Multifamily commercial real estate describes residential properties with five or more units. Most often, this term refers to an apartment building or apartment complex.
Industrial real estate refers to properties used to develop, manufacture, or produce goods and products and logistics real estate that supports the movement and storage of products and goods.
Retail real estate refers to properties that provide goods and/or services directly to the consumer, where such goods are available for either immediate purchase and removal from the premise by the purchaser; or for immediate consumption within the premise by the purchaser.
Commercial land can be any plot or subdivided area of land used for commercial purposes. Commercial means the land is used for businesses, manufacturing plants, warehouses, parking lots, and even profit-generating residences.
Spearhead Commercial Capital brokered a $35 million acquisition loan for a value-add opportunity in the Tampa Bay MSA. The Borrower is a long-time commercial real estate investor who owns and manages over 8,000 units across the United States. All of the acquisitions are long-term B and C class properties that receive light tenant improvements. For this purchase, the Borrower was looking for non-recourse financing that avoided agency debt due to current market restrictions too severe for their investment strategy. The Borrower also wanted the lowest rate in the market, 65% LTV, 60-day close, 1.00x DSCR. Spearhead Commercial Capital partnered with a national bank to provide financing through a SWAP fixed-term loan. The loan allowed for a 10 year term with four years of interest-only payments and a fixed rate of 2.95%. The Borrower was also not required to supply the bank with any P&I reserves. Rather they created a covenant to monitor liquidity instead. When the improvements to the building are completed and the rent roll stabilized, the Sponsor's recourse will decrease from a 50% limited guarantee to a non-recourse.
"It was an amazing experience for us to work for one of the largest private multifamily investors in the country on this transaction. The subject property will fit nicely within the portfolio that the borrower has built over the last 40 years. We are excited to have added value and creativity to a borrower whose previous lending relationships couldn't match the terms of the structure we negotiated. Spearhead takes great pride in being consultative and focusing on the investor's strategy to bring not only the best loan terms but the right loan terms to match that strategy. Mission accomplished here as we look forward to earning our keep on future projects as client's portfolio continues to grow." - William Foy, Partner
Commercial lending covers a multitude of property types. Not seeing the specific lending type you are looking for? Contact us and see how Spearhead Commercial Capital can get you the best lender for your needs.