Commercial Construction Loans
When you are looking for lending in commercial construction loans to build a new property or refinance an existing property, you want the lender that is the best fit for your particular project, not just the best interest rate or the simplest loan application. We are leaders in nationwide commercial construction and development financing and mortgage loan brokerage, offering flexible programs for almost all real estate asset classes and line of credit options designed to get you from first contact with your loan officer to closing as quickly as possible. Our programs can be used not only for new construction, but we can also step into projects that have gone over budget or are distressed and complete the job. We have long standing relationships with an extensive network of construction lenders that allow us to tailor loan terms for commercial property owners specific projects, whether it’s ground up, occupied, in appraisal, or struggling to stay competitive.
Types of Commercial Construction Loans We Offer
Depending on the development and location, we can offer several options for financing construction lending, refinancing and loan term options. Below are several types of deals and loan options we can offer to give you cash flow with credit approval.
- Conventional (bank / credit union)
- Private debt
- HUD (multifamily)
Typical loan terms for construction & development are below;
- Up to 75% loan to value ratio on commercial loans (85% with mezz or pref)
- Up to 36 months loan term
- Can roll to a permanent commercial mortgage
- Non-recourse available in business loans
- Structured loan amount from $5 million +
- Fixed rate
Below are the property types that we consider for commercial & development loans when setting you up with banking support:
- Self Storage
- Mobile Home Parks
- Mixed Use
- Owner Occupied
Our mortgage lenders offer to fund and provide underwriting for commercial construction loans that are typically for small to middle market operators and developers of commercial real estate across the country, perfect for investing with either variable or fixed loans structured according to your borrowing needs. You might have questions about business credit, SBA loans, construction financing, variable rate options, acquisition and prepayment terms, and other issues. To discuss any commercial construction loan and see if it would be a fit, call directly to 866-647-1650 or fill out the contact form to the right.
Examples of Commercial Construction Loans
Example 1) A borrower came to us looking to build a $5 million apartment building in a small suburb outside of Chicago and in need of working capital or lines of credit. The borrower was a local developer with a strong investor in commercial property that was supplying much of the capital for the deal. We were able to structure a 75% LTC construction loan with their deposit and a 3 year mini perm that allowed the developer to qualify, construct the property and get it stabilized with enough time to either sell the project or recapitalize it. The commercial loan offered flexibility, high LTC, and low fees. This is a great example of how commercial mortgage loans aren’t all we offer as a mortgage broker, commercial mortgage loan provider and network of commercial lenders.
Example 2) A borrower came to us looking for a commercial lender for funding and wanting to construct a hotel in New Jersey with a $15 million property value. The borrower needed the loan to be non recourse due to the large investor group that had been assembled to complete the project and none of them wanted to sign. We were able to structure a 24 month private construction loan at 75% LTC that kept the non recourse aspect of the loan. The loan allowed for extension if needed, but gave them time to complete and stabilize the project for a mutually beneficial transaction. Not all mortgage companies offer that level of flexibility in the mortgage process during commercial real estate loans.
Example 3) A borrower came to us looking to construct a $31 million apartment building in Chicago and needed a relatively low interest rate on a construction business loan to maintain business savings for them to invest. The borrower was looking for high leverage, low rate, and non recourse property loans with a manageable loan payment. We were able to structure an 85% loan to value, non recourse, low rate construction loan that rolled to a 40 year fixed, 40 year amortization permanent loan upon completion and stabilization.