Stamford Commercial Mortgage Loans
Stamford Commercial Mortgage Rates - Rates updated June 15th, 2021
|Loan Product||Rates (start as low as)||LTV|
|Multifamily Mortgage Rates (Over $6,000,000)||2.59%||Up to 80%||Get Free Quote|
|Multifamily Mortgage Rates (Under $6,000,000)||3.19%||Up to 80%||Get Free Quote|
|Single Tenant Lease Rates||3.44%||Up to 75%||Get Free Quote|
|Business Real Estate Loans||3.69%||Up to 90%||Get Free Quote|
|Commercial Mortgage Rates||3.69%||Up to 75%||Get Free Quote|
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 Stamford. 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. Stamford 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 Stamford 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.
Stamford Commercial Mortgage Benefits
Stamford commercial mortgage rates start as low as 2.59% (as of June 15th, 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!"
Commercial Mortgage Rate Trends in 2020
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
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.
Stamford 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 Stamford 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.
Stamford Multifamily Loan Information
Rental Demand Revives in Stamford and New Haven; High Yields Drive Increased Transactions
Stamford to receive large share of arrivals to meet demand. Residents of New Haven and Fairfield counties seeking a new apartment with modern amenities had few available options until the past several years. In 2019, households will have more choices in Fairfield County, where about 70 percent of new deliveries are heading. Of those completions, many are in the city of Stamford, where the vacancy rate for Class A rentals started the year under 4 percent. Low availability and high demand will support above-market rent growth among luxury units in the area. New Haven’s smaller construction pipeline consists of a pair of deliveries, one in the city of New Haven and the other in the nearby town of Milford. The former development is located a few blocks from the Yale University campus; the latter is near major transit ways. The few arrivals in the area are enabling vacancy to fall across all apartment classes and facilitating rent growth above Fairfield County’s pace of appreciation.
Connecticut a high-return option for investors seeking to reposition small-scale, older assets. The two-county region enters 2019 with positive momentum following the most active investment year so far this decade. Buyers from other major metros, including Boston and New York, look to southern Connecticut for comparatively higher yields. Across the region the average cap rate lies in the mid-6 to high-6 percent zone, 200 basis points above initial returns for similar assets in neighboring New York. Lower entry costs are an added incentive for investors priced out of the larger markets. For buyers in the $1 million to $10 million tranche, there is an ample supply of stock with fewer than 50 units that could be repositioned for added return. Properties in the city of New Haven remain heavily targeted by these investors. In Fairfield County, Norwalk has garnered more interest of late, as first-year yields range above 7 percent.
2019 New Haven/Stamford Apartment Market Forecast
National Multifamily Index rank of 39, up 5 places. New Haven-Fairfield County climbs five notches as fewer deliveries reduce vacancy and push rents higher.
Employment in New Haven/Stamford is up 0.6%. Job growth stays positive for the second year in a row as employers hire 4,500 individuals in 2019.
Construction of apartments in New Haven/Stamford expected to number 1,440. Deliveries slow in both Fairfield County and New Haven in 2019, reducing the region’s completion total by about 360 units compared with last year.
Vacancy in New Haven/Stamford multifamily down 30 basis points. The vacancy rate declines to 4.6 percent in 2019, following a 20-basis-point drop last year.
New Haven apartment rents are up 2.5%. The average effective rent will increase to $1,812 per month this year, with higher growth anticipated in New Haven than in Fairfield County.
Investment in New Haven and Stamford apartments is good. Due to limited listings of newer properties in downtown Stamford, institutional-grade investors are showing more interest in large-scale Class B properties in New Haven and Hamden.
Data provided by Marcus & Millichap
Stamford Commercial Mortgage Loans
Belltown • Camp Avenue • City Center • Club Road • Cummings Park • Eden • High Ridge • Ledgebrook • North Stamford • Nottingham • Ridgeway • Rippowam • Shippan Point • South End • Springdale • The Cove • Turn of River • Upper Newfield • Waterside • Westover • West Side