80458 Resource 78777 78860 1071 1105412615489 1215930885712 Controlled Commercial Financing - The Syndication of Large Commercial Construction Loans Commercial Construction Loans Over $10 Million Are Often Made By a Syndicate of Commercial Banks <p>Suppose a mid-sized commercial bank gets a $15 million commercial construction loan request from a commercial property developer who is important to the bank.&nbsp; Fifteen million dollars, however, is an awfully large commercial construction loan for a commercial bank with just $400 million in assets, but let's say the commercial construction loan request is a good one.<br /><br />What might happen is that our mid-sized bank might lead a small syndicate of friendly competitors to make the $15 million commercial construction loan.&nbsp; The loan may be priced at prime plus 1.5% floating with a 7.5% floor and a loan fee of 1.5 points.&nbsp; The lead bank might then sell off participations to other banks at prime plus 1% floating with a 7% floor and a loan fee of 1 point.&nbsp; The lead bank might take $3 million of the $15 million deal.<br /><br />The lead bank would then earn prime plus 1% floating and 1 point on it's $3 million portion and would also earn a lead lender's fee of 1/2% interest and 1/2 point on the entire $15 million.&nbsp; The lead lender would then be responsible for disbursing the progress payments and handling any foreclosure on the commercial construction loan.<br /><br />If you need a large commercial construction loan, you can find several hundred commercial construction lenders on C-Loans.com.<br /><br /><br /></p> 9 application/xml false commercial construction loan commercial financing commercial loan commercial mortgage commercial real estate loan construction financing mezzanine loan C-Loans Commercial Mortgage Lender Databank Find Hundreds of Commercial Construction Lenders http://www.c-loans.com/onlineapp Mozilla/4.0 (compatible; MSIE 7.0; Windows NT 5.1; .NET CLR 1.1.4322; .NET CLR 2.0.50727) 127.0.0.1 127.0.0.1 johngaudio 216.87.92.57 false true false false true 198508 false false true false false false true 78777 blog blogsite/CLoans/web