Commercial Real Estate Financing

Explore your Options

When considering a purchase or refinance its important to understand your options. Evaluating your short and long term plans with the property should be given careful consideration.

We work primarily with banks, credit unions and other financial institutions to provide conventional and SBA financing on all commercial properties. They must be zoned for commercial use. Property types include office, retail, industrial, hospitality (hotels, restaurants, cafes, sport facilities), healthcare (medical centers, hospitals, nursing homes, assisted living facilities), mixed use (commercial and residential), self-storage and multifamily (5+ residential units) properties. We do not provide financing on residential properties.

If a property is leased out to third party tenants as an investment property it qualifies for conventional financing. Since commercial loans are rarely sold, each bank has a different perspective as to the long term outlook of their portfolio. As a result banks can vary widely by different criteria they look for and ultimately offer different rates, terms and leverage. This is where we can help. A business owner purchasing a commercial property to move into can qualify for conventional, SBA 504 or SBA 7(a). The primary criteria for qualifying for an SBA loan lies in the amount of space the business will occupy in the new property. To be eligible for an SBA loan, your business must occupy at least 51% of the square footage of the building.

Monarch Commercial Capital provides options, execution and makes your loan structure personal.

We explore options that make the most sense for you, not what a particular bank prefers to do. We have the options, network and relationships to make your transaction more than a transaction; we make it personal. Here are a few example scenarios based off a $1MM purchase price for a business that will be occupying the commercial property, accounting for at least 51% of the square footage.

SBA 504 scenario:

Your financing would look like this:

50% – $500k loan #1 with one of our lending partners
40% – $400k loan #2 with the SBA (we will arrange this for you)
10% – $100k down payment

This option tends to be the most time consuming of all three options because it requires multiple approvals but in most cases can offer the best terms. It has come complexities that we will make sure and guide you through.

SBA 7(a) scenario:

The SBA 7(a) loan can be one of the most flexible commercial real estate financing loans for businesses that occupy or will occupy commercial real estate properties. It is more flexible than the SBA 504 loan in terms of credit quality, ability to prepay the loan and down payment. For example, under limited scenarios this loan could provide financing with no down payment. However, these loans more commonly require a 15% down payment plus closing costs.

85% – $850k loan with one of our lending partners
15% – $150k down payment
3% – closing costs paid out of pocket

These loans require a bank approval and SBA required paperwork. If your loan amount exceeds 85% of the property’s appraised value then the SBA may require a lien on personally held real estate.

Conventional Scenario

The conventional loan is a more comment type of loan directly with a bank and no involvement with the SBA. These loans typically carry a minimum down payment of 25% (20% in limited cases). The underwrite and approval is all dependent upon a lender’s credit box, rates and terms.

75% – $750k loan with one of our lending partners
25% – $250k down payment

The conventional loan scenario applies to both owner occupied properties and investment properties.

Each scenario deserves equal consideration for your individual situation. That’s where we come in.

For a free consultation please complete an application. It shouldn’t take more than 5 minutes and we will NOT be pulling your credit.