Commercial Mortgage Rates

In general, commercial mortgage rates vary by asset class, geographic location, tenant mix, property type, leverage, debt service coverage, sponsorship and hundreds of other factors that are carefully considered in the underwriting for each loan. All of these rates are driven by indices (as indicated below). Commercial Real Estate Loans, Inc. specializes in underwriting and analyzing property financials. We then leverage the correct scenarios with the right lenders in order to drive down spreads and costs and maximize returns for our clients. 

Permanent Financing

Permanent Loans generally price over the relative treasury with banks, life companies, and CMBS lenders each offering different spreads depending on asset class, sponsorship, and MSA.

Bridge Financing

Our bridge financing options for loans under $10,000,000 are generally prime based products that float between 100 and 450 basis points over prime. However, LIBOR-based options are also available. 

Apartment Financing

Our apartment loans are fixed over US treasuries with spreads as low as 250 basis points over each relative treasury for Fannie and Freddie. In contrast, bank apartment loans offer pricing up to 350 over.

Important Indices*  

US Treasury Yields

  • 3-Month Treasury: 2.42%

  • 5-Year Treasury: 2.49%

  • 10-Year Treasury: 2.67%

Lending Rates

  • Fed Funds: 2.27%

  • Prime: 5.5%

*Treasury yields and federal funds rate updated on January 6, 2019, prime rate updated on Dec 20, 2018. Information provided by the U.S. Department of the Treasury, JP Morgan Chase & Co and the Federal Reserve Bank of St. Louis.

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