Where to find financing for single tenant NNN building in near future

Question

Looking to buy a retail building in a different market then mine. Is it best to go with a local bank of that market or does it not make a difference?

Scott E. · Answer

I've done 2 deals like this out here (although they were not retail. 1 was medical, 1 was office).

In both cases I had a local credit union handle the financing and it was very smooth. They knew the deal, the tenant, the sub-market. They did want me to open other accounts with them and make payments out of those accounts which I did. But this extra "headache" ended up being worth it for the overall experience.

Cody J Leivas · Answer

If you have an existing relationship with a bank in your market, they may be willing to lend out of their market. If not, local banks and credit unions will be your best bet.

Mortgage brokers could be good to use for your first deal in a new market. That way, they will introduce you to the banks in the market. You will have to use them on the first one, which will cost .50% - 1.00% of the loan amount. This is on top of the bank's commission of .25% - 1.00%. (on loan amount)

Brock Mogensen · Answer

Generally local banks are going to be more prone to lend on that sort of deal. But never hurts to reach out to several banks to see what is out there. Many banks are scared of retail right now so you will need to find the right one. Also worth looking into using a debt broker, as they generally have a better pulse on which banks are lending on retail.

Chris Seveney · Answer

@Andrew Lerner

Start asking now as commercial loans are getting very difficult and many lenders just stopped lending on those types of properties

Ronald Rohde · Answer

Where do you keep your money? Ask there first.

Where to find financing for single tenant NNN building in near future

Where to find financing for single tenant NNN building in near future

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