Fargo Lending presents a full spectrum of Commercial Real Estate Loans designed to meet the needs of borrowers just like you.
Permanent financing can be a tricky business. Small banks and credit unions vary substantially in options they offer; CMBS spreads move in and out as liquidity fluctuates. As a result, it is important to balance loan terms and guarantor (or carve-out guarantor) personal financials with properties financials, investors goals, property economics, and so-on.
The right terms may be a 5-year balloon, or a 20-year fully amortizing loan with a life company. It may be a non-recourse 10-year fixed CMBS deal, or a low leverage floating rate with a credit union. Whatever your goals; we work hard to build financial models and debt offering memorandums that cater to what we know our relationship-lenders want to see. When it comes time to finance your stabilized commercial property, Fargo Lending has the experienced commercial mortgage brokers and advisors on staff to get the job done, and get it done right
Commercial Mortgage Program Highlights:
LTVs up to 75% (and 85% For Mezz & Preferred equity).
Loans from as little as $1,000,000 and up.
Amortizations up to 30 years.
Terms up to 25 years.
Life company, Bank, CMBS, Private & Institutional Financing options.
In-house Financial Analysts and Underwriters.
Obsessive, hands-on customer service.
New Construction Loans:
When building commercial properties, you need a lender that understands costs, entitlements, and future-value. There is a balance that must to be reached between recourse, pre-leasing, pre-selling, cash vs. land equity, leverage and of course, pricing. Not all banks or institutions have the same guidelines. And, not all of them fully understand different asset classes, developer goals/strategies, or sub-markets.
It’s important to leverage your financial intermediary’s relationships of in order to negotiate the right terms with the right lender for your commercial development opportunity. When you have paid all your soft costs and impact fees, and are ready to break ground, sometimes it just boils down to certainty of execution.
Whatever your goals; Fargo Lending has the debt advisory team on staff to negotiate on your behalf and arrange the most competitive commercial construction financing the market has to offer.
Commercial Bridge Loans
Sometimes you have to unlock the potential in a property. However, many lenders can’t see past construction or permanent financing. When repositioning a property, short-term financing is usually the way to go, often in the form of a commercial bridge loan.
Bridge loans have several benefits. For starters, you can get a loan based on the total cost (cost perhaps being purchase price plus rehab, capex, tenant improvements, interest reserve, etc.). On top of that, bridge loans for commercial properties often have a built-in interest reserve if cash-flow isn’t strong enough. Another benefit of bridge financing is that after you add value or stabilize the asset (in the form of increased rents, improved occupancy, greater efficiencies in operating expenses, etc.), you can sell or refinance the asset and recapitalize, quite often without penalty.
Although bridge loans have a long-time reputation for being expensive, there are plenty of bridge financing instruments that price in the mid 5%s in today’s market. At the same time, non-recourse options do tend to cost a bit more. When it comes time to add value to your property, the team of expert commercial mortgage bankers at Commercial Real Estate Loans will add value to your capital stack.