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

San Jose Commercial Mortgage Rates - Rates updated March 4th, 2021

Loan Product Rates (start as low as) LTV
Multifamily Mortgage Rates (Over $6,000,000) 2.68% Up to 80% Get Free Quote
Multifamily Mortgage Rates (Under $6,000,000) 3.27% Up to 80% Get Free Quote
Single Tenant Lease Rates 3.25% Up to 75% Get Free Quote
Business Real Estate Loans 3.35% Up to 90% Get Free Quote
Commercial Mortgage Rates 3.60% Up to 75% Get Free Quote
San Jose Commercial Real Estate San Jose 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 Jose. 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 Jose 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 Jose 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 Jose Commercial Mortgage Benefits

San Jose commercial mortgage rates start as low as 2.68% (as of March 4th, 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 Jose Multifamily Loan Information

San Jose Economic Trends San Jose Economic Trends

Transit Networks Increasingly Key for Apartment Development and Investment Strategies

Mountain View captivating builders, driving multifamily development to record high. Apartment construction will be abundant this year as 5,500 multifamily units are slated for delivery — the highest total this millennium. Northern sections of Sunnyvale will get much-needed supply amid sub-3 percent vacancy, while downtown San Jose will also witness significant apartment development as builders focus on areas that align with public transit routes. Mountain View will post the strongest supply growth, adding more than 1,500 multifamily units, as developers seek to keep pace with the steady job creation of nearby tech firms. The influx of supply will outstrip the expected absorption of 4,600 apartments, putting short-term pressure on market-wide vacancy as it’s pushed to the low-4 percent range. Some areas such as East San Jose will retain limited apartment availability, keeping local rent growth among the strongest in the market. Over the past five years, the average effective rent in East San Jose has risen 29 percent, the most of any submarket within the metro. Investors looking to purchase multifamily property in the San Jose market should definitely look into taking out an apartment loan to finance their acquisition.

Favorable yields bringing investors to urban San Jose. Local buyers remain a key component of multifamily investment activity as they home in on many of the area’s Class C apartment assets, seeking properties with upside potential. Multifamily assets throughout Los Altos and Palo Alto in the five- to 10-unit range will remain highly targeted this year, fueled by the vigorous rental demand from nearby employment hubs, in addition to consistently robust rent growth. Downtown San Jose will also attract these investors as this part of market offers comparatively affordable entry costs and average returns in the mid-4 percent band, up to 50 basis points above the market average. While local interest should remain stable, out-of-state buyers will continue to arrive in San Jose, particularly institutional groups. In recent months, multifamily investors from the East Coast directed their focus to the area’s larger Class B apartment complexes along the Caltrain line in southern sections of the market, purchasing units for roughly $420,000 per door. San Jose is a great market for investors to finance their next apartment purchase with a multifamily loan.

2020 San Jose Multifamily Market Forecast

San Jose Completions vs. Absorption San Jose Completions vs. Absorption

The San Jose National Multifamily Index Rank is at 17, down 3 places. Higher vacancy and compressed rent growth result in San Jose placing lower in this year’s NMI.

Employment in San Jose is up 1.7%. Job creation will remain diverse this year, with organizations adding 20,000 new employees.

Construction in San Jose is expected to exceed 5,500 apartment units. Development will further accelerate following the completion of 2,700 units last year and 1,400 apartments in 2018.

Vacancy in San Jose is up 40 bps. Elevated development will place pressure on market vacancy, driving it up to 4.3 percent. The rate decreased each of the previous three years by a total of 80 basis points.

Rent in San Jose is 3.3%. Coming off a 6.4 percent boost last year, the market’s rent growth will remain stable in 2020 as the average effective rent rises to $3,080 per month.

Investment opportunities in San Jose remain strong for those looking to finance their next purchase with an apartment loan. Smaller Class C assets with value-add potential near major employers will remain sought after by investors, strengthening bidding climates and putting additional pressure on cap rates. We highly recommend any investors looking to buy in the San Jose market to reach out to us regarding a multifamily loan.

Data provided by Marcus & Millichap.

Commercial Mortgage Rate Trends in 2020

San Jose Vacancy and Rents San Jose 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 Jose Sales Trends San Jose 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 Jose 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 Jose 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 Jose Commercial Mortgage Loans

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


Willow Glen • Airport / North San Jose • East San Jose • Silver Creek Valley • West San Jose • Fairgrounds • Downtown • Burbank • Berryessa • Blossom Valley • North Valley • Almaden Valley • Cambrian • Alum Rock • Rose Garden • Evergreen • Edenvale • Santa Teresa