Maryland Commercial Mortgage Loan Rates

Maryland Commercial Mortgage Loan Rates
March 25, 2021

Ranked among the top 15 in the US when it comes to gross state product, Maryland offers plenty of commercial real estate (CRE) investors opportunities. There are also many chances to procure multifamily and commercial mortgages because the CRE market in the state is thriving.

If you’re looking to start investing in commercial properties in this part of the country, you are probably looking for information on Maryland commercial mortgage loan rates. The table below summarizes interest rates you can expect from different commercial loan products and their corresponding loan-to-value (LTV) ratios.

Note: The rates shown above apply to commercial mortgages from traditional lenders. Those who don’t meet the stringent requirements of traditional banks have the option of working with alternative lenders that can provide hard money, bridge loans, and other financing solutions, where interest rates typically start at 7%.

There are excellent commercial mortgage options and products available for investors in commercial properties and multifamily buildings throughout Maryland. And if you work with the right lender, you can enjoy low-interest rates and favorable loan terms, whether you’re looking to refinance or purchase a commercial real estate asset.

Why Maryland?

The state of Maryland is beautiful to investors looking for commercial mortgage financing and profitable, cash-generating income properties. These statistics show why:

  • There are over 450,000 mortgages for commercial properties throughout Maryland. In terms of average value, these commercial mortgages are worth about 5.6 million—that’s 8% more than the national average.
  • The average value of CRE Properties in Maryland is about $672k, and the median sales price is close to $400k. The average price per sq. ft. of Maryland commercial properties is $154.
  • There are upwards of 482,000 commercial properties in the state (3.6 million in total acreage). The average lot size is 21,147 sq ft (about 10% lower than the national average).

Notably, the commercial multifamily market in major cities like Baltimore is growing because of significant employment gains in certain industries. Average apartment rates in the city grew by 2.8% in 2019. Absorption remains healthy, and occupancy rates are stable.

Additionally, there are many multibillion-dollar projects in the area, including Port Covington (worth $5.5 billion), Merriweather District (by Howard Hughes), and Tradepoint Atlantic redevelopment (covering nearly 3,100 acres in Sparrows Point).

Many commercial real estate investors consider Maryland a wonderful place to find commercial mortgage financing, especially for those looking to break into the market.

Commercial mortgage loan options in Maryland

Bridge loans:

For CRE Investors who do not qualify for traditional institutional financing because of short-term obstacles, bridge loans can be beneficial in providing quick funding solutions. These commercial mortgage loans can help them close deals quickly and get projects started until they can secure bank financing.

Investment property loans:

Many commercial mortgage lenders will consider financing income-producing properties. The key is to find cash flow-driven lenders if you want to get cash quickly for a project that generates a positive cash flow.

Single-use and special-use loans:

Some lenders focus on lending money to owner-occupied businesses, including Retail Stores, car washes, gas stations, restaurants, motels, etc. Such loans are often hard to get from traditional banks that do not understand the nature of these businesses.

Industrial property loans:

You may also be able to secure commercial mortgages on manufacturing facilities, distribution centers, warehouses, and other similar industrial properties. Lenders are particularly keen on financing projects in good locations, with great access to transportation and population centers.

Retail building loans:

There are also commercial mortgages available for shopping centers, individual retail stores, retail strip centers, and the like. LTV ratios in this niche range from 65% to 75%. Do note that many lenders have become conservative in this area because of the current climate. That said, they are still interested in doing deals on single tenant triple net retail locations at least two national credit-rated tenants such as Starbucks, Walgreens, Dollar General, and CVS.

Office building loans:

Commercial mortgage lenders finance both investor and owner-occupied office properties, from single-tenant to multi-tenant buildings. The typical LTV is 75% on investor properties. It’s possible to get 90% on some owner-occupied properties. Commercial mortgage loans in this category are often fixed-rate, written for five, seven, or 10 years, with an amortization period of 25 years.

Multifamily loans:

Some lenders specialize in financing commercial multifamily apartments, high-rise multifamily buildings, and housing complexes. The usual LTV is 80%. There are fixed-rate loans available for this niche, with terms between three and 30 years.

There are multiple capital resources for commercial mortgage loans, including regional and local banks in Maryland, National Banks, credit unions, hedge funds, and private lenders. Whether you are refinancing are purchasing, a commercial mortgage advisory firm can help you find the right solution.

Capital Investors Direct provides commercial mortgage solutions focused on finding the best financing options for every client and every deal. We can manage the entire loan process, start to finish. We will be with you throughout your investment journey—even after funding, should you need assistance.

Although our commercial real estate investment advisory firm serves clients nationwide, we are based in Rockville, Maryland, so we know the region very well. You can trust our team to put together optimal financing solutions for your projects, offering personalized services and customized loan programs for your specific goals.

From small to large loans, we always deliver the best outcomes and have earned the confidence and trust of both borrowers and lenders in Maryland and throughout the US.

Our commercial real estate investors can provide customized commercial mortgage loans that are available through traditional lenders and banks, including:

  • Hard Money
  • Bridge
  • Construction
  • Stated income
  • Jumbo
  • Permanent loan

You can expect fast closing, reasonable interest rates (as low as 7%), a tailored loan structure, and a simple and quick application process. Our investment-specific approach is tailored to your investment objectives.

We understand that every CRE project comes with challenges and its own unique set of conditions. That’s why we evaluate the circumstances before structuring a loan that truly suits the deal. By employing the latest finance technologies, our team can offer financing solutions that empower investors.

Talk to us today about your commercial real estate project in Maryland. If you are in another part of the US, don’t hesitate to get in touch—we probably have a consultant in your area, as we have strategically-located offices throughout the country.

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