August 24, 2005

Commercial Financing on the Four Basic Food Groups

The Four Basic Food Groups - Multifamily, Office, Retail and Industrial

If you need a commercial loan from a commercial mortgage conduit, you need to speak the lingo. In the language of commercial mortgage-ese, the four basic food groups are (1) multifamily (apartments), (2) office buildings, (3) retail properties (includes shopping centers, strip commercial centers, and free-standing retail store buildings), and (4) industrial buildings.

Generally conduits will usually only finance a commercial property if it is a member of the four basic food groups. Hotels, however, are hot right now and conduits are regularly making hotel loans.

Self-storage properties are sometimes in favor with conduits and sometimes out of favor. It may be possible to get a fully-occupied, newer self-storage project financed through a a conduit right now.

Health care properties - congregate care, assisted living, and convalescent hospitals - were once in favor with the conduits. They became over-built, however, about seven years ago and have been out of favor with the conduits ever since.

The main point today is the term, the four basic food groups. This includes multifamily, office, retail, and industrial.

You can find scores of conduit lenders on C-Loans.com.