Economy in Review

Chula Vista, California has a diverse economy with a mix of industries including healthcare, education, retail, and manufacturing. The city has experienced steady job growth over the past few years, with the unemployment rate remaining below the national average. The median household income in Chula Vista is higher than the state average, making it an attractive location for businesses and residents alike.

According to the U.S. Census Bureau, Chula Vista has a population of over 270,000 people, making it the second-largest city in San Diego County. The city's population has grown steadily over the past decade, with a mix of both domestic and international migration.

Multifamily Market

The multifamily market in Chula Vista has remained strong in recent years, with high demand for rental properties. The city has seen an increase in new construction of apartment buildings and townhomes to meet this demand. According to data from the Bureau of Labor Statistics, the average rent for a two-bedroom apartment in Chula Vista is slightly higher than the state average.

Office Market

The office market in Chula Vista is relatively small compared to other cities in California. However, there has been an increase in new construction of office buildings in recent years. The city's proximity to San Diego and its growing economy make it an attractive location for businesses looking to expand or relocate.

Industrial Market

The industrial market in Chula Vista is diverse, with a mix of manufacturing, distribution, and logistics companies. The city's location near the U.S.-Mexico border makes it an ideal location for companies looking to import or export goods. According to data from the Bureau of Labor Statistics, the manufacturing sector is one of the largest employers in Chula Vista.

Retail Market

The retail market in Chula Vista is strong, with a mix of national chains and local businesses. The city has several shopping centers and malls, including the Otay Ranch Town Center and the Chula Vista Center. According to data from the Bureau of Labor Statistics, the retail sector is one of the largest employers in Chula Vista.

Self-Storage Market

The self-storage market in Chula Vista has seen an increase in new construction in recent years. The city has several self-storage facilities, with more planned for the future. According to data from the U.S. Census Bureau, the number of households in Chula Vista has increased over the past decade, which may contribute to the demand for self-storage units.

Hospitality Market

The hospitality market in Chula Vista is growing, with several new hotels and resorts planned for the future. The city's proximity to San Diego and its attractions make it an attractive location for tourists. According to data from the Bureau of Labor Statistics, the leisure and hospitality sector is one of the fastest-growing industries in Chula Vista.

Commercial Real Estate Loans by Purpose

There are many types of loans available for commercial properties in Chula Vista, and the best fit for you depends on your investment strategy. Here are some broad categories of financing available.

Permanent Financing

Permanent financing is a type of loan that remains in place for an extended period of time. It's commonly used to finance the acquisition of commercial properties or to refinance existing debt. Types of permanent financing include bank loans, loans from government-sponsored entities like Fannie Mae and Freddie Mac, HUD loans, credit union loans, loans from life insurance companies, commercial mortgage backed securities (CMBS) loans, and other types of loans depending on the specifics of the commercial property.

Refinancing a Commercial Real Estate Property in Chula Vista

I wouldn't quite call this a separate type of loan, but I have to mention refinancing in here. These are typically permanent loans (but not always) used to pay down an existing, partially amortizing or interest-only loan.

Often you may be able to time a refinance to happen after an interest rate drop — an ideal solution — but if your loan is maturing during a period of higher rates, you shouldn't stress too much about this. We'll work with you to find the best loan terms for your commercial property by reaching out to potentially thousands of lenders. Just complete the form below, and we'll get to it.

Construction Financing

Construction financing, also known as interim financing, is used to finance the cost of construction for commercial properties. It is usually a short-term loan that covers the cost of land development and building construction. Once construction is completed, the borrower can typically convert this into a permanent loan or pay it off with a new loan.

Bridge Loans

Bridge loans are a type of short-term loan that can be used to cover costs in the interim period between the end of one loan and the beginning of another. They are typically used in commercial real estate to finance the transition between construction financing and permanent financing. Bridge loans generally have higher costs than most other financing options and are often interest-only and non-recourse.

Commercial Real Estate Loans by Type

Depending on the purpose of your loan, you will have several financing options available to meet your investment goals. Read below to learn more about specific loan types.

Bank Loans

Bank loans are a common financing option for commercial real estate in Chula Vista. They can offer competitive interest rates and flexible terms, but the specifics can vary greatly from bank to bank. While they may not always be the best fit for larger, more complex projects, they can be an excellent option for smaller, simpler properties.

Life Company Loans

Life company loans are typically used to finance high-quality assets in major markets. They generally have lower loan-to-value ratios than most other loan types but offer competitive interest rates and long terms. However, they may not be suitable for riskier projects or properties in less established markets.

Agency Loans

Agency loans, offered by government-sponsored entities like Fannie Mae and Freddie Mac, are typically used for properties that are mostly multifamily. They offer attractive loan terms, low, fixed interest rates, and are non-recourse. However, there are restrictions on the amount of income that can come from other commercial uses.

HUD Loans

HUD multifamily loans are government-backed loans that are primarily used for the construction, substantial rehabilitation, purchase, and refinancing of multifamily properties. These loans offer long-term, non-recourse financing with competitive interest rates but have extensive requirements for qualification.

CMBS Loans

Commercial Mortgage Backed Securities (CMBS) loans are a type of mortgage-backed security backed by commercial real estate loans. Lenders focus more on the strength of the property than the borrower's credit, making them a good option for properties with strong cash flow.

SBA Loans

Small Business Administration (SBA) loans, such as the SBA 7(a) and SBA 504, offer attractive financing options for small businesses. However, the maximum amount for an SBA 7(a) loan is $5 million, while SBA 504 loans can go up to $20 million. They cannot be used for multifamily properties and are only available for properties that the business owner occupies.

Mezzanine Loans

Mezzanine financing is a hybrid form of financing that combines elements of debt financing and equity investment. It is typically used in commercial real estate to fill a funding gap between the primary loan and the total cost of a project.

Commercial Property Insurance in Chula Vista

This part isn't about loans, but it's just as important to your investment's success. Let's talk (quickly) about insurance.

Insurance premiums have skyrocketed in the past few years, as I'm sure you know. While multifamily gets a lot of the attention, rates for insuring anything from office buildings to shopping centers have jumped significantly.

Janover Insurance Group is dedicated to finding the best insurance solutions for your commercial real estate assets in Chula Vista. Click to get a free insurance quote for your property — no obligation.