San Diego Commercial Mortgage Loans
$1,000,000 Minimum

San Diego Commercial Mortgage Rates - Rates updated May 17th, 2021

Loan Product Rates (start as low as) LTV
Multifamily Mortgage Rates (Over $6,000,000) 3.02% Up to 80% Get Free Quote
Multifamily Mortgage Rates (Under $6,000,000) 3.29% Up to 80% Get Free Quote
Single Tenant Lease Rates 3.52% Up to 75% Get Free Quote
Business Real Estate Loans 3.77% Up to 90% Get Free Quote
Commercial Mortgage Rates 3.77% Up to 75% Get Free Quote
San Diego Commercial Real Estate San Diego Commercial Mortgage

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 San Diego. 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. San Diego 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 San Diego 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.

San Diego Commercial Mortgage Benefits

San Diego commercial mortgage rates start as low as 3.02% (as of May 17th, 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!"


Recent Closings

San Diego Multifamily Loan Information

San Diego Economic Trends San Diego Economic Trends

Strong Apartment Performance Supports Continued Rent Growth; Investors Target Millennial Hubs

Multifamily Rental demand paces elevated construction. San Diego County represented a model of consistency over the past five years as apartment rental demand matched supply growth, preserving tight conditions. The metro’s diversified economy, highlighted by a blend of tech firms, research institutes and defense contractors, combined with a sizable millennial population contributed to the steady absorption of apartment units. Appreciating home prices also played a role as the gap between the metro average apartment rent and median home payment further boost rental demand. These drivers will remain in place during 2020, warranting the delivery of more than 4,000 multifamily rentals. Approximately 70 percent of these will be built in the city of San Diego, largely spread between downtown and Del Mar Heights. Supply will also be concentrated in Vista and Chula Vista. While construction activity remains elevated for a sixth consecutive year, rapid household formation has buoyed rental demand. These factors will deliver a balanced market, preventing a notable shift in vacancy from occurring. Investors looking to purchase multifamily property in the San Diego market should definitely look into taking out an apartment loan to finance their acquisition.

Small-scale apartment complexes in central locales garner buyer attention. Tight vacancy and strong rent growth in the Class C multifamily sector support an active sales market. Here, $1 million to $4 million trades involving smaller assets dictate overall deal flow. Areas that border Balboa Park will remain highly targeted by local high-net-worth individuals as these trendy neighborhoods feature large concentrations of young professionals. First-year returns on sales in this location range from the mid-3 to mid-4 percent, with well-located multifamily complexes trading for more than $300,000 per apartment unit. Home to another contingent of younger renters, centrally located beach communities represent an additional focus for investors. In Pacific Beach, buyers accept sub-3 percent yields for apartments along or near major thoroughfares. Those seeking high-4 to high-5 percent cap rates for similar- sized multifamily properties pursue inland listings near San Diego State University. San Diego is a great market for investors to finance their next apartment purchase with a multifamily loan.

2020 San Diego Multifamily Market Forecast

San Diego Completions vs. Absorption San Diego Completions vs. Absorption

The San Diego National Multifamily Index Rank is at 3, down 1 place. San Diego falls one slot yet holds in the Index’s top three as vacancy inches up and price growth wanes.

Employment in San Diego is up 1.1%. Organizations add 16,700 workers to payrolls in 2020, trailing the prior three-year average of 27,600 jobs.

Construction in San Diego is expected to exceed 4,200 units. Delivery volume remains heightened this year, with supply additions increasing the metro’s rental stock by 1.3 percent.

Vacancy in San Diego is up 10 bps. Metro vacancy rises nominally for a second straight year, reaching 3.8 percent in 2020. Still, net absorption exceeds 3,000 units for an eighth consecutive period.

Rent in San Diego is up 4.5%. Annual growth rate continues to outperform the national pace of increase, lifting San Diego’s average effective rent to $2,153 per month this year.

Investment opportunities in San Diego remain strong for those looking to finance their next purchase with an apartment loan. Buyers priced out of core San Diego shift their attention to the expanding 78 Corridor, where below-average asset values and yields in the 5 percent range remain obtainable. We highly recommend any investors looking to buy in the San Diego market to reach out to us regarding a multifamily loan.

Data provided by Marcus & Millichap.

Commercial Mortgage Rate Trends in 2020

San Diego Vacancy and Rents San Diego Vacancy and Rents

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

San Diego Sales Trends San Diego Sales Trends

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.

San Diego 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 San Diego 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.
Our company has multiple capital sources for these loans, including: national banks, regional and local banks, Fannie Mae, Freddie Mac, FHA, HUD, insurance companies, Wall Street conduit lenders (CMBS deals), credit unions and private lenders/hedge funds. Whether you are purchasing or refinancing, we have the right solutions available. We will entertain loan requests of all sizes, beginning at $1,000,000. Get started with a Free Commercial Mortgage Loan Quote.

San Diego Commercial Mortgage Loans

Select Commercial provides commercial mortgage loans and multifamily financing throughout San Diego and the state of California including, but not limited to, the areas below.


Little Italy • Ocean Beach • Marina • Carmel Valley • Serra Mesa • Pacific Beach • Mission Hills • Wooded Area • Hillcrest • Old Town • Mission Valley East • La Jolla Village • Balboa Park • La Jolla • Park West • North Park • Core-Columbia • Horton Plaza • Midtown • Mission Beach