Commercial Loans Are Named After the Property

Let's suppose you're a commercial loan broker working on a commercial mortgage loan.  Suppose three couples own a small office building as tenants-in-common, the Smith’s, the Jones and the Kowalski’s. Should you call this the Smith loan? The Kowalski loan? No.

Often this is easy. The property might have a sign that says, the “Shade Tree Office Suites.” Obviously you should usually name the property according to the sign on the building.

But you have to be careful. Oak Park is an infamous, crime-ridden section of Sacramento, California. If the name on the building was, the “Oak Park Office Suites,” you shouldn't use it. As soon as the lender saw the words, “Oak Park”, the deal would be dead. Instead, you might use, the “West Side Office Suites.”

Always give a commercial loan a good name.