Commercial lending for 6 unit apartment in Ohio?

Question

Hi BP!

So... I just took my first step in increasing the # of real estate properties that I own by winning a bid for a 6 unit apartment in Ohio.

I've been searching around and for a commercial loan.... the range that I could find is the following:

20 yr amortization

5 yr balloon

4.5-5.5% APR

20%

Are these the best rates our there?  I was hoping for a 25 yr or maybe even a 30 yr, but they seem to be hard to find for a 6 units apartment/commercial property.

Any suggestions would be greatly appreciated.

Jose Belman · Answer

Typically it is 75% , let me know if you find lender with 80% LTV  @Ryan West Do you lend in other states outside of Ohio Such as California, TEXAS etc.. ?

Federico Gutierrez · Answer

Don't get greedy over 5% take the loan. Your in AZ an bought in OH you'll be lucky to fine most will deny as they don't lend to residents not residing in the same state they own property.

Which city in OH did you buy in anyways

Ayodeji Kuponiyi · Answer

@Chad Canales keep us posted on what you choose/progress!

Ryan West · Answer

25 yr is tough to find on commercial, typically you'll find a 10 yr balloon with 20 yr am.  We have a 15 yr FIXED rate product on commercial, or the above balloon.  We can finance 80% on commercial as well.  Good luck man!

Chad C. · Answer

Thanks @Darryl Dahlen.

I found a 80% but 20 yr.  I am still looking for an 80% + 25 yr.  :)

Thanks againChad

Darryl Dahlen · Answer

Based on a scan of that list, I only see one lender who would be interested in a small 6-unit loan. Almost all those are CMBS/Agency/Life companies with large(r) loan requirements.That being said, WF has a small balance program that could be of use to you. The offer 25 year amortizations, but their cap is 75% LTV. If you can find 80% LTV then you're doing well, but you really want to make sure that lender is closing loans at that LTV. Very few are.

Chad C. · Answer

Thanks a bunch Damion! Ill check them out.

Damion Byros · Answer

Editor’s Note: The following rankings are based on responses to NREI’s 21st annual Top Lenders Survey and reflect total dollars financed or arranged in commercial real estate during the 2011 calendar year.

This list has been amended to include firms that missed the original deadline.

1. Wells Fargo

Try these out Financed in 2011: $43.66 billion420 Montgomery St.San Francisco, CA 94104www.wellsfargo.com/realestateOfficers: Mark Myers, Head of Commercial Real Estate; Ed Blakey, Head of Specialized Lending - Real Estate

2. PNC Real EstateFinanced in 2011: $11.01 billion249 Fifth Ave.Pittsburgh, PA 15222-2707PH: 877.762.7775www.pnc.com/realestateOfficers: Jim Rohr, Chairman & CEO; Bill Demchak, Vice Chairman

3. MetLifeFinanced in 2011: $11.00 billion200 Park Ave.New York, NY 10166PH: 212.578.2211www.metlife.com/realestateOfficers: Robert Merck, Senior Managing Director, Real Estate Investments; Mark Wilsmann, Managing Director, Real Estate Investments

4. Prudential MortgageCapital Co.Financed in 2011: $9.70 billion100 Mulberry St., 8GC4Newark, NJ 07102PH: 888.263.6800www.prumortgagecapital.comOfficers: David Twardock, President5. J.P. MorganFinanced in 2011: $8.00 billion383 Madison Ave.New York, NY 10179www.jpmorgan.comOfficers: Jamie Dimon, CEO - J.P. Morgan Chase & Co.; Jes Staley, CEO - J.P. Morgan Investment Bank

6. Strategic Alliance Mortgage (SAM)Financed in 2011: $7.60 billion7100 East Pleasant Valley - Ste. 350Cleveland, OH 44131PH: 216.328.9700www.samalliance.comOfficers: F. Brock Walter, President; Dennis Bernard, Vice President

7. KeyBank Real Estate CapitalFinanced in 2011: $7.29 billion127 Public Sq.Cleveland, OH 44114PH: 888.539.2221www.key.comOfficers: EJ Burke, Executive Vice President & Head of Key Bank Real Estate Capital; William Hipp, Executive Vice President & Head of Institutional Real Estate & Health Care

8. CBRE Group Inc.Financed in 2011: $6.14 billion11150 Santa Monica Blvd., Ste. 1600Los Angeles, CA 90025PH: 310.405.8900www.cbre.comOfficers: Brett White, CEO; Robert Sulentic, President

9. Northwestern MutualFinanced in 2011: $4.51 billion720 E. Wisconsin Ave.Milwaukee, WI 53202PH: 414.665.2457www.northwesternmutualrealestate.comOfficers: David Clark, Senior Vice President Real Estate; Mike Cusick, Managing Director - West

10. Cornerstone Real Estate AdvisersFinanced in 2011: $4.00 billionOne Financial PlazaHartford, CT 06103PH: 860.509.2219www.cornerstoneadvisers.comOfficers: David Reilly, CEO; Mark Higgins, President

11. BerkadiaFinanced in 2011: $3.91 billion118 Welsh Rd.Horsham, PA 19044PH: 800.446.2226www.berkadia.comOfficers: Hugh Frater, CEO; Randall Jenson, President & CFO

12. NorthMarq CapitalFinanced in 2011: $3.77 billion3500 American Blvd. W., Ste. 500Bloomington, MN 55431PH: 952.356.0080www.northmarq.comOfficers: Jeff Weidell, President; William Ross, President

13. CWCapital LLCFinanced in 2011: $3.67 billionOne Charles River Pl.Needham, MA 02494PH: 781.707.9300www.cwcapital.comOfficers: Michael D. Berman, CMB, President & CEO; Donald P. King, Managing Director - National Fannie Mae & Freddie Mac

14. Red Mortgage Capital LLCFinanced in 2011: $3.66 billionTwo Miranova Pl., 12th Fl.Columbus, OH 43215PH: 800.837.5100www.redcapitalgroup.comOfficers: Mark C. Beisler, Chairman & CEO; Kenneth H. Bowen, President

15. Walker & DunlopFinanced in 2011: $3.22 billion7501 Wisconsin Ave., Ste. 1200EBethesda, MD 20814PH: 301.215.5500www.walkerdunlop.comOfficers: William M. Walker, Chairman & CEO; Howard W. Smith, COO

16. Natixis Real Estate Capital LLCFinanced in 2011: $3.11 billion9 W. 57th St., 36th Fl.New York, NY 10019PH: 212.891.5700www.re.natixis.comOfficers: Gregory A. Murphy, Managing Director; Mitch Karig, Vice President

17. Red Mortgage Capital LLCFinanced in 2011: $2.65 billionTwo Miranova Pl., 12th Fl.Columbus, OH 43215PH: 800.837.5100www.redcapitalgroup.comOfficers: Mark C. Beisler, Chairman & CEO; Kenneth H. Bowen, President

18. Pacific Life Insurance Co.Financed in 2011: $2.63 billion700 Newport Center Dr.Newport Beach, Ca 92660Officers: James Morris, CEO; Khanh Tran, President

19. Grandbridge Real Estate CapitalFinanced in 2011: $2.47 billion200 South College St., Ste. 2100Charlotte, NC 28202PH: 704.332.4454www.gbrecap.comOfficers: Thomas S. Dennard, CEO; David A. Roberts, CMB, President & COO

20. Citi Community CapitalFinanced in 2011: $2.29 billion390 Greenwich St., 2nd Fl.New York, NY 10013www.citicommunitycapital.comOfficers: Hal Kuykendall, Managing Director; Steven Fayne, Managing Director

21t. Starwood Property TrustFinanced in 2011: $2.10 billion591 W. Putnam Ave.Greenwich, CT 06830PH: 310.893.2777www.starwoodpropertytrust.comOfficers: Boyd Fellows, Director & President; Warren de Haan, Chief Originations Officer & Managing Director

21t. Beech Street CapitalFinanced in 2011: $2.10 billion7600 Wisconsin Ave., Ste. 800Bethesda, MD 20814PH: 855.933.6667www.beechstcap.comOfficers: Alan Fishman, Chairman; Grace Huebscher, President & CEO

23. ING Investment ManagementFinanced in 2011: $2.02 billion5780 Powers Ferry Rd. NW, Ste. 300Atlanta, GA 30327PH: 770.690.4600www.inginvestment.comOfficers: Jeff Becker, CEO, ING Investment Management US; Christine Hurtsellers, ING IM CIO, Fixed Income & Proprietary Investments

24. M&T Realty Capital Corp.Financed in 2011: $1.80 billion25 South Charles St.Baltimore, MD 20201PH: 800.737.2344www.mandtrealtycapital.comOfficers: Tari Flannery, President; Arnold Smeenk, Group Vice President & National Production Manager

25. Principal Real Estate InvestorsFinanced in 2011: $1.78 billion801 Grande Ave.Des Monise, IA 50392PH: 800.533.1390www.principalglobal.comOfficers: Patrick Halter, Executive Director, Real Estate; Randy Mundt, President and Chief Investment Officer