What Terms are You Getting for Commercial Loans These Days?

[Ori Skloot]

Hi folks,

I have a property in Richmond, CA that currently has several warehouses but the zoning has been changed to high density residential. I have plans to develop 10 live/work lofts and want to get a $2.1M construction loan that will then convert into a standard loan once the property is stabilized.  

I have had some preliminary conversations with BridgeBank, Fremont Bank and Heritage Bank.   One bank said 80% loan to cost at around 5%.  Another said 65% loan to value but at 4%.   This is once the property is stabilized.  

Anyone have any info on recent commercial loans they got in the SF Bay Area and the type of rate and terms?  Any recommendations for other banks to talk with?

Thanks!

Ori

[Paul Shannon]

From a local credit union I have commitment for a step-down rate as renovations are completed. 4.25% at 80% LTV, 10 year 25AM. Once value-add is complete the rate will drop to 4%. Almost like a bridge loan (a cheap one!), but its all baked in to a 10 year fixed contract.