Commercial Real Estate Loans: Multifamily, Mixed-Use, Retail
Business Purpose Lending

Multifamily, mixed-use, office, retail, and industrial.

Commercial financing is underwritten on the asset's net operating income and the strength of the sponsor behind it. The math runs on NOI, debt service coverage, and debt yield rather than personal income, and the document set is heavier than residential because the lender is buying into an operating business.

How it works

Commercial Real Estate Loans, step by step.

  1. Start from NOI. Gross income less operating expenses, before debt service. Everything downstream keys off this number.
  2. Test coverage and yield. NOI divided by annual debt service gives DSCR. NOI divided by loan amount gives debt yield, the metric that protects the lender if values move.
  3. Document the operations. A current rent roll and trailing twelve months of operating statements are the backbone of the file.
  4. Underwrite the sponsor. Liquidity, net worth, and comparable experience carry real weight on commercial projects.
At a glance
Property typesMultifamily 5+, mixed-use, retail, office, industrial
Primary metricsNOI, DSCR, debt yield, LTV
RecourseFull, partial, or non-recourse with carve-outs
TermTypically shorter than the amortization, creating a balloon
VestingEntity required
TimelineLonger than residential; third-party reports drive it

Third-party reports, appraisal, environmental, sometimes property condition, set the timeline on commercial projects more than underwriting does. Order them early.

Who it fits

Built for these borrowers.

  • Investors acquiring five-plus unit multifamily
  • Owners of mixed-use, retail, office, or industrial property
  • Sponsors refinancing a maturing balloon or bridge loan
  • Operators repositioning an under-performing asset
What we will ask for

Documents to gather.

  • Current rent roll
  • Trailing twelve months operating statements
  • Purchase contract or payoff
  • Entity documents and organizational chart
  • Personal financial statement
  • Schedule of real estate owned
  • Prior year property tax and insurance

Have a project that fits?

Send us the scenario and we will tell you honestly whether it works, and which lender is the right home for it.

Other programs

Explore the rest of the shelf.