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Life Insurance Companies will offer the most aggressive Permanent Financing options. However, they will only invest in Class A commercial properties in top Metropolitan Statistical Areas (MAS). With a lower leverage and shorter amortizations, these Companies will offer the longest fixed rate periods with most loans being entirely amortizing.


Commercial Mortgage-Backed Securities (CMBS) loans start at just $2,000,000. These CMBS loans offer the highest leverage (up to 75%), with the longest amortizations (up to 30 years). However, they will have higher spread rates than Life Insurance Company loans because of liquidity issues in the secondary market.


  • Minimum Loan: $1MM.

  • Term: Up to 10 Years.

  • Leverage: Up to 75% LTV.

  • Amortization: 20 - 30 Years.

  • Recourse: Non-Recourse options available.

  • Prepayment: Defeasance, Step-Down, or Yield Maintenance.


  • Life Companies

  • Regional & National Banks

  • Institutions

  • Pensions Funds

  • Private Debt Funds


  • Lowest Rates

  • Longest Terms

  • Best Leverage

  • Longest Amortizations

  • Fixed Rates


  • Call Protection (Expensive Prepayment Penalties)

  • Limited Ability To Recapitalize (With Sale Or Refinance)


Commercial bridge loans, in general, are structured to finance capital expenditures, interest reserve and other reserves when necessary. Bridge financing for commercial property is commonly used to bring a property to stabilization for a sale and/or recapitalization and permanent financing.

Rates will be determined by strength of the sponsor and the loan purpose. Existing property with in-place cash flow will receive more aggressive financing whereas bridge loans for credit and legal issues or bridge loans that require an extremely expedited close (i.e. 2 weeks) will receive more expensive financing. Loans over 65% LTC or under $10MM will be full recourse. Larger loan amounts at lower leverage points will be non-recourse with standard carve-outs. Non-recourse financing is available at higher leverage or lower loan dollars at higher interest rates (generally double digit).


  • Minimum Loan: $1MM.

  • Term: 12-24 months.

  • Leverage: Upt to 75% LTC.

  • Amortization: Interest only.

  • Recourse: Non-Recourse options available.

  • Rates From 4.75%.

  • Prepayment: Usually none.

  • Fees: From 2% of the loan amount.


  • Loan amounts determined by total project cost.

  • Fast closing process.

  • Available when other lines of credit are not attainable.

  • An alternative to permanent financing.

  • Allows for recapitulation at stabilization.


  • Higher rates.

  • Very high rates if financing is for financial, legal or credit issues.

  • Loans are short term and generally need to be refinanced inside 24 months.


Construction loans are available anywhere from 24 month terms, to life company financed construction to permanent loans with earn-outs. We also offer layered financing and can place mezzanine financing or preferred equity on top of senior debt in order to reach leverage as high as 85% LTC.


  • Minimum Loan: $5MM.

  • Term: Flexible.

  • Leverage: Upt to 70% LTC.

  • Amortization: Interest only during construction.

  • Recourse: Non-Recourse options available for loans over $20MM.


  • Life Companies

  • Regional & National Banks

  • Institutions

  • Pensions Funds

  • Private Debt Funds


Mezzanine financing is structured to increase leverage on commercial properties by inserting a layer of debt between the first mortgage loan and the owner’s equity. Mezzanine loans are ideal for recapitalizations and refinancing when the existing loan balance owed is higher than what can be obtained through conventional lenders. By utilizing Mezzanine Loans, lender can go higher on the capital stack than traditional debt lenders normally would.

Developers can utilize Mezzanine loans to offset the more expensive investors’ equity when building commercial properties from the ground up. Preferred equity is available when the first lien holder will not allow for a secured second position. Mezzanine lender uses shares of the borrower/LLC as collateral instead of the underlying real estate itself.


  • Minimum Loan: $2MM.

  • Term: Coterminous with the first lien.

  • Leverage: Up to 90% LTV on stabilized property and 85% LTC on construction.

  • Amortization: Interest only.

  • Recourse: Non-Recourse options available.


  • Country Club Syndicates

  • Crowdfunding Platforms

  • Pensions Funds

  • Private Debt Funds


  • Cheaper than equity

  • Provides higher leverage


  • Debt can be expensive and drive up blended debt cost.


Class A assets -- and Class B assets located in major markets -- typically command more interest from lenders. Life companies, pensions, REITs, agency lenders and conduits aggressively pursue Class A assets. As a result, you can expect:

  • More financing options

  • Lower rates

  • Longer fixed rate terms and amortizations

  • Higher leverage (up to 80% with options for mezzanine debt or equity)

  • Asset is primary source of collateral with no personal guarantees (non-recourse)

  • Lower debt service coverage requirements (as low as 1.15:1)

  • Depending on the market, CAP rates in the 4%-6% range


Class B and C assets lose some interest from institutional investors and borrowers typically obtain financing from banks, agency lenders and specific purpose REITs. As a result, you can expect:

  • Fewer financing options

  • Slightly higher rates

  • Fixed rate with balloon terms or 5 year resets

  • 75% leverage with no option for secondary debt

  • Non-recourse for assets located in major markets

  • Recourse for assets located in secondary and tertiary markets

  • Depending on the market, CAP rates in the 6%-8% range


Class C and D assets tend to be financed by local banks with little to no interest from secondary market lenders. As a result, you can expect:

  • Limited financing options

  • Rates 100-200 bps higher than higher quality assets

  • Shorter fixed or floating rate terms

  • 65% (75% for strong sponsors in major markets) leverage with no option for secondary debt

  • Personal recourse

Depending on the market, CAP rates north of 8%


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