Single Use Loans

Single Use Loan Interest Rates - Rates updated April 17th, 2024

Loan Product Rates (start as low as) LTV
5 Year Fixed Rates 7.03% Up to 75% Get Free Quote
7 Year Fixed Rates 7.03% Up to 75% Get Free Quote
10 Year Fixed Rates 7.02% Up to 75% Get Free Quote
Restaurant Hotel Motel Gas Station Loans Single Use Mortgage Loan

Select Commercial offers many commercial mortgage loan programs to the owners and purchasers of single use properties and/or special use commercial real estate. Single use properties are commercial properties that have a specific purpose geared to a specific industry, such as a gas station, restaurant, or motel. These loans are not generally preferred by traditional banks and are commonly rejected. This is a problem for small business owners and self-employed borrowers as these properties are often owned by small business owners. Also, many small business owners find that they have trouble obtaining traditional bank loans for these properties due to their company’s size, credit rating, or difficulty producing tax returns. In addition, if you are starting up a new business or expanding an existing business, it may be possible for us to use projection based income in order to qualify. Traditional banks can’t match the ability we have to “stretch the guidelines” to help your business grow. These loans have always been a large portion of our business. We actively lend on gas stations, restaurants, hotels and motels, bed and breakfasts, laundromats, service stations, bowling alleys, movie theaters, golf courses, marinas, retail stores, independent groceries, franchises, auto repair, manufacturing plants, liquor stores, health clubs, self-storage, mini-storage, parking garages, campgrounds, recreational facilities, RV parks, and many other single purpose properties. We even financed a sky diving wind tunnel for one of our clients! We have a special division that caters to these single use and specialty real estate loans. Some examples of these property types include:

Hotels and Motels
Special Use Loans includes loans to the hospitality industry. We are actively lending on hotels and motels, including unflagged motels. Unflagged motels are motels that do not operate under a franchise agreement such as Holiday Inn or Marriott. Also, many older motels have outside corridors and limited services. Many lenders will not finance types of properties.

Gas Stations
Gas stations are another single use property that are very often rejected by other lending institutions due to environmental concerns. We will actively lend on gas stations – both “branded” gas stations and “off-brand” gas stations.

Restaurants and Bars
Many restaurants and bars are housed in stand-alone, single-use properties. Some might be owner occupied and owner/user, others might be franchised locations of large national chains. We are glad to consider restaurant financing for all types of these situations.

Single Tenant Medical Buildings
We frequently finance single use medical properties for our clients in the medical, dental, and other health related fields. We have helped doctors, dentists, veterinarians, pharmacists, chiropractors and acupuncturists acquire or refinance their own buildings. In fact, we can even lend up to 100% on medical related buildings!

Our Single Use Loan Benefits

Single Use Loan rates start as low as 7.02% (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 90% financing on owner/user properties.  Up to 100% for medical professionals.
• 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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Special Use Loan Outlook for 2021 - Commercial Mortgage Rates

The COVID-19 pandemic seriously depressed the demand for apartment living space across the Unites States. One of the biggest factors that directly impacts apartment demand and household formation is a given market’s availability of jobs. The pandemic caused many people to be out of work and many other people to work remotely. Consequently, many prospective tenants such as new graduates lived with their parents or friends. With increased hiring in 2021 and many people returning to their in-office jobs, there has been a big rise in the demand for nationwide apartment housing. As more and more young graduates can return to work, this trend should continue throughout 2021. Commercial mortgage rates for apartment buildings have been at all-time lows throughout 2021 and experts don’t anticipate them to go up soon. The office and retail sectors did not fare so well in 2020 due to the pandemic. Many businesses shut down, brick and mortar retail shops had a hard time doing business and many companies implemented work from home policies. Many lenders were very conservative when considering commercial mortgage applications for these sectors. With vaccinations increasing and many states removing restrictions, business profitability has risen throughout 2021. In 2021, we are seeing companies hiring again after a dismal 2020. During 2021, it is estimated that more than 6.5 million workers will be added to company payrolls, many of them needing office space. Commercial mortgage lenders are not extremely bullish on the office sector and commercial mortgage rates, while attractive, are not as low as some other asset classes. Meanwhile, we are not seeing commercial mortgage lenders lend aggressively on retail properties in 2021. While the loans that lenders do fund may be at lower commercial mortgage rates, they aren’t as low as other asset classes and borrowers are having a difficult time obtaining high leverage loans in 2021.

Industrial properties are emerging well positioned from the pandemic and are expected to perform well in 2021 and beyond. The rapid growth of e-commerce, especially during the pandemic, is causing strong demand for industrial and warehouse space. 2021 has been a strong year for industrial absorption and sales prices of suitable industrial space has skyrocketed. Industrial properties currently are receiving very attractive commercial mortgage rates as this market is receiving a lot of attention. Experts believe that close to $578 billion of commercial mortgages and multifamily loans will be funded in 2021. This is over a 30% increase from 2020’s volume of $442 billion. As commercial mortgage rates remain at all-time lows, 2021 is a great time for prospective borrowers to look for commercial mortgage loans. Right now in 2021, commercial mortgage rates can be in the high 2% range for qualified properties and borrowers. Apartment loans above $6 million can qualify for rates in the mid- high 2% range while apartment loans below $6 million are generally being underwritten in 2021 in the low to mid 3% range. Many lenders are financing commercial mortgage loans for other asset types in the low to mid 3% range as well in 2021. Check out our low commercial real estate loan rates and use our commercial mortgage calculator to calculate monthly principal and interest.

Certain special use properties were hit very hard during the pandemic, while others did very well. Properties like restaurants and bowling alleys suffered major losses as these special use properties were forced to shut operations for many months. Other special use properties like campgrounds and other outdoor venues did very well as potential customers were looking for safe outdoor locations to visit and support. Special use loans were highly scrutinized during the pandemic and remain so in 2021. Lenders in 2021 are looking to make special use loans to businesses that have demonstrated an ability to survive through difficult times.