California 1928 Brick building Lenders Needed

10 Replies

I have been told(by a loan  broker) that our building won't pass a seismic, even though it has the Los Angeles required retrofit improvements, because it is a five story brick building, and generally they don't pass a seismic inspection, usually(at best) just falling short of the requirements.

Is this wrong? Does anybody have competitive lenders for an older brick building in So Cal?

Any feedback on the topic?

Originally posted by @Isaac S. :

I have been told(by a loan  broker) that our building won't pass a seismic, even though it has the Los Angeles required retrofit improvements, because it is a five story brick building, and generally they don't pass a seismic inspection, usually(at best) just falling short of the requirements.

Is this wrong? Does anybody have competitive lenders for an older brick building in So Cal?

Any feedback on the topic?

 How many units is this?

Originally posted by @Shaun Weekes :
Originally posted by @Isaac S.:

I have been told(by a loan  broker) that our building won't pass a seismic, even though it has the Los Angeles required retrofit improvements, because it is a five story brick building, and generally they don't pass a seismic inspection, usually(at best) just falling short of the requirements.

Is this wrong? Does anybody have competitive lenders for an older brick building in So Cal?

Any feedback on the topic?

 How many units is this?

 37 units, please feel free to DM me to get more details

37 units, 5 story, no basement, flat roof, has the 1980's required retrofits that connect the floor/ceiling joists to the metal plates on the outside along with the other reinforcement beams on the inside of the walls and the parapets reinforced with large angle irons on the roof, has several cripple walls in the roof space, and a few windows at the front lobby bricked up.

@Isaac S. ...I'm going to give my $0.02, but this is going to be out of @Chris Mason 's league, as he is strictly residential, not multifamily residential/commercial loans. That's no knock to Chris as his reputation precedes him and he's probably the most knowledgeable residential loan officer in CA on here (and maybe even biggerpockets period). Who's the lender who's not going to accept the unpassed seismic ? Feel free to pm please. Thank you.

Originally posted by @Jared Rine :

@Isaac S....I'm going to give my $0.02, but this is going to be out of @Chris Mason 's league, as he is strictly residential, not multifamily residential/commercial loans.  That's no knock to Chris as his reputation precedes him and he's probably the most knowledgeable residential loan officer in CA on here (and maybe even biggerpockets period).  Who's the lender who's not going to accept the unpassed seismic ?  Feel free to pm please.  Thank you.

I have several Lenders that do not require a seismic report at all.  They are 40-90bps more, and that's real money I can be saving/making.

WTF, is a seismic test? Why do some lenders not require it? What are the parameters or conditions of a successful seismic for my type of building? What happens if I don't pass? Can problems be remedied via more improvements/retrofits that are relatively cost effective? What are those remedies? How much do they cost? Will the lender approve the loan conditionally based on the work?

And I have more questions, I would ask a lender/broker with the proper experience.

I am trying to get absolute premium rates and the two very experienced commercial lender/brokers I have engaged(with the best rates and deals), say two different things...one says, that according to his underwriter friend at his preferred lender, a brick apartment building with appropriate Los Angeles County legally mandated retrofits will be 50/50 chance of passing the ($2500 cost to borrower) seismic report... the second says that..." no brick 5 story building with the city mandated retrofits, will ever pass a Fannie backed commercial lender seismic" Are they full of it? Are they giving me BS, to push a higher rate?

Unfortunately, I have not come across any real commercial lenders on BP, via this thread, that have real experience lending to "brickers" in Los Angeles. 

I am looking for someone to reply to this thread, that has very specific experience either financing or getting financing for a multi-story , multi-unit(over 5 units, multi-family commercial)brick apartment building in Los Angeles County. 

Do you personally have this experience? Do you know anybody with this specific experience? Unfortunately, anything other than this, will probably not be helpful to anybody involved...but, I am more than willing to be proven wrong.


Thanks again for your reply and attempt to help me.