Construction Loans through Remington
Remington has hundreds of actively-lending capital sources for commercial construction loans. A commercial construction loan is any loan used to finance the construction of commercial real estate, such as office complexes, retail centers, apartments, hotels, warehouses, and other commercial properties. In general, construction loans are short-term and meant to be paid off when construction is completed.
While construction loan programs offer differing features, they also have a number of characteristics in common. For example, construction loans generally require interest only payments during construction; terms typically are for 12 to 36 months; most lenders require a 12-month interest reserve; and pay off occurs when a certificate of occupancy is issued.
Because borrowers usually require follow-on financing when a construction loan comes due, lenders sometimes offer construction-to-permanent loan programs that provide construction loans during the building phase and longer-term fixed-rate financing that kicks in upon issuance of the certificate of occupancy. This two-in-one loan process tends to be more convenient and less costly for borrowers in that there is only one loan application and one closing, with associated fees, instead of two.
Because of the complexity of construction loan financing, borrowers may find it difficult to compare construction-to-permanent loan financing with the two-loan process. That’s where the experts of Remington can help.
The combined market-focused expertise of the Structured Finance Group at Remington and our Capital Markets Group, with its global network of public and private capital sources, takes the guess work out of construction lending so that commercial real estate clients are able to secure the best possible interest rates and terms consistent with their objectives and market conditions at the time.
Thank you! Please give our team at Remington a call for more information. Andy Bogdanoff