San Bernardino Commercial Mortgages

At Select Commercial, we pride ourselves on 35+ years of experience helping clients in San Bernardino 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 multifamily units in San Bernardino, 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.

San Bernardino Commercial Mortgage Rates - updated 04/17/24

Minimum Loan Size $1,500,000 Get Free Quote
Loan Product Rate* LTV
Commercial Real Estate Loan 7.02% Up to 75%
Single Tenant Lease 6.82% Up to 75%
Business Real Estate Loan 6.92% Up to 90%
*Rates start as low as the rates stated here. Your rate, LTV, and amortization will be determined by underwriting.

San Bernardino Commercial Mortgage Benefits

CA commercial mortgage rates start as low as 5.88% (as of April 17th, 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

Distress is currently low in the commercial real estate market. After Signature Bank and Silicon Valley Bank failed, there was widespread concern that other regional and local banks would fail due to the high levels of commercial real estate loans held in their portfolios. With the exception of some market sectors, most commercial mortgage portfolios have performed well. Usually, during times of market uncertainty, commercial real estate distress levels increase dramatically. Current levels of distress are low by historical standards. At the end of 2022, the level of commercial real estate assets under distress was only 1.2% of the total national sales volume. This number is important to watch as many loans face maturity and higher rates upon refinance in 2023.

MSCI, Inc. estimates the volume of loans maturing in 2023 at $400 billion. The Mortgage Bankers Association pegs the amount at over $700 billion. Many analysts predict that loan defaults will increase for two reasons: many of these maturing loans will need to be refinanced at higher rates (and may suffer cash flow problems) and there are fewer active lenders in the market due to the recent bank failures. Loan underwriting has tightened up as the result of global financial conditions and the average loan to value has been dropping on new originations. Many properties have been able keep pace with the market due to escalating rents and strong appreciation. Other properties, mainly in the office and retail sectors, have suffered due to higher vacancy factors and fixed long-term rental rates. Operating income growth has been strong in the multifamily and industrial markets, which represent about 35% of the maturities in 2023. Revenue growth in the office market has been flat for the past five years and vacancy rates have risen. This sector, which accounts for about 26% of 2023 maturities, is expected to see a significant increase in distress and defaults as many properties will not underwrite well enough to pay off existing loan balances.

In February 2023, Trepp Inc., a data analytics company, reported an increase of commercial mortgage-backed securities loans (CMBS loans) going into special servicing. They estimate the percentage of these loans at 5.2%. Many of these properties, including office buildings and retail centers, may be subject to distressed sales. In addition, many borrowers with adjustable-rate loans also face distress unless they hedged their risk with interest rate caps. These adjustable-rate borrowers are seeing current rates generate debt payments which exceed the net operating income of the property and an inability to raise rental rates to keep pace with the increases in debt service. Many of these borrowers will need to either sell the property in a distress sale or invest more capital into the property and refinance for lower loan amounts.

National, regional, and local banks hold more than half of the total amount of commercial real estate loans which will mature in 2023. So far, we have not seen distress levels high enough that would threaten the financial stability of these institutions. Most lenders are likely to extend impending maturity deadlines as opposed to foreclosing as foreclosure would cause losses. Many will employ other methods, including extensions and workouts, for the foreseeable future.

Most analysts agree that the problems encountered by Silicon Valley Bank and Signature Bank are not applicable to other small and local banks with commercial real estate portfolios. These two large bank failures were caused by much more specific situations. Silicon Valley Bank was too concentrated in the venture capital and technology sectors and did not diversify their lending. Signature Bank was too narrowly concentrated in the cryptocurrency sector, a market sector under intense scrutiny of federal regulators.

The commercial real estate market is very varied. There are many different sectors, geographic areas, and borrower types. Banks that lend to this market are able to diversify their risk by lending to a wide variety of borrowers and limiting their exposure to any one particular area or property type. Lenders who employ diversified lending practices and have conservative underwriting guidelines are likely to experience little or no distress or financial losses during this current market cycle.

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.

San Bernardino Real Estate Loan CA Commercial Real Estate Loan

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. San Bernardino 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

San Bernardino office commercial real estate loan Office Loan

San Bernardino Office Commercial Real Estate Insights: Q3 2023

San Bernardino, one of the Inland Empire's anchor cities, is strategically located east of downtown Los Angeles and north of Riverside. The city's office spaces are evolving to meet the modern needs of businesses, reflecting the broader trends in the region.

Office Market Overview:

The demand for office spaces in San Bernardino is on the rise, with a total of 3,491,763 square feet of office spaces available in 2023. The city offers a mix of Class A, B, and C office spaces, catering to a diverse range of businesses. The proximity to major highways and the San Bernardino International Airport makes it an attractive destination for businesses.

Future of Office Spaces:

Given its strategic location and the broader trends in the commercial real estate market, San Bernardino's office sector is poised for growth. The city is well-equipped to adapt to the changing needs of businesses, ensuring a robust office real estate market in the coming years.

San Bernardino industrial commercial real estate loan Industrial Loan

San Bernardino Industrial Commercial Real Estate Insights: Q3 2023

San Bernardino is a prime location for industrial activities, given its proximity to major transportation routes. The city's industrial spaces are evolving to cater to a wide range of businesses, from manufacturing to logistics.

Industrial Market Overview:

With a total of 39,246,382 square feet of industrial space available in 2023, San Bernardino is at the forefront of the industrial real estate market. The city offers state-of-the-art facilities, with a significant portion being Class A industrial spaces. The rise of e-commerce and the need for efficient logistics solutions make San Bernardino a preferred destination for businesses.

Emerging Industrial Trends:

Businesses are increasingly looking for industrial spaces equipped with modern amenities. San Bernardino, with its strategic location and advanced facilities, is well-positioned to cater to these requirements.

San Bernardino retail commercial real estate loan Retail Loan

San Bernardino Retail Commercial Real Estate Insights: Q3 2023

San Bernardino offers a dynamic retail landscape, catering to both local residents and visitors. The city's retail spaces are adapting to changing consumer behaviors, ensuring a mix of local boutiques and major retail chains.

Retail Market Overview:

With a total of 4,200,050 square feet of retail spaces available in 2023, San Bernardino's retail sector is thriving. The city focuses on providing a unique shopping experience, blending traditional retail with modern shopping solutions.

Future of Retail Spaces:

San Bernardino's retail spaces are not just about shopping; they are about creating memorable experiences. The city is set to offer a unique retail environment in the coming years, adapting to the evolving needs of consumers.

San Bernardino motel commercial real estate loan Hotel/Motel Loan

San Bernardino Hotel Commercial Real Estate Insights: Q3 2023

San Bernardino, with its rich history and proximity to recreational activities like skiing, hiking, and camping, attracts a diverse range of travelers. The city's hotels are focusing on enhancing guest experiences, ensuring safety, and offering unique stays.

Hotel Market Overview:

Given its strategic location near the San Bernardino Mountains and National Forest, the city offers a range of accommodation options. Hotels in San Bernardino are integrating modern amenities, ensuring safety protocols, and focusing on personalized experiences for guests.

Adapting to New Travel Norms:

In the post-pandemic world, the emphasis on safety and hygiene is paramount. San Bernardino's hotels are adapting to these new norms, ensuring guests have a safe and memorable stay.

What areas of San Bernardino does Select Commercial provide financing?

Select Commercial provides commercial real estate loans throughout San Bernardino including but not limited to the areas below.

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.