Salinas Commercial Mortgages
At Select Commercial, we pride ourselves on 35+ years of experience helping clients in Salinas 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 Salinas 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 Salinas commercial mortgage rates as we approach the close of 2024.
Salinas Commercial Mortgage Rates - updated 12/03/24
| Minimum Loan Size $1,500,000 | Get Free Quote | ||
|---|---|---|---|
| Loan Product | Rate* | LTV | |
| Multifamily | 5.39% | Up to 80% | |
| Commercial Real Estate Loan | 6.69% | Up to 75% | |
| Single Tenant Lease | 6.39% | Up to 75% | |
| Business Real Estate Loan | 6.59% | Up to 90% | |
Salinas Commercial Mortgage Benefits
CA commercial mortgage rates start as low as 5.39% (as of December 3rd, 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. Salinas 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 Salinas 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.
Salinas Office Commercial Real Estate Insights: Q1 2023
Salinas, a pivotal agricultural hub of California, is witnessing a transformation in its commercial real estate landscape. While traditionally known for its rich agricultural heritage, the city is gradually attracting businesses from various sectors, diversifying its economic base. The demand for office spaces in Salinas is on the rise, driven by both local businesses and companies looking to expand outside major metropolitan areas.
Office Market Overview:
The office market in Salinas is characterized by a mix of traditional office spaces and modern co-working solutions. As businesses adapt to the changing work environment, there's a noticeable trend towards flexible office solutions that can cater to diverse business needs. The proximity to major Californian cities and the relatively lower operational costs are factors bolstering the office real estate market in Salinas.
Future of Office Spaces:
Salinas is poised to see steady growth in its office real estate sector. The city's strategic location, combined with ongoing infrastructural developments, makes it an attractive destination for businesses. The future holds promise for a more integrated and sustainable office landscape in Salinas, catering to both traditional businesses and the modern tech-driven enterprises.
Salinas Industrial Commercial Real Estate Insights: Q1 2023
Salinas, with its strong agricultural backbone, has always been a significant player in the industrial real estate sector. The city boasts extensive warehousing and distribution facilities, primarily catering to the agricultural sector. However, recent trends indicate a diversification in the types of industries setting up shop in Salinas.
Industrial Market Overview:
The industrial spaces in Salinas are witnessing a surge in demand, not just from agri-businesses, but also from tech companies, logistics providers, and manufacturing units. The city's strategic location offers easy access to major markets, making it an ideal choice for businesses looking for expansive industrial spaces without the hefty price tags of major metros.
Future of Industrial Spaces:
With advancements in technology and the rise of e-commerce, Salinas is expected to see a growth in demand for modern warehousing solutions, equipped with the latest tech. The city's industrial real estate market is set for a period of innovation and growth, catering to the evolving needs of businesses.
Salinas Retail Commercial Real Estate Insights: Q1 2023
Salinas, a city with a rich cultural and agricultural history, offers a unique retail landscape. The city's retail spaces reflect a blend of traditional stores and modern shopping complexes, catering to a diverse population.
Retail Market Overview:
The retail market in Salinas is buoyed by the city's growing population and increasing tourist influx. From boutique stores offering local produce to modern shopping malls with global brands, Salinas provides a comprehensive retail experience. The city's retail spaces are strategically located, ensuring easy accessibility and ample footfall.
Future of Retail Spaces:
With the rise of e-commerce and changing consumer preferences, the retail landscape of Salinas is set for a transformation. The future will see a blend of experiential retail spaces and tech-driven shopping solutions, ensuring that Salinas remains at the forefront of the retail evolution.
Salinas Hotel Commercial Real Estate Insights: Q1 2023
Salinas, with its picturesque landscapes and rich cultural heritage, is a growing tourist destination. The city's hotel industry is witnessing a positive trend, driven by both leisure and business travelers.
Hotel Market Overview:
The hotels in Salinas range from luxury resorts to budget-friendly lodges. With the city becoming a preferred destination for events, conferences, and festivals, there's a consistent demand for quality hotel spaces. The city's strategic location, combined with its diverse offerings, makes it a favorite among travelers.
Future of Hotel Spaces:
The future of Salinas' hotel industry looks promising. With ongoing efforts to promote the city as a premier tourist destination and the rise of eco-tourism, there's an anticipated surge in demand for unique and sustainable lodging options. The hotel real estate market in Salinas is set to flourish, offering diverse options for travelers and ensuring steady returns for investors.
What areas of Salinas does Select Commercial provide financing?
Select Commercial provides commercial real estate loans throughout Salinas including but not limited to the areas below.