Virginia Commercial Mortgage Loans
Virginia Commercial Mortgage Rates - Rates updated May 17th, 2021
|Loan Product||Rates (start as low as)||LTV|
|Multifamily Mortgage Rates (Over $6,000,000)||3.02%||Up to 80%||Get Free Quote|
|Multifamily Mortgage Rates (Under $6,000,000)||3.29%||Up to 80%||Get Free Quote|
|Single Tenant Lease Rates||3.52%||Up to 75%||Get Free Quote|
|Business Real Estate Loans||3.77%||Up to 90%||Get Free Quote|
|Commercial Mortgage Rates||3.77%||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 state of Virginia. 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. Virginia is one of the states 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 VA borrowers looking to purchase or refinance a commercial property. If you are looking to obtain an 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. Our staff is professional and knowledgeable, and we look forward to working with you on your next commercial mortgage transaction.
Virginia Commercial Mortgage Benefits
Virginia commercial mortgage rates start as low as 3.02% (as of 05/17/21)
• 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
Virginia Commercial Mortgage Loan Options
We arrange commercial mortgage financing in the state of Virginia for the following:
- Multifamily 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.
Virginia Commercial Mortgage Information and Economic Overview
Investors looking for a potential big return on their money would benefit by looking into procuring commercial mortgage financing in Virginia. The average value of commercial real estate properties in the state of Virginia is about $785,000 with a median sale prices of above $271,000. Over the last two years there have been about 53,000 commercial sales; slightly more than 28,000 of them have sold for greater than $250,000, about 6,300 sales valued at over $1,000,000, and 1,000 sales were appraised at over $10,000,000. The average price per square foot of commercial real estate properties in the state is $13 while the average lot size of Virginia is 38,930 square feet (45% above the United States average). There are about 901,000 commercial real estate properties in Virginia, 193% below the country’s average, with a total acreage of about 7.5 million acres. In terms of commercial mortgage financing, there are about 443,000 mortgages for commercial real estate properties throughout the state of Virginia. The average value of these commercial mortgages is about $6 million, 14% above the United States average.
The Richmond multifamily market seems very strong in 2019 and looks like a great place for investors to look into receiving an apartment loan. Although employment gains in Richmond–Tidewater started to decline in the middle of last year, the multifamily market was not really negatively impacted. Rents outperformed the national average, increasing 3.4 percent year-over-year as of March and occupancy in stabilized properties actually inched up 10 basis points, to 95 percent, over 12 months. While the market is still growing productively, with 4,315 new multifamily units underway as of March and 2,520, supply is bound to partially diminish rent growth. The average Richmond rent is estimated to advance 2.3 percent this year. Similar to the recent increase of multifamily complexes being built in Richmond, Chesterfield is having a boom of its own. A bunch of new multifamily developments are under construction and in planning. Many of these new complexes are gathered on the western end of the county and are part of or next to larger mixed-use buildings. The Richmond Times-Dispatch has reported that a two-level penthouse at The Jane at Moore’s Lake apartments in Chesterfield County has been leased for more than $3,000 a month. This apartment complex is located in Chester which is just south of Richmond. Those looking to invest in this lucrative market should most certainly look into procuring an apartment loan to help make a purchase.
In Northern Virginia, there are an influx of investors looking for commercial mortgage loans in order to break into the market. Property listings that had been sitting on the market with little interest are suddenly being fought over by multiple buyers. Much of this buzz has been caused by west coast tech companies such as Amazon and Apple, who both announced that they are in the process of setting up east coast headquarters in Virginia. These developments will significantly increase the number of jobs, as 50,000 new high paying jobs are estimated to be added over in the next few years. It has already been announced that Amazon HQ2 will be coming to Crystal City. With this new increase in demand for both housing and commercial space, prices are anticipated to rise steeply this year. The day that Amazon announced HQ2 two luxurious condo listings immediately increased their list price by 30 thousand dollars. In fact, with this anticipation of much higher demand in the area many experts think that we might see record breaking price increases in 2019 in Virginia commercial real estate. Thus, smart investors may find Northern Virginia a terrific place to look into commercial mortgage financing and apartment loans.