Commercial Property Loans

Best uses

• Acquiring leased commercial assets
• Refinancing maturing commercial mortgages
• Repositioning under-leased properties
• Cash-out against stabilized assets

Typical borrower profile

• Investors diversifying beyond residential
• Owners of leased commercial buildings
• Sponsors with tenant and market knowledge

Potential qualification factors

Every lender sets its own criteria, and no factor guarantees or blocks approval on its own. Commonly reviewed items include:

• Net operating income and lease quality
• Tenant mix and remaining lease terms
• Loan-to-value and debt service coverage
• Sponsor experience, credit, and liquidity

Documentation to have ready

• Government-issued ID
• Entity documents (LLC or corporation)
• Purchase contract or payoff statement
• Property details and photos
• Insurance quote or declarations page
• Rent roll and lease abstracts
• Trailing operating statements
• Sponsor financial statement and real estate schedule

Benefits

• Access to asset classes with longer leases and stable income
• Multiple capital sources: banks, credit unions, CMBS, private lenders
• Structures for stabilized and transitional assets

Common challenges to plan for

• Vacancy and tenant rollover risk drive pricing
• Special-purpose properties have fewer lender options
• Third-party reports add time and cost

Frequently asked questions