Commercial real estate (CRE) lending refers to the process of providing funding for the purchase, development, or refinancing of properties used for business purposes. This sector of real estate finance is distinct from residential real estate and encompasses a wide range of property types, including office buildings, retail centers, industrial facilities, multifamily apartment complexes, and hotels.
There are various types of commercial real estate loans available in the market, including traditional loans, small business term loans, and SBA 7(a) loans.
There are various ways to finance the purchase of a commercial property. One of the most common methods is through commercial real estate financing, which involves taking out a loan to purchase or refinance the property.
Other financing methods include using a purchase money mortgage or seeking investments. Traditional bank loans, agency loans, CMBS loans, and life insurance company loans are also popular forms of real estate financing.
The interest rates for these loans can range from 2.5% to 7%, depending on the type of loan and the lender. The repayment period for commercial real estate finance commonly ranges from 5 to 20 years, and the amortization period is usually longer than the loan term.
Current commercial loan rates in New York range from 5.88% to 17.95%, depending on the loan program. However, it’s important to note that these rates can fluctuate and are subject to change based on various factors, such as the type of loan, the lender, and the borrower’s creditworthiness.
Additionally, the interest rates for commercial mortgage loans can vary depending on the type of property being financed. For example, the interest rates for commercial real estate, multifamily, and industrial properties, in general, are 5.59%, 4.91%, and 5.59%, respectively.
Our firm Globixfunding considers projects like developing suburban office buildings with less than 300,000 square feet in partnership with a development company if a significant amount of pre-leasing is secured. Our usual investments are in projects that are worth at least $20,000,000.
We offer a range of commercial real estate lending programs without requiring equity participation, with competitive rates and flexible fixed terms of up to 30 years under special conduit programs, ranging from $5 million to $500 million. We may offer larger loans for qualified projects.
