Commercial Construction Financing, From First Draw to Takeout.
Commercial construction financing is underwritten on a property that does not exist yet. Lenders examine the budget, schedule, approvals in hand, and sponsor's record, and each funds draws, reserves, and cost overruns differently.
​
We organize the project into a complete package before any lender sees it, then compare proposals from banks, debt funds, and other institutional lenders side by side, from the first draw through to the permanent loan or the sale.
WHERE IS YOUR PROJECT?
The best time to start. Test the budget and capital stack with lenders while plans and permits advance, so the equity needed is clear sooner.
Time to go to market. Package the approved plans, budget, contract, and schedule, then compare lender proposals before the start date is set.
Time to plan the exit. Line up a bridge loan, a permanent loan, or a sale well before the construction loan matures or extension costs begin.
[01]
Package
We start with the project: the budget and contingency, plans and permits, the contractor and construction contract, the schedule, and the sponsor's experience and financial statements. Gaps a lender would find are addressed before the request goes out.
​
What we prepare: development budget, sources and uses, construction schedule, approvals status, equity committed, and market support for the completed property.
[02]
Compare
We present the package to banks, debt funds, and other institutional lenders whose programs fit the project's type, size, and stage. Proposals are compared side by side on leverage, rate, interest reserve, recourse, and how each lender funds its draws.
​
What we compare: loan-to-cost, draw and inspection process, completion and repayment guarantees, contingency, extension options, and treatment of cost overruns.
[03]
Convert
As completion nears, we plan the next loan: a bridge loan through lease-up, or permanent financing once the property stabilizes. When a sale may serve you better, we coordinate with our investment sales practice so both paths are weighed ahead of time.
​
What we plan: the timing of the takeout, extension terms, stabilization targets for the permanent lender, and whether a refinance or a sale best fits your hold.
FINANCING BY STAGE
Commercial Construction Financing at Every Stage.
Construction Loan
Funds ground-up and major renovation work in draws as it is completed, often with an interest reserve and completion guarantee.
Permanent Takeout
Long-term financing once the property stabilizes, replacing the construction or bridge loan on terms set by its current income.
Bridge to Stabilization
Carries a finished project through lease-up, until occupancy and income are solid enough to support a long-term permanent loan.
Our land practice represents buyers and sellers of development sites, from vacant urban parcels to industrial and powered land.