Retail, Office and Industrial loans with 30 Yr Amortization

New Lender Announcement

We are now working with a new Retail, Office and Industrial commercial lender with operations in Washington and California. Their best feature: 30 Yr Amortization on commercial properties.  Impact: The extra 5 yrs of amortization is like a 1.00% rate discount on a 25 Yr Amortization loan with the same loan amount. See Example.

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Table showing example of the calculation.

 

 

 

 

 

 

 

 

The extra 5 years can also offer better cash-flow and/or more loan dollars for new purchases. As an example, given an NOI of $200,000 and using the same 3 Yr fixed rate, this lender will lend an extra $159,300 (subject to a max LTV of 75%). See this example:

 

loanexample1

 

 

 

 

 

 

 

 

 

 

 

 

For Class A and B commercial properties and loan amounts over $2.5 million, lender will offer 75% LTV at 4.00% fixed for 3 Yrs or 5.261% fixed for 10 Yrs. Rates are as low 3.625% fixed for 3 yrs at 45% LTV. Loan amounts from $1.0 Million to $2.5 Million are .125% higher.

Lender also offers a fully amortization 15/15 Year loan starting at 4.949% for low leverage properties (55% LTV) or 5.199% for higher leveraged properties (75% LTV).

90 Day Rate Lock is available. The rate matrix is a bit complex with adds for no financial reporting and loans under $2.5 Million.  Call us to discuss.

For Property Types located in Washington and California.

Retail: Anchored, un-anchored, and shadow anchored centers and In-line retail (between anchors) with 5 or more tenants. Pads to regional centers. Other conditions apply.

Industrial: Warehouse and Light Manufacturing which is concrete tilt-up or wood framed (no metal buildings). Other conditions apply.

Office: General and Medical Class A & B elevator served buildings. No Single Tenants. Other conditions apply.

We are happy to be working with this lender and feel they offer very competitive rates. The 30 Yr amortization feature is not offered by many lenders. As usual, we do have lenders that may finance commercial properties that do not fit the requirements above. Please call to discuss alternative lenders.

Notice: This is not a commitment to lend. Loans subject to lender’s credit and collateral approval. Fees and other restrictions may apply. Rates, terms and conditions are subject to change without notice. Lender’s rates are often tied to a market index and/or a Swap Rate which change daily.