Is there agency debt for retail and other commercial properties?

Question

My partners and I have a retail center that we purchased using a loan from a local lender in 2021. We are still locked at a cheap rate for a few more years, but we're already starting to plan for the refinance in light of the huge shift in rates (which hopefully will be a little cheaper by then!). I'm familiar with the cheap agency debt available to multi-family. Do Freddie Mac, Fannie Mae, HUD, etc offer long term debt on other types of properties? Ideally we'd like to do a cash-out refi with non-recourse debt for a long-term buy and hold.

Thanks!

Account Closed · Answer

Smart planning ahead! Rates are projected to dip by Q4. SBA is the main GSE that lends on retail properties; 51% owner occupancy is required. Conventional investor loan programs offer long term, non-recourse cash out refis.

Joel Owens · Answer

I can't give absolutes but retail is different than multifamily. There are not 30 year loan products fixed and if there was the rate would be astronomical and not make sense.

Retail is not Fannie and Freddie money. That falls under houses, multifamily, etc.

There is CMBS and Life Insurance companies but if this is small suburban they likely pass. These loans often carry heave defeasance penalties for exiting early as the investors into the loans are promised a set return whether you retire the loan early or not.

Ronald Rohde · Answer

CMBS?

Simmy Ahluwalia · Answer

There is. You'll need a minimum of 1.25x DSCR to qualify. There are minimum loan amount requirements as well.

Is there agency debt for retail and other commercial properties?

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