90% ltv commercial refinance?

7 Replies

Are there any lenders out there that would refinance up to this ltv? Property in question is a mixed use investment property, not owner-occupied. Good credit score. Old property. High cap rate.

@Sam Burnoski

You may want to consider an SBA loan. Your qualification depends heavily on the use, but this could be an option for a high leverage loan.

Alternatively, consider more creative capital structures. Most of the time, CRE lenders look at loan-to-cost on value-add deals rather than loan-to-value. In this case, you can usually get a senior loan to 65% and mezzanine to 85% or more.

There are also structured options available, which gives you single high leverage loan, and the pieces are broken up (syndicated) on the lender side. This type of loan is very popular with the private equity debt funds. They can be expensive, but they are a lot more flexible than community, regional, and national banks.

A good mortgage broker should be able to fill your entire capital stack - senior, mezz, pref equity, and common equity. Your biggest concern will be limiting the cost of capital.

@John Wijtenburg just to clarify--SBA requires owner-occupancy to at least 51% of square footage of building. Also they won't do anything with a residential component unless it is incidental to the operation of the business, like an apartment for an on-site manager for a hotel. In some cases, you can get 90% leverage on CRE.

Originally posted by @Michele B. :

It would depend on the variables but, yes I have seen deals that went as high as 90 or 100% depending of course on the variables. 

 Hi Michele, I have a very similar situation, would you be willing to put me in touch with these lenders as well?