This category includes the following types of real estate:
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 Industrial buildings
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Office buildings
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Retail malls
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Mixed-use properties
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The location, 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 less appealing to the lending community than apartment building mortgages because of the perception that the cash flows from these property types are more volatile.
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Industrial Properties
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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 on their lease, in order to secure the most competitive mortgage rates.
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Office Buildings
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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
more difficult to finance unless the tenant is known, financially sound and the lease is long-term.
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Retail Malls
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Strip malls, power centres, and regional malls are the most popular categories within the retail sector. Ideally, the anchor tenants are 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.
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Mixed-Use Properties
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This type of real estate is almost always more complicated to analyze and 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.
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Financing Terms Available:
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Loan Amounts
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the loan amount will usually be 65-80% of the appraised value, depending on the quality of the property. Strong grocery anchored retail
will qualify for up to 80% financing.
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Interest Rates
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we are able to negotiate the most competitive interest rates in the market, normally well below the mortgage rates advertised by Lenders.
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Terms
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1 to 20 years.
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Amortization
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up to 25 years. In exceptional circumstances, the amortization might be 30 years.
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Minimum Debt Service
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1.30 or greater.
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Non-Recourse or Limited Recourse
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over 50% of the commercial mortgages which we arrange are non-recourse (i.e. no personal or corporate guarantees).
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Broker Fee:
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Depending on the Lender and the type of financing arranged, we may be paid directly by the Lender, avoiding "out of pocket" costs to the developer/borrower.
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