Simi Valley Commercial Mortgages
At Select Commercial, we pride ourselves on 35+ years of experience helping clients in Simi Valley 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 a Simi Valley multifamily loan, 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. Discover the latest trends in Simi Valley commercial mortgage rates as we approach the close of 2024.
Simi Valley Commercial Mortgage Rates - updated 11/21/24
| Minimum Loan Size $1,500,000 | Get Free Quote | ||
|---|---|---|---|
| Loan Product | Rate* | LTV | |
| Multifamily | 5.51% | Up to 80% | |
| Commercial Real Estate Loan | 6.92% | Up to 75% | |
| Single Tenant Lease | 6.62% | Up to 75% | |
| Business Real Estate Loan | 6.72% | Up to 90% | |
Simi Valley Commercial Mortgage Benefits
CA commercial mortgage rates start as low as 5.51% (as of November 21st, 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
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.
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. Simi Valley 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
What’s going on with commercial mortgage rates in Simi Valley as we near the end of 2024?
The Federal Reserve’s Federal Open Markets Committee cut the federal funds rate by 50 basis points at its September 18, 2024, meeting. This was the first rate cut since March 2020, when the Fed began a long series of rate hikes to curb the high rate of inflation. The Fed’s decision shows that they believe that inflation is under control and moving into the 2% range that the Fed has set as its goal. The Federal Reserve took this decisive action to prevent further declines in the labor market. The Fed has further hinted at further cuts at its two remaining meetings in 2024, followed by additional cuts in 2025. This rate cut, along with possible future rate cuts, may create positive investor demand for commercial real estate, and may provide aid for commercial mortgage customers, as well as consumers in general. We must caution, however, that the Federal Reserve cuts affect short term interest rates directly and long-term rates only indirectly. The Prime Rate, which is a short-term rate, dropped from 8.50% to 8.00% with the Fed’s recent action. However, most commercial mortgage rates are based on the 5-, 7-, or 10-year treasury rates, and not the Prime Rate. We have seen these treasury rates actually rise since the Fed took its action. On September 18th, the 10-year treasury was roughly 3.70%. Three weeks later, this rate had jumped to 4.03%. Investors are still concerned about future inflation and are adopting a wait and see attitude.
Simi Valley Office Commercial Real Estate Insights: Q1 2023
Simi Valley, nestled within the scenic hills of Southern California, has been a growing hub for businesses, particularly in the tech, healthcare, and entertainment sectors. With its strategic location near major highways and a population that's steadily increasing, Simi Valley is becoming a sought-after location for office spaces. The city's commitment to fostering a business-friendly environment has been a significant factor in attracting both startups and established companies.
Office Market Overview:
Office spaces in Simi Valley have seen a surge in demand, especially in areas closer to transportation hubs. The city's modern infrastructure, combined with its proximity to Los Angeles, makes it an attractive destination for businesses looking for a balance between urban and suburban settings. The influx of tech companies has also led to a rise in the demand for flexible and collaborative workspaces.
Future of Office Spaces:
Simi Valley is expected to witness steady growth in its office real estate sector. With the city's ongoing development projects and its emphasis on sustainability, businesses are likely to be drawn to the blend of innovation and nature that Simi Valley offers.
Simi Valley Industrial Commercial Real Estate Insights: Q1 2023
The industrial sector in Simi Valley has been robust, driven by the city's strategic location and excellent connectivity. With easy access to major highways and ports, businesses find it convenient for logistics and distribution. The city has been proactive in ensuring that industrial zones are equipped with modern amenities to cater to diverse industries.
Industrial Market Overview:
Simi Valley's industrial spaces have been in high demand, especially for e-commerce, manufacturing, and logistics companies. The city's infrastructure, combined with its business-friendly policies, has made it a preferred location for industries looking for expansive and modern facilities.
Emerging Industrial Trends:
With the rise of e-commerce and the need for faster delivery systems, Simi Valley is poised to become a significant hub for warehousing and distribution. The city's focus on sustainable and green practices is also attracting industries that align with these values.
Simi Valley Retail Commercial Real Estate Insights: Q1 2023
Simi Valley, with its mix of suburban charm and urban amenities, offers a dynamic retail landscape. The city has a blend of local boutiques, high-end stores, and major retail chains, catering to its diverse population. The retail spaces in Simi Valley are designed to offer a unique shopping experience, with a focus on customer convenience and satisfaction.
Retail Market Overview:
The retail sector in Simi Valley has been thriving, with a focus on offering a mix of traditional and modern shopping experiences. The city's retail spaces are strategically located, ensuring easy accessibility for residents and visitors alike.
Future of Retail Spaces:
With the city's ongoing development projects and a focus on creating pedestrian-friendly zones, Simi Valley's retail spaces are set to evolve. The integration of technology and emphasis on experiential retailing will further enhance the shopping experience in the city.
Simi Valley Hotel Commercial Real Estate Insights: Q1 2023
Simi Valley, with its scenic beauty and proximity to major tourist attractions, has been a favorite among travelers. The city's hotels range from luxury resorts to budget-friendly accommodations, ensuring that every traveler finds a place that suits their needs. These hotels focus on offering a blend of comfort, convenience, and a taste of Simi Valley's unique culture.
Hotel Market Overview:
Hotels in Simi Valley have been focusing on enhancing the guest experience by integrating technology and offering personalized services. With the city's growing popularity as a tourist destination, there has been a steady demand for hotel spaces.
Adapting to New Travel Norms:
With changing travel trends, hotels in Simi Valley are prioritizing safety and hygiene. They are also focusing on offering unique experiences, ensuring that guests have a memorable stay while exploring the city and its surroundings.