Commercial Real Estate Financing

Multi-Family

In order for an apartment to be considered commercial property, it must have 5 or more units. There are numerous sub-types of apartments:

• Low-Rise Garden Apartments

• Mid-Rise Apartments

• High-Rise Apartments

• Student Housing

• Military Housing

• Townhouse Style

• Co-op

When we review properties to finance, close attention is paid to the location and general market for that area. any investors avoid properties that are located in economically depressed or seasonal areas. Also, the property should have acceptable aesthetic qualities to be competitive with market standards and have a minimum occupancy of at least 85%.

Mixed Use / Apartment

These properties will be a combination of any of the other property types. A real estate development of mixed use properties should be complementary to each other.

Automotive

Retail

Retail properties are properties that are occupied by one or more tenants and the property is utilized for retail purposes.

A free standing retail, strip center with an anchor tenant is a well known commercial retail business such as a national chain store or regional department store strategically placed in a shopping center so as to generate the most amount of customers for all of the stores located in the shopping center.

Salon

Office

Hospitality Properties

 Characterized as either Full Service or Limited Service.

Full Service can be further divided into Luxury, Upscale, Mid-scale, and Extended Stay hotels.

Limited Service Hotels can be further divided into Mid-scale, Economy, Budget and Extended Stay.

When considering hotel properties, the property should have a stable operational history. A property with a history of four or less years will be considered. as an exception. The minimum acceptable occupancy is usually 60%. Lenders also prefer franchise affiliated hotels with franchise agreements extending beyond the term of the proposed financing