OWNER-OCCUPIED COMMERCIAL REAL ESTATE
Financing for the Property Your Business Occupies.
When a business buys or refinances the real estate it operates from, lenders evaluate both the property and the operating company. Cash flow, occupancy, ownership, business history and use of proceeds all matter.
Where This Financing Can Fit
Owner-occupied financing may fit offices, industrial buildings, retail locations, medical properties and other facilities used by the borrower’s business.
The available path can include conventional commercial financing, SBA-related structures or other programs depending on the transaction and business.
What We Evaluate
Business occupancy
Operating-company cash flow
Property type and value
Business and ownership history
Requested leverage
Liquidity, credit and use of proceeds
The Structure Depends on the Deal
Owner-Occupied CRE transactions can range from stabilized conventional requests to situations involving vacancy, renovation, business occupancy or a changing income profile.
Lee Commercial Capital evaluates the property, borrower and objective before narrowing the financing channels.
Common Owner-Occupied Transaction Scenarios
Business purchasing its location
Real estate and operating-company performance are evaluated together.
Refinance of existing property
Current debt, business cash flow and the reason for refinancing matter.
Expansion or relocation
The lender may consider the new facility, projected occupancy and business performance.
Property with excess space
Rental income from third-party tenants may be part of the overall structure.
What to Have Ready for an Initial Review
Property: property address and intended occupancy.
Operations: purchase contract or estimated value.
Transaction: business financial statements.
Borrower: tax returns when required.
Supporting information: current debt.
Details: ownership structure.
Information: liquidity and requested financing.
Questions That Often Matter on an Owner-Occupied CRE Deal
How much of the property must my business occupy?
Requirements vary by lending program and structure, so intended occupancy should be identified at the beginning.
Is business cash flow important?
Yes. Owner-occupied financing commonly evaluates the operating company as well as the real estate.
Can rental income from other tenants help?
Potentially. Third-party tenancy can be relevant, depending on the property and financing structure.
Financing the Property Your Business Occupies?
Send us the property, requested financing amount, occupancy or income information, and timing. We’ll start with the transaction.
Discuss Your Deal