This category includes the following types of real estate:

• industrial buildings
• office buildings
• retail malls
• mixed-use properties

The age, quality and historic performance of the property are the most important attributes in arranging a new or replacement mortgage. These types of real estate are generally slightly less appealing to the lending community than multi-residential mortgages, because of the perception that the cash flows from these property types are more volatile.

INDUSTRIAL PROPERTIES

The lending community prefers multi-tenant industrial properties over all other types of commercial real estate. Single tenant buildings must be (i) occupied by a creditworthy tenant, and (ii) have a reasonably long remaining term of their lease, in order to secure the most competitive mortgage rates.

OFFICE BUILDINGS

Despite the carnage during the early 1990’s in this sector, the lending community is lending on this property type with almost as much enthusiasm as industrial properties.

A higher quality building, as well as a solid list of tenants with staggered lease maturities (or long term leases) is important in order to obtain an aggressive financing offer. Single tenant buildings tend to be difficult to finance unless the tenant is known, financially sound and the lease is long-term.

RETAIL MALLS

Strip malls, destination power centres, and regional malls are the most popular categories within the retail sector. Enclosed older neighbourhood malls are generally not as popular given their lack of drawing power (relative to the regional malls) and their older design. It is important for the anchor tenants to be committed to leases which extend well beyond the proposed term of the mortgage. In addition, the anchor tenants must be creditworthy and show an adequate level of sales in order to justify the lease rates being paid.

MIXED-USE PROPERTIES

This type of real estate is almost always more complicated to analyze and consequently is slightly more difficult to arrange financing with Lenders. Usually a Lender will value each of the components independently in order to establish an overall lending value. The age of the property and relative success of each component will in large part determine the reaction from the lending community.

FINANCING TERMS WE CAN OFFER YOU:

• Aggressive Loan Amounts - the loan amount will usually be 65-75% of the appraised value, depending on the quality of the property.
• Competitive Interest Rates - we are able to negotiate the most competitive interest rates in the market, normally well below the mortgage rates advertised by Lenders.
• Flexible Terms - terms ranging from 1 to 20 years
• Long Amortization Periods - up to 25 years. In exceptional circumstances, the amortization might be 30 years.
• Non-recourse or Limited Recourse - over 50% of the commercial mortgages which we have arranged have been nonrecourse (i.e. no personal or corporate guarantees)

UNDERWRITNG CRITERIA (How the loan amount for your building is determined)

The basic lending parameters are outlined below:

BROKER FEE:

Depending on the Lender and the type of financing arranged, we may be paid directly by the Lender to avoid "out of pocket" costs to the developer/borrower. Approximately 50% of the commercial mortgages which we arrange are provided by Lenders who pay our brokerage fee.

If you would like us to analyze your property on a preliminary basis (free of charge) to establish the maximum mortgage amount which can be obtained, then click here.

If you would like to contact us or ask questions then click here.