Underlying cooperative multifamily building loans
- Portfolios of small multifamily properties and/or single-family rental properties
- Other multi-family and mixed-use properties
Apartment Loan Helpful Articles
How to Get the Best Rate on a Multifamily LoanHow to Buy an Apartment Building
Uncomplicated Underwriting
How to Invest in an Apartment Building
Are You Shopping for an Apartment Building Loan?
How To Get The Best Rates On An Apartment Refinance
Recent Multifamily Loan Closings
The luxury sector is at a turning point as large-scale deliveries are on the horizon. The Inland Empire started this year with an average effective rent that is at least $500 per month lower than all major Southern California markets. This affordability is set to encourage regional relocations to Riverside and San Bernardino counties in 2023, supporting apartment demand during a period of economic uncertainty. The rapid expansion of the industrial sector should further stimulate leasing at complexes, with jobs related to transportation and warehousing being added as companies occupy the 25 million square feet of such space that becomes available this year. These positive factors may prevent a significant increase in multifamily vacancy over the coming quarters. However, Class A demand is set to be challenged. After a two-year period of relatively limited new supply, a series of large-scale projects are scheduled to deliver units in 2023. Several multiphase developments in Ontario and Rancho Cucamonga are among the upcoming completions that feature more than 300 rentals. These properties, along with a group of new apartments in South Riverside County, could push the metro's Class A vacancy rate above 5 percent for the first time in a decade. Specific property types are attracting investors. The local Class C vacancy was one of the nation's tightest at the start of 2023, positioning lower-tier properties to provide owners with stable cash flow during a potential recessionary period. A group of active Southern California investors will compete for these listings. Some may reinvest proceeds from a recent sale in their home market into Inland Empire rentals, exchanging into a higher cap rate at a lower price point. Private buyers will target the metro's stock of sub-30-unit Class C complexes. Those seeking regionally discounted pricing have historically found the most opportunities in the metro's largest cities, and more recently in high desert locales off Interstate 15. Properties with a significant three-bedroom-unit mix should also be sought after, as assets with this layout stand to benefit from household consolidation trends. Employment is up 0.7%. Despite a slowing economy, 8,000 new jobs will be added in 2023. New construction will add 3,600 apartment units. New construction levels exceed average this year and the apartment stock will increase by 1.6%. Most of the new units are in the downtown area. Vacancy rates are up 30 basis points. Increasing demand almost keeps pace with new additions, with vacancy rates hitting 4.5% in 2023. Apartment rents are up 3.0%. Rent growth slows after an 8.5% increase in 2022. The average monthly rent will hit $2,760.San Bernardino-Riverside Multifamily Loan: Local Apartment Leasing Strengthens, Boosting Demand for Southern California's Most Affordable Rentals
2023 Riverside Multifamily Market Forecast
Whether you are purchasing or refinancing, we have the right solutions available for your multifamily mortgage loans. We will entertain apartment loan requests of all sizes, beginning at $1,500,000. Get started with a Free Commercial Mortgage Loan Quote.
Riverside Apartment Loans
Select Commercial provides apartment loans throughout Riverside, California including, but not limited to, the areas below. We provide apartment loans in most major cities throughout the United States.