Recently Funded - $400K+ Mixed Use Commercial Real Estate Financing in CT

An experienced CT commercial real estate investor acquires her 26th property

An experienced commercial real estate investor in Stamford, CT had identified an opportunity to purchase a mixed use commercial property – but her lender’s debt service requirements prevented the lender from approving the loan.

The investor had successfully worked with Speritas Capital on other deals and gave us a call. Speritas had also worked with the borrower’s regular bank on several deals. So we had a team in place with established relationships, focused on getting results for the client.

Loan challenges

Identifying the right lender for this property, given the nature of the property (mixed use), the vacancy rate (partially occupied) combined with the complexity of the borrower’s existing investments and corporate structure.

We identified one of our lenders – a nationwide private lender that had a specific loan program for properties of 1-4 units that included both commercial and living space (i.e. mixed use).

The program allowed for credit scores as low as 620 – a level of flexibility that isn’t available from a bank.

Speritas Capital’s Role

Our role in packaging the information was key to the success of this loan.  Speritas Capital also played the critical role of  advisor and financial interpreter between the lender and borrower.

Speritas Capital helped the borrower sort through some complicated issues related to name variations, lease transfers and loan structure and presented a compelling story to the lender. The buyer’s liquidity was in multiple bank accounts under multiple entities so Speritas Capital had to connect each liquidity pool to the borrower in order to show sufficient liquidity to qualify for the loan.

Throughout the process, Speritas Capital advocated for our client, easing the process and expediting the loan underwriting and closing.

Speritas Capital Partners helped an experienced  commercial real estate investor fund her 26th property in CT.

Why is finding the right mixed use commercial lender so challenging?

Many lenders don’t finance mixed use buildings because it is more complicated to analzye the cash flow of a mixed use building. Most lenders have specialists who can underwrite  residential or commercial real estate loans, but mixed use lending requires expertise in both property types.

ABOUT THE LOAN

  • Loan Type: Commercial Real Estate – Mixed Use – 1-4 Units
  • Lender: Nationwide alternative real estate lender that specializes in 1-4 unit properties that don’t fit the traditional lender profiles, and offers a wide variety of programs.
  • Loan Amount: $250K
  • Terms: 30 years, 7/1 ARM.

LOAN AMOUNT:
$250K

LOAN TYPE:
MIXED USE COMMERCIAL REAL ESTATE

LOAN TERM:
30 YEARS

RATE:
7/1 ADJUSTABLE

LENDER: ALTERNATIVE

CLOSED IN: 60 DAYS

CONCLUSION – POST FINANCE UPDATE

The borrower was able to acquire the target property with a quick closing loan at a competitive rate. The client is focused on rehabbing & renting the commercial first floor unit, and finding long term renters for the two upstairs residential units. 

This mixed use commercial real estate investment will soon be cash flow positive and makes an excellent addition to this savvy investor’s CT portfolio.

She’s ready for her next acquisition and Speritas Capital is here to help her find the right lender and close quickly.

The Client Says…

“The lender I’d been working on this with sat on it for 2 months with no progress. And even though the process moved slowly at times – for reasons beyond your control – I knew you were always working on the deal and you would always respond to my questions and follow-up.”

 


Are you a commercial real estate investor?

Mixed use commercial real estate investing is unique. We can help your find the right commercial real estate financing based on your experience, target property and personal credit. Learn more about our our commercial real estate financing capabilities.


The Speritas Capital team is always happy to hear your story, learn more about your financing needs and answer your questions. And we never take an up front fee. Contact Speritas Capital Partners today!

Jeff Bardos, CEO
Cathy Blood, Partner and Director of Marketing

The Speritas team brings our 30+ years of banking experience and our transparent, strategic approach to every client and every deal, both large and small.