RECENTLY FUNDED | $400K+ Mixed Use Commercial Real Estate Financing 1-4 Units | CT
LOAN CASE STUDY: Speritas Capital Partners helps an experienced Stamford, CT commercial real estate investor acquire her 26th property - a mixed use building - with a commercial real estate loan.
THE SITUATION: 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.
Financing Obstacles
Identifying the right lender for this property was especially difficult for several reasons:
the nature of the property (mixed use)
the vacancy rate (partially occupied)
the complexity of the borrower’s existing investments (25 properties)
an unorthodox corporate structure
Credit score challenges: The program allowed for credit scores as low as 620 – a level of flexibility that isn’t available from a bank.
Mixed use properties are especially difficult to finance. 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).
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 analyze 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.
Learn more about the different types of Commercial Real Estate loans.
Speritas Capital’s Role - Funding Solutions
Our role in packaging the information was key to the success of financing this mixed use real estate property. 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.
Questions about Commercial Real Estate loans? Call or text 203-247-4358, send an email, or schedule a call now with Speritas Capital CEO, Jeff Bardos.
About this Mixed Use Commercial Real Estate 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: $400K
Terms: 30 years, 7/1 ARM
Closed in: 60 days
“The lender I’d been working with on this project 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 on any issues.”
Conclusion – Post Finance Update
The borrower was able to acquire the target property with a relatively 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 large CT portfolio.
She’s ready for her next acquisition and Speritas Capital is here to help her find the right lender and close quickly.
Do you need a strategic partner to help you with your next commercial real estate property acquisition?
The Speritas Capital team is always happy to hear your story, learn more about your financing needs and answer your questions. We bring our 30+ years of banking experience and our transparent, strategic approach to every client and every deal, both large and small.
And we never take up front fees.
CONTACT INFO
Jeffrey Bardos
CEO Speritas Capital Partners
Call/text Jeff at 203-247-4358
Email Jeff with your ABL financing questions
Schedule a call with Jeff using our online scheduling tool.
More about Jeff
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