Washington Commercial Mortgage Loans from $1,000,000+
Washington Commercial Mortgage Rates - Rates updated April 4th, 2020
|Loan Product||Starting Rates||LTV|
|Single Tenant Lease Rates||3.55%||Up to 75%||Get Free Quote|
|Commercial Mortgage Rates||3.85%||Up to 75%||Get Free Quote|
|Multifamily Mortgage Rates||3.58%||Up to 80%||Get Free Quote|
|Business Real Estate Loans||3.65%||Up to 90%||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 Washington. 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. Washington 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 WA 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.
Washington Commercial Mortgage Benefits
Washington commercial mortgage rates start as low as 3.58% (as of April 4th, 2020)
• 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.
Washington Commercial Mortgage Loan Options
We arrange commercial mortgage financing in the state of Washington 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.
Washington Commercial Mortgage Information and Economic Overview
Washington State is a great place for investors to look for commercial mortgage financing to help procure commercial and multifamily properties. The average value of commercial real estate properties in the state of Washington is over $675,000. The median sales price of these properties is just under $322,000. In the last two years there have been about 96,000 property sales, with slightly over 55,000 sales greater than $250,000, 15,500 sold for more than $1,000,000, and 2,500 appraised north of $10,000,000. The average price per square foot of commercial real estate properties in Washington is a tad below $180 while he average lot size of these properties is slightly more than 35,000 square feet, 36% above the country’s average. In terms of volume, there are about 994,000 commercial properties in Washington, 193% below the United States average, with a total acreage of about 11,300,000 acres. In terms of commercial mortgage loans, there are 934,458 mortgages for properties throughout the state of Washington. The average value of these commercial mortgages is about $8,500,000, 48% above the United States average. This information demonstrates that Washington State is a terrific place to receive commercial mortgage financing.
Within the commercial real estate market, investors would benefit from looking into multifamily buildings in Washington. Nationwide, vacancy in the multifamily and apartment market has declined with a current rate of 7.0%. Due to both an increase in the demand for housing and inward migration, Washington has shown an even greater decline in vacancy rate. The statewide vacancy rate of 4.3% is predominantly driven by higher vacancy rates occurring in the more urbanized areas in Washington. As new supply continues to come into areas such as the Spokane, Clark County and Puget Sound markets, this vacancy rate underlines vital regional issues in the multifamily market. Even though vacancy rates differed throughout Washington, every county outside of the Puget Sound had vacancy rates below 3% for one-bedroom apartments. The lowest vacancy rate for these apartments was Walla Walla County at 0.0% while the highest rate was in Spokane County at 2.96%. Outside of the Puget Sound region, the highest rent levels for one-bedroom apartments are in the Chelan/Douglas county area with an average rent of $1,152. The lowest rents were recorded in Yakima County at $642 per month. The second most prevalent type of apartment and multifamily unit in the state are the units with two bedrooms and one bathroom. King County had the highest average 2BR/1 Bath unit rent at $1,746 while Yakima County recorded the lowest average rent of $807. Outside of the Puget Sound Region, the average vacancy rate for these units was 1.4%.
Seattle has by far the most active commercial real estate market in the state. The city’s reputation as the home of huge corporate players such as Amazon, Starbucks and Microsoft has positively impacted its economy. Furthermore, the inflow of Fortune 500 companies into the city has increased interest in Class-A office space Downtown, while the need for living space for new high-paid workers has increased demand for luxury housing. Across the whole spectrum, the commercial real estate investment outlook remains positive. The JPMorgan Chase Seattle team recently closed a $4.8M refinance next to Roosevelt Station. The property is anticipated to serve as an extension of the light-rail line. Seattle's industrial market has remained strong this year. In Kent Valley, the vacancy rate was 4.2% up 0.04% year-over-year. The overall average asking rent was $7.45 per square foot. This data demonstrates that Seattle is the perfect place to look into receiving a commercial mortgage loan.
Washington Commercial Mortgage Loans
Select Commercial provides commercial mortgage loans and multifamily financing throughout the state of Washington including but not limited to the areas below.
• Admiral • Greenwood • Pinehurst • Alki • Haller Lake • Pioneer Square • Arbor Heights • Hawthorne Hills • Queen Ann • Atlantic • Highland Park • Rainier Beach • Ballard • International District • Ravenna Bryant • Beacon Hill • Jackson Place • Roanoke Park • Belltown • Judkins Park • Roosevelt • Blue Ridge • Lake City • Seward Park • Boulevard Park • Laurelhurst • Sodo Distric • Brighton • Leschi • South Lake Union • Broadmoor • Licton Springs • South Park • Broadview • Loyal Heights • Squire Park • Capitol Hill • Madison Park • Sunset Hill • Cascade • Madison Valley • University District • Central District • Madrona • Uptown • Columbia City • Magnolia • Victory Heights • Crown Hill • Maple Leaf • View Ridge • Denny Triangle • Matthews Beach • Wallingford • Downtown • Meadowbrook • Wedgwood • Eastlake • Montlake • Seattle • Fauntleroy • Mount Baker • Westlake • First Hill • North Beach • Westwood • Fremont • Northgate • White Center • Garfield • Olympic Hills • Whittier Heights • Genesee District • Phinney Ridge • Windermere • Georgetown • Green Lake