Office Building Commercial Loan
by: churchfinancing
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An office building property is
one that has multiple tenants where the primary purpose is to provide a
workplace and working environment primarily for administrative and managerial
workers. An office building can accommodate as little as one tenant or multiple
tenants depending upon the size and building layout. The most common example of
an office building would be a property with multiple floors and multiple
tenants.
in the property can influence how these properties are underwritten. A property
with multiple tenants with a long history of occupancy and sufficient remaining
lease terms are generally considered a more favorable property than one with a
single tenant. An exception to this however would be a single tenant property
with a credit rated tenant. A credit rated tenant is generally a publicly
traded company that has sufficient credit ratings on their publicly traded
debt.
Structure:
loans are generally written with 5, 7, 10, 25 and 30 year terms with or without
balloons. In general for a purchase a borrower will be expected to put down a
minimum of 20% plus closing costs. We do offer office building commercial loans
with as little as 10% down dependent upon the borrower occupying sufficient
space in the building as a commercial tenant.
Paperwork:
to provide full documentation on the property to include the income and expense
statements or property tax returns and property rent roll. If the loan is a
refinance you would be expected to provide any available property third party
work such as appraisals, environmental reports, title work, or copies of notes.
This type of loan can be taken
in the name of the individual or the non person entity such as a corporation
however the borrower or individuals that have ownership in the holding company
would also be expected to personal guarantee the loan. As such anyone that is
personally guaranteeing the loan would also be expected to provide personal tax
returns, personal financial statements, and have eligible credit. If the loan
size and property qualify it may be possible to do the loan non recourse with
simply means that the borrowers do not have to personally guarantee the loan.
Fees
transaction will include the costs of reports such as appraisals, title work,
environmental reports if necessary, and other typical closing costs. Get more information
http://www.commercialmortgage.net
Article Source: http://www.ArticleStreet.com/profile/churchfinancing-4123.html
About the Author
This
article has been provided courtesy of http://www.commercialmortgage.net. Commercial
Mortgage is a Commercial loan division of Griffin Capital Funding offers commercial
loans, and Office
building loan
with no personal guarantees, favorable loans rates and good terms.
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