Atlas Crown’s goal is to give our clients access to funding for any type of real estate project. Most mortgage brokers and bankers either focus on residential or commercial projects. Commercial projects are funded by a completely different set of financial institutions, have different qualification requirements and significantly different terms. However, the core evaluation is the same; how much risk is the lender taking by providing money for the real estate. From this standpoint, Atlas Crown has the experience and relationships to help you fund any type of commercial real estate project.
A commercial mortgage applies to loans used to acquire, refinance or redevelop apartments (any multi-family building with more than four units), office buildings, shopping centers and industrial warehouses. Interest rates for commercial properties are generally higher than residential rates.
Commercial mortgages generally have a life of ten years or less. Stabilized commercial properties with established cash flows (sometimes called “permanent loans”) are more likely to be a 5 or 10 year term. Properties in transition, for example, newly opened properties or properties undergoing renovation or repositioning are more likely to be 1-3 years (sometimes called “bridge loans”).
Mortgages on multifamily properties that are provided by a government-sponsored enterprise or government agency may have terms of thirty years or more. Some commercial mortgages may allow extensions if certain conditions are met, which may include payment of an extension fee. Some commercial mortgages have an “anticipated repayment date,” which means that if the loan is not repaid by the anticipated repayment date, the loan is not in default.
Small Business Administration (SBA) Loan
Many businesses in the U.S. will qualify for a commercial loan product with significantly better terms than a traditional commercial loan. One benefit is the ability to put as little as 10% down for the property. In addition, the loan terms are 25 years which provides more flexibility over the life of the loan.
Click here to see if your company is eligible.
Property Assessed Clean Energy (PACE) Loan
Pace is a simple and effective way to finance energy efficiency, renewable energy, and water conservation upgrades to buildings. PACE can pay for new heating and cooling systems, lighting improvements, solar panels, water pumps, insulation, and more for almost any property – homes, commercial, industrial, non-profit, and agricultural. Property owners across the US are using PACE because it saves them money and makes their buildings more valuable. PACE pays for 100% of a project’s costs and is repaid for up to 20 years with an assessment added to the property’s tax bill. PACE financing stays with the building upon sale and is easy to share with tenants. State and local governments sponsor PACE financing to create jobs, promote economic development, and protect the environment.
Private/Hard Money Short Term Loans
See description under Residential Mortgages for more details