An analysis of recent trends in the Philadelphia commercial lending sector over the last quarter reveals a strategic focus on diverse property types. Notable transactions include 53 deals on Industrial properties, 197 on Land, 77 on Multi-family, 32 on Office, 1000 on Residential, and 28 on Retail. Additionally, 159 loans were successfully closed for other commercial property types during this period.
Leading this sector are well-established institutions such as Kiavi Funding, Citizens Bank NA, and Velocity Mortgage Capital, maintaining consistent prominence across states. The average loan amount in Philadelphia stands at $1.4 million, with select lenders demonstrating substantial financing capabilities of up to $70-100 million.
In the current market landscape, Regional banks, Credit Unions, and Community Banks offer competitive 65% loan-to-value (LTV), while Debt funds provide flexibility by extending up to 75-80% LTV. Origination fees range between 0.75-1.5 points, showcasing adaptability to varying borrower preferences.
The lowest available interest rate in Philadelphia presently stands at approximately 6.73% for a 5-year fixed term. This data underscores the city’s active and dynamic real estate lending environment, where financial institutions strategically address diverse commercial property financing needs, reflecting a commitment to providing accessible and competitive solutions for businesses in the Philadelphia real estate market
Atlanta’s lending institutions predominantly focus on financing residential and land deals, with office, retail, and multifamily properties also in their portfolio. The loan-to-value (LTV) ratios typically average around 70%, ensuring substantial financial support for property acquisition and development. Origination fees range between 1-2%, offering flexibility to suit individual borrower requirements.
Notably, the starting interest rate for a 5-year fixed product falls within the range of 7.05% to 7.17%, representing competitive lending options. Debt funds facilitate faster loan closures, typically within 2 to 4 weeks, while community and regional banks generally require a longer processing time, typically spanning 30 to 60 days.
Certain lending institutions in Atlanta may have membership restrictions tied to specific credit unions or banks. These various lending options reflect the commitment of these institutions to provide accessible and competitive financing solutions for businesses operating within Atlanta’s dynamic real estate market.
