Commercial loan rates - long term leased retail/office

[Vic Reddy]

Hello all

We are considering two Commercial retail and Medical office buildings to purchase in $4m to $6m range. What rates are you seeing in the market? Are there creative ways to find short term loans with lower rates?

Our Lenders are quoting 8-9% with 25% to 50% down even on properties with 7+ cap with stable long term leases

Thank you

[Chris Mason]

Quote from @Vic Reddy:

Hello all

We are considering two Commercial retail and Medical office buildings to purchase in $4m to $6m range. What rates are you seeing in the market? Are there creative ways to find short term loans with lower rates?

Our Lenders are quoting 8-9% with 25% to 50% down even on properties with 7+ cap with stable long term leases

Thank you

 Best case scenario for that, assuming an experienced investor with a net worth ballpark proportional to the sales price, rates should be in the 6s. Otherwise, low/mid 7s. Recourse with a PPP, among other assumptions. 

I ran it with an in place 7% cap rate.