Commercial Real Estate Financing
$100,000 to $100,000,000 or more in financing is available to you
A commercial Real Estate loan is a mortgage loan secured by a lien on a commercial property, rather than a residential property. Commercial real estate refers to any income-producing real estate that is used only for business purposes. Examples can include hotels, retail centers, office buildings and apartment complexes etc.
For example, a restaurateur plans to open in a San Diego strip mall that is owned by a commercial real estate company. Instead of paying the excessive up-front costs associated with buying the entire building, the baker will simply lease the floor space from the company, paying monthly rent. This is how a commercial real estate company makes the lion’s share of its revenue – through the collection of rent and other payments from the tenants on the property.
Why Owning Commercial Real Estate makes sense:
Commercial allows companies to carry out daily operations and cater to customers conveniently. Companies generally lease commercial real estate in order to maintain cost-effectiveness and flexibility.
Real estate investment trusts are usually comprised of commercial real estate assets as opposed to residential real estate which can be a potentially more volatile market.
The potential profitability of commercial real estate may surprise you. Many of the largest companies you associate as simply big brands for their yearly sales revenue actually derive the majority of their income from their property assets, not from sales. Major companies with premier locations can count more on the Real Estate value in many cases than their core product.
Mission Valley Capital offers a full menu of commercial real estate loans to meet the financial needs and investment goals of our clients. We specialize in both investment and owner-occupied commercial properties, and we work with our clients to tailor financing solutions no matter how small or large the transaction. Mission Valley Capital offers recourse and non-recourse financing options for commercial real estate opportunities. We have the knowledge and depth of expertise to get you into the best programs being offered in the market today.
Commercial Real Estate Programs at a glance:
Standard Conventional Programs
At Mission Valley Capital, we offer conventional commercial real estate loans for stabilized and owner-occupied properties from $200,000 to $100 million and beyond in major markets throughout the country.
•Rates can be as low as 3.75% (rates are determined on a number of factors including current market and industry conditions)
•Loan-to-value ratios will go as high as 75%
•Terms can be anywhere from 10 years to 30 year amortizations depending on cash flows needs and client credit worthiness.
Examples of commercial properties we’ll consider are: multifamily, office, industrial, residential parks, storage, and retail properties for acquisition and refinance.
CMBS Loans for Commercial Real Estate
Commercial Mortgage Backed Securities, or CMBS Loans, are backed by commercial properties that are securitized into a pool, and then transferred into a trust. The trust issues bonds that are sold to investors. CMBS Loans are usually primarily issued by some of the Wall Street investment firms like Goldman Sachs, Bank of America, or Morgan Stanley.
•Loan Amounts: $2 million – $100+ million
•Up to 85% LTV
•Closing: 30-45 days
•Fixed Rate: 10 years
•Rate: 4.5% – 5.5%
•25/30 Year Amortization
•B Quality Properties = OK
•Loan Amounts: $2 million – $100+ million
SBA 7a and 504 Loans for Owner Occupied properties
The Small Business Administration (SBA) 7a and 504 loan programs are specifically designed for special-case property, which includes Owner-Occupied Properties, Flagged Hotels, and Non-Flagged Hotels. Mission Valley Capital has the most competitive rates and terms for both the SBA 7a and 504 loan programs, with rates as low as 4.5% and fixed term out to 25 years (Current market conditions and rates apply). If you are looking for the SBA financing we have far more options available than any single lender with limited products would.
Equity and Mezzanine Financing for Commercial Real Estate
Mission Valley Capital can also secure Equity or Mezzanine financing for real estate transactions. We can structure debt equity solutions to fit the financial standing and goals of our clients. We represent a wide range of capital resources and high-net worth investors to fund your real estate transactions, with loan amounts starting at $5 million, on up to over $100 million. Private investors are looking for strong credit worthiness but they are much more willing to examine the entire situation of the client and offer terms that a bank couldn’t touch. The key is to get financing that fits your situation perfectly. Too often when you are the mercy of one lender you must take what they offer even if it isn’t something that will achieve everything you need to achieve.
HUD and FHA Lending for Commercial Real Estate
FHA financing will provide long-term, fixed rate, fully-amortizing, non-recourse loans that can be used for the purchase, refinancing, construction, or rehabilitation of commercial properties. HUD and FHA financing can be used for multifamily rental properties, senior housing, healthcare facilities (including special care), and hospitals. These loans feature very low (permanent) fixed rates, full amortization, integrated construction, and credit enhancement for tax-exempt financing. HUD and FHA Loans are generally for amounts ranging from $2 million on up to $50 million.
There are times when it can be difficult to chase income documents and past tax returns. At Mission Valley Capital we offer a streamline income program for all types of properties. For investors who have multiple companies or complicated corporate structures, these types of programs become extremely beneficial. Loan amounts can range from $20,000 to $3,000,000. Please keep in mind the no tax return program are for investment properties only. All owner occupied properties need tax returns, but only for the business.
We offer a No-Obligation Pre-Qualification that takes less than 10 minutes to complete. Feel free to speak to one of the partners at Mission Valley Capital on obtaining the right commercial Real Estate loan for your business.