Commercial Real Estate Funding

Commercial Real Estate Funding

Commercial Real Estate Funding

You want proceeds that match the business plan, covenants that you can live with, and a closing date that holds. We arrange senior debt, bridge and construction loans, mezzanine, preferred equity, co-GP capital, sale-leaseback and ground lease structures, plus permanent takeouts when the asset is stable. No drama, no games. If a deal does not clear, we say so early and reset the plan.

Funding Products And When To Use Them

Senior Acquisition Loan
  • For stabilized or near-stabilized assets with predictable cash flow.
  • Proceeds sized to Debt Service Coverage Ratio and in-place Net Operating Income.
  • Common asks: cash management, interest rate protection, quarterly reporting.
Bridge Loan
  • For value-add plans that need time for capex, lease-up, or mark-to-market.
  • Interest reserve sized to the real timeline, not to a wish list.
  • Exit test required: refinance math or sale proceeds that actually pencil.
Construction Financing
  • For ground-up or heavy repositioning with defined budget and schedule.
  • Guaranteed maximum price where practical, contingency, third-party monitoring.
  • Completion guaranty scoped to reality and sponsor capacity.
Mezzanine Debt
  • For proceeds above senior limits with a fixed pay profile.
  • Pledge of equity interests and an intercreditor that the senior will sign.
  • Watch the test levels. Triggers should be objective and workable.
Preferred Equity
  • For flexibility on current pay and cures where cash is tight early.
  • Consent list tailored to senior covenants so documents do not clash.
  • Clear waterfalls and buy-sell mechanics that protect control.
Co-GP Capital
  • For earnest money, pre-development, and working capital at the GP level.
  • Hurdles and promote splits that match the plan and the risk.
  • Governance rules that keep decisions crisp.
Sale-Leaseback
  • For owner-operators who want cash out while keeping control of operations.
  • Cap rate set by tenant credit, coverage, and lease terms.
  • Watch renewal options and inflation clauses to protect long-term value.
Ground Lease Capital
  • For higher land value markets where splitting the fee makes sense.
  • Lower senior leverage on the leasehold and a different risk profile.
  • Reset mechanics and ground rent coverage must be crystal clear.
Permanent Takeout
  • For stable assets with track record and leases that support term debt.
  • Works as a forward when construction or bridge lenders want a visible exit.
  • Focus on prepayment math, cash sweep terms, and reserves.

Proceeds, Pricing, And Key Tests

The bands below are indicative. Final terms depend on asset quality, market depth, sponsor record, leverage, and timing. We quote spreads over a base rate or all-in coupons based on lender preference. We will tell you where your file sits before you spend on reports.

Asset Type Senior Proceeds Bridge Proceeds Construction LTC Typical Pricing Bands
Multifamily 60% to 70% LTV with 1.25x to 1.35x DSCR 65% to 75% of cost 60% to 70% of cost Senior: base plus 175 to 325 bps. Bridge: base plus 350 to 600 bps.
Industrial And Logistics 60% to 70% LTV with 1.30x to 1.40x DSCR 65% to 75% of cost 60% to 70% of cost Senior: base plus 175 to 300 bps. Bridge: base plus 325 to 550 bps.
Self-Storage 60% to 65% LTV with 1.35x+ DSCR 60% to 70% of cost 55% to 65% of cost Senior: base plus 200 to 350 bps. Bridge: base plus 375 to 600 bps.
Retail With Credit Tenants 55% to 65% LTV with 1.35x+ DSCR 60% to 70% of cost 55% to 65% of cost Senior: base plus 200 to 400 bps. Bridge: base plus 400 to 650 bps.
Select-Service Hospitality 50% to 60% LTV with 1.40x+ DSCR 55% to 65% of cost 50% to 60% of cost Senior: base plus 300 to 600 bps. Bridge: base plus 550 to 900 bps.
Mixed-Use 55% to 65% blended LTV with 1.30x+ DSCR 60% to 70% of cost 55% to 65% of cost Senior: base plus 225 to 450 bps. Bridge: base plus 450 to 750 bps.
Mezzanine Debt
Coupon guideline: base plus 800 to 1200 bps with fees. Proceeds lift: 5% to 15% of capital stack. Hard tests and cure rights negotiated up front.
Preferred Equity
Target gross yield: low teens to high teens depending on risk. Pay structure blends current and PIK. Consent list aligned to senior loan.
Co-GP Capital
Promote sharing by hurdle. Use only what you can actually carry at exit. Documentation must avoid hidden control flips.

Our Process From Mandate To Closing

  1. Reality Check. We benchmark proceeds, pricing, and timing against current appetite. If a plan misses the mark, we rebuild it now rather than watch it fail later.
  2. Underwriting File. Five-year cash flow model, rent roll detail, capital plan, exit logic, sensitivity tables, and a short credit memo a lender will actually read.
  3. Distribution. Targeted outreach to banks, debt funds, life companies, private credit and equity partners that fit the asset, market, and tenor.
  4. Term Sheets. Two to three competitive options for clean files. We police fees and push for covenants you can live with.
  5. Diligence. Third-party reports, approvals, intercreditor or recognition agreements, and document comments held to a real timeline.
  6. Closing And Draw. Conditions precedent, reserves, account control, and first advance. We stay on until the first reporting cycle is complete.

Documents And Data That Speed Up Approval

Core Items
  • Purchase agreement or site control with dates that you can hit.
  • Historical financials, trailing twelve months, rent roll and leases.
  • Capex scope, bids, schedule, and contractor profile.
  • Market study, lease comps, and sales comps that tie to the model.
  • Sponsor CVs, net worth and liquidity statement, and references.
Third-Party Reports
  • Appraisal, environmental, zoning, survey, property condition.
  • Title and insurance, including builder’s risk for construction.
  • For takeouts: operating history and any stabilization tests.

Illustrative Scenarios

Infill Industrial Value-Add
Senior bridge with interest reserve sized to a nine-month leasing plan, small preferred equity slice to close the gap, forward takeout lined up at target DSCR.
Ground-Up Self-Storage
Construction loan with contingency and third-party monitoring, completion guaranty scoped to budget, staged rate cap strategy, and a permanent option at stabilization.
Credit-Tenant Retail
Senior term loan sized on DSCR with modest amortization, small mezzanine strip for proceeds, sale-leaseback used on a separate asset to raise equity.

Frequently Asked Questions

What drives senior proceeds on a stabilized deal
Debt Service Coverage Ratio, quality of income, rollover profile, market liquidity, and sponsor record. Lenders test exit and refinance paths, not just year one numbers.
Bridge or preferred equity for a value-add plan
Bridge debt is cheaper but demands a stronger exit and tighter tests. Preferred equity gives payment flexibility and cure rights. We price both against the same model and pick the one that carries lower execution risk.
How long from term sheet to funding
Thirty to sixty days for acquisition or bridge with a clean file. Construction takes longer due to plans, permits, bids, and monitoring setup. We hold the timeline with weekly issue logs.
Can first-time sponsors raise with no track record
Yes, if the team includes third parties with real wins and if guaranty and liquidity are credible. We present the bench, the plan, and the controls so credit teams can get comfortable.

Request Commercial Real Estate Funding Support

Share the purchase agreement or site control, the business plan, and your timeline. We will return with proceeds, likely pricing, and a route to close that matches the deal.

Start Your Real Estate Financing Process

All figures are indicative. Final terms depend on third-party reports, market depth, credit approval, and documentation. Nothing here is a commitment to lend or invest. Services are subject to know-your-customer checks, anti-money-laundering controls, and sanctions screening.

Get Started With Us

Submit Your Deal & Receive a Proposal Within 1-3 Working Days

Submit your deal using our secure intake form, and receive a quote within 1-3 business days. Existing clients can connect with their relationship manager through our secure web portal.


All submissions are promptly reviewed, and all communications are conducted through the intake form or the client portal for a seamless and secure process.

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Once we receive your submission, our team will review your information to determine feasibility. If eligible, you will receive a proposal or term sheet within 1–3 business days. Visit our FAQ and Procedure pages for more information.

Disclaimer: Financely provides financing based on due diligence and feasibility. Approval is not guaranteed, and past performance does not predict future outcomes. All terms are subject to review. Financely primarily assists with structuring and distribution. Qualified parties carry out the project if the client approves the proposal.

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