Retail Shopping Center Loans
Retail Shopping Center Loan Interest Rates - Rates updated December 21st, 2024
| Loan Product | Rates (start as low as) | LTV | |
|---|---|---|---|
| 5 Year Fixed Rates | 6.57% | Up to 75% | Get Free Quote |
| 7 Year Fixed Rates | 6.63% | Up to 75% | Get Free Quote |
| 10 Year Fixed Rates | 6.70% | Up to 75% | Get Free Quote |
Select Commercial has many different retail mortgage loan programs available for the purchase or refinance of retail shopping centers, retail strip malls, and retail properties. We lend nationwide and our minimum loan size starts at $1,500,000. Our shopping center lending program includes the following:
Multi-tenanted retail shopping centers that are located in suburban and urban locations with a minimum population of 50,000 people. We will consider anchored retail shopping centers with a major anchor tenant, un-anchored shopping centers, retail strip centers, and other retail properties consisting of multiple rental tenants. We prefer deals with good quality long-term tenants and a stabilized cash flow. However, we will consider all properties that make sense and have a good “story”.
Owner occupied retail stores are a big portion of our business. Many self-employed retail borrowers own their own property and often have difficulty obtaining bank financing for their properties. We are very eager to work with self-employed borrowers who own their own properties or are looking to purchase a property to house their retail business. We lend on all types of retail properties including special use and single use properties such as gas stations, free standing grocery stores, restaurants, and skating rinks, just to name a few. We will also work with self-employed borrowers on a “stated-income” basis, if needed.
Another very active area under our shopping center loan program consists of lending on NNN (triple net leased) properties that are leased to credit tenants. Some examples of these tenants include, CVS, Walgreens, AutoZone, Family Dollar, Starbucks, etc. We are very aggressive with our rates and loan terms with these types of single tenant credit tenants.
Very often, a shopping center suffers from high vacancy due to tenants that have moved out or when the property needs a cash infusion for tenant improvements. We are pleased to offer a bridge loan program to allow borrowers to access capital to renovate and upgrade their tenant base. Our bridge loan program is very helpful to owners who are looking to reposition their properties for the future.
We are a nationwide commercial mortgage broker specializing in all types of commercial mortgage loans, apartment loans, multifamily loans, and credit tenant lease loans.
Our Retail Shopping Center Loan Benefits
Retail Shopping Center Loan rates start as low as 6.70% (as of December 21st, 2024)
• A commercial mortgage broker with over 30 years of lending experience
• No upfront application or processing fees
• Simplified application process
• Up to 75% LTV (90% with SBA financing for owner occupied properties)
• Terms and amortizations up to 25 years
• Loans for purchase and refinance, including cash-out
• 24 hour written pre-approvals with no cost and no obligation
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Retail Shopping Center Loan Outlook for 2024
The landscape of shopping centers has experienced considerable changes over recent years, driven by evolving consumer behaviors, technological advancements, and economic fluctuations. As we look forward to 2024, the outlook for retail shopping center loans is shaped by these dynamics, with a focus on adaptation and resilience within the retail sector.
The pandemic fundamentally altered how consumers interact with retail spaces. As we progress through 2024, shopping centers that have embraced hybrid models—combining physical stores with robust online platforms—are thriving. Lenders are keen to finance shopping centers that demonstrate this adaptability, ensuring that they meet the diverse needs of modern consumers.
The rise of e-commerce has undoubtedly posed challenges to brick-and-mortar stores, but it has also created opportunities for innovation in the retail sector. Shopping centers that integrate digital tools and offer unique, experiential shopping experiences are attracting more foot traffic and higher sales. This trend is encouraging for investors and lenders who are looking to support retail spaces that can adapt to changing market demands.
In 2024, retail shopping centers that focus on mixed-use developments are also seeing increased interest from lenders. These centers, which combine retail with residential, office, and entertainment spaces, provide a diversified income stream and create vibrant community hubs. This diversification makes them more attractive to lenders, as they pose lower risks compared to single-use retail properties.
Sustainability and energy efficiency are becoming critical factors in the financing of shopping centers. Centers that incorporate green building practices, such as solar panels, LED lighting, and energy-efficient HVAC systems, are not only reducing operational costs but are also meeting the growing consumer demand for environmentally responsible businesses. Lenders are increasingly favoring these eco-friendly developments, offering better loan terms and rates.
Overall, the outlook for retail shopping center loans in 2024 is positive, particularly for those properties that show resilience through adaptability, technological integration, and sustainability. Lenders are looking for shopping centers that are forward-thinking and capable of thriving in a rapidly changing retail environment. As the market continues to evolve, shopping centers that can meet these criteria will find ample opportunities for financing and growth.