San Bernardino Multifamily Loans in 2024

At Select Commercial, specialize in San Bernardino apartment building loan financing. We're dedicated to providing the most competitive rates and tailored solutions for multifamily investments in the area. However, if you're also exploring broader commercial real estate opportunities in other areas of California, our San Bernardino commercial mortgage page offers a wealth of information and resources. 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.

San Bernardino Multifamily Loan Rates - updated 06/24/24

Multifamily Loan > $6Million Get Free Quote
Loan Type Rate* LTV
Multifamily 5 Yr Fixed 5.47% Up to 80%
Multifamily 7 Yr Fixed 5.41% Up to 80%
Multifamily 10 Yr Fixed 5.33% Up to 80%
Multifamily Loan < $6Million Get Free Quote
Loan Type Rate* LTV
Multifamily 5 Yr Fixed 5.93% Up to 80%
Multifamily 7 Yr Fixed 5.82% Up to 80%
Multifamily 10 Yr Fixed 5.74% Up to 80%
*Rates start as low as the rates stated here. Your rate, LTV and amortization will be determined by underwriting.

San Bernardino Multifamily Loan Benefits

San Bernardino Apartment Loan rates start as low as 5.33% (as of June 24th, 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 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

Our Reviews

2024 San Bernardino Multifamily Loan Market: Regional Affordability Expands the Local Renter Pool; Investors Broaden Their Boundaries

2024 Apartment supply and demand in San Bernardino

Market Outlook: Strong Investor Activity and Diverse Buyer Pool

San Bernardino is attracting attention due to its affordability and diverse mix of properties. Mojave Desert cities such as Victorville are gaining investor interest, offering low rents and Class C assets under $150,000 per unit. Central San Bernardino remains attractive for its larger complexes and affordable Class B and C properties. Ontario and Riverside proper, with strong renter pools and minimal construction, are expected to drive investment due to their promising demand outlook, enhancing opportunities for San Bernardino apartment loans and San Bernardino multifamily loans.

2024 Rent trends in San Bernardino

2024 San Bernardino Multifamily Loan Market Forecast

  • EMPLOYMENT: The Inland Empire will see 6,000 additional jobs, driven by sectors that traditionally align with the renter demographic.
  • CONSTRUCTION: New unit deliveries will surpass 17-year highs, with volumes exceeding San Diego and approaching Orange County.
  • VACANCY: Although vacancy will increase to 6.2 percent, it remains manageable, thanks to the region's positive absorption rates.
  • RENT: Effective rent growth will continue, reaching $2,270 per month, staying $600 lower than other Southern California markets.
  • INVESTMENT: A tight vacancy rate, minimal construction, and above-average rent growth in Coachella Valley will attract significant investor attention, highlighting the potential for San Bernardino apartment loans and San Bernardino multifamily loans.

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.

Persistent Inflation and Its Effects on CRE

In an article featured in Multi-Housing News, Stephen Sobin highlighted that while inflation is still a challenge for the Federal Reserve, there are many positive signs for the commercial real estate industry. The headline Consumer Price Index rose 3.2 percent for the year ended Feb. 29, a figure 20 basis points lower than the Dec. 31, 2023, rate. read the full article.

Commercial Spotlight: Mid-Atlantic Region In this four-state powerhouse, smaller metros are thriving.

In a feature in Scotsman Guide, the Mid-Atlantic Region's real estate dynamics are explored, highlighting its resilience and growth amidst the pandemic.

Stephen Sobin of Select Commercial Funding LLC shared insights on the New York market's allure and the challenges buyers face. He noted the shift from primary urban areas to tertiary markets due to evolving preferences and financial conditions. For a deeper dive into Sobin's analysis, read the full article.

What the New Jobs Report Means for CRE

In an article titled "What the New Jobs Report Means for CRE" in Commercial Property Executive, Stephen Sobin shared his perspective on the latest jobs report and its implications for the Commercial Real Estate (CRE) sector. He highlighted the challenges posed by high interest rates and the prevailing uncertainty in the market. Sobin remarked, "Sellers aren’t selling, buyers aren’t buying... Everyone is waiting because no one knows what to expect." For a detailed analysis and more of Sobin's insights, read the full article.

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 2024?

Ongoing inflation and high interest rates significantly slowed the pace of the commercial real estate market in 2023. Investors and market experts were hoping for considerable decreases in commercial mortgage rates in 2024. The expectation was that the Fed would get inflation under control and then lower rates. However, as we move into the middle of 2024, inflation is still running higher than the Fed would like. The Fed has hinted that they do not anticipate lowering rates in 2024. In fact, commercial mortgage rates have been steadily rising. Some property types, however, are outperforming others. Apartment buildings in desirable neighborhoods are performing better than other asset classes, 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. One positive is that a large number of CMBS loans are coming due in 2024. Even in a high interest rate environment, owners of these properties will have to refinance or sell. This should lead to some activity in the commercial mortgage market in 2024.

 

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 Basics

Apartment Loan Types We Serve

If you are looking to purchase or refinance a San Bernardino apartment building, don't hesitate to contact us. We arrange financing in the city of San Bernardino 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 Loans - Lending Options

Apartment Loan Helpful Articles

How to Get the Best Rate on a Multifamily Loan
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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

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.


San Bernardino Apartment Loans

Select Commercial provides apartment loans throughout San Bernardino, California including, but not limited to, the areas below. We provide apartment loans in most major cities throughout the United States.

Del Rosa, Delmann Heights, Devore, Garden Park, Muscoy, North Loma Linda, North Norton, Northpark, Rana, Rialto Bench, University Heights, Valencia, Valley Gardens, Verdemont, Ward 1, Ward 2, Ward 3, Ward 4, Ward 5, Ward 6, Ward 7, Warm Springs, West Side.