LOAN INFORMATION


 

 

 

Mixed Use Lending

offers Mixed Use Property Financing to real estate investors looking to purchase properties containing both commercial and residential elements. We are here to help you obtain your new mixed-use property without the restrictions of other lenders. Whether your property is composed of 1% or 99% residential space, we can customize a financing solution to meet your unique needs.


Features


Loan Amounts Up To $20,000,000

Multiple loan terms are available to best suit your needs.

Available for Owner and Non-Owner Occupied Properties

Apartment Bank also provides financing to non-resident aliens.

Nationwide Lending Platform

Most large metropolitan statistical areas with populations of 250,000 or more are considered for mixed use property financing.

Flexible Property Ratios

1.25:1 DCR; increases to 1.30:1 if commercial component is greater than 50% of the square footage and total income.

Eligible Properties

  • Stabilized properties with at least 2 units featuring apartment space with retail, office or industrial space
  • No property age restrictions
  • Tier I, Tier II and Tier III properties acceptable

Loan Amounts

  • $300,000 - $20,000,000 considered for buildings with a majority residential configuration
  • $750,000 - $10,000,000 considered for buildings with a majority commercial configuration

Terms & Amortization

  • Adjustable, 3, 5, 7, and 10 year hybrid loans amortized over a 30-year term
  • Interest only options available

Prepayment Penalty

  • Step-down prepayment penalties during the fixed rate portion of the loan

Loan to Value Ratio

  • Maximum LTV 70%
  • Exceptions considered on a case-by-case basis

Debt Coverage Ratio

  • 1.25:1 DCR, but increase to 1.30:1 with pure commercial mixed-use
  • Exceptions considered on a case-by-case basis

Credit Score

  • No minimum credit score requirements

Application Fee

  • Application fees are based on the customer’s qualifications and may range from $1,500 to $5,000.
  • Fees will be applied towards third party costs including, but not limited to, the borrower’s credit report, appraisal report and property inspection

Pricing

Borrower

  • Individuals, trusts, limit liability companies, limited partnerships and corporations are eligible for financing. Financing is also available for non-resident aliens.

Territory

  • Most large metropolitan statistical areas will be considered with populations of 250,000 or more

Success Story

CHALLENGE
A guarantor came to us requesting a cash-out refinance loan for a 46-unit mixed-use building on a small downtown street near a major university. The owner struggled to secure traditional financing mainly due to lease rollover risk, marginal overall annual income, and sub-optimum mix of residential units based on a high percentage of studios.

APARTMENT BANK LENDING SOLUTION
At Apartment Bank, we were able to structure a loan for the guarantor that provided extensive liquid assets post-close which significantly improved cash reserves and allowed for subject property improvements while maintaining a strong equity position in the property. Upon understanding this customer’s specific needs, we approved the loan based on the borrower’s strong debt-service coverage ratio, good property cash flow and a relatively low LTV.

SEE MORE SUCCESS STORIES

LET'S START THE CONVERSATION

We want to learn more about your lending needs. Call us directly at 800-656-5626 or fill out our form and one of our loan specialists will reach out to you.

GET A QUOTE
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