Posts

Infrastructure Loan Financing

Infrastructure project financing is something relatively new to the world of private lending. Historically, public infrastructure projects were large and typically funded by the government through fundraising channels such as bond measures. Later, seeing the need for more options, banks entered and have become the traditional financing provider for commercial infrastructure loans. In recent years private sources of capital have quietly been entering the commercial marketplace. The migration toward private lenders has been slow for a number of reasons, including capital intensity and a long asset life. It takes a specialized team to understand the unique requirements and characteristics of infrastructure loans, this coupled with the previous issues has prevented many lenders from entering the market. Our team is well versed in the unique challenges faced when seeking large commercial project financing. We can provide creative solutions that include both private equity financing and debt financing or a combination financing package.

The difficulties do not end there, as these tend to be the most complex projects we see. Each commercial infrastructure project is very unique and little specific information carries over from one project to the next. In order to spread the risk across the numerous entities involved, complex legal agreements are required. Commercial infrastructure financing often appears clouded with the depth of legal arrangements and unique nature causing a lack of transparency. This concerns many investors who are used to more straightforward, fully transparent projects in other sectors.

We are not deterred by any of these issues, as we look beyond the troubles above. By approaching infrastructure lending as another form of commercial project finance, it allows us to bring our experience and proven methods. This technique allows us to simplify an already complex financing project by adding structure and clear expectations. Our team understands the risks involved, and how those are outweighed by benefits. Once infrastructure projects pass the high costs & risk in the pre-development and construction phases, entering the operational phase they generally become very stable and profitable. Beyond their strong stability and profit potential, financing commercial infrastructure projects is invaluable to the communities the projects serve, providing resources such as reliable clean drinking water. For these reasons, we appreciate any opportunity to work on infrastructure projects where private lending is required.

Commercial Real Estate Loans

Our commercial real estate lending team understands that each person looking to develop, purchase or even refinance real estate has unique needs and requirements in a commercial loan offering. Commercial real estate loans can be used for three primary purposes: development, purchase, and refinance. Real estate development loans and purchase loans can be grouped together for their broader purpose: Investment or Owner-occupied. An easy way to determine which category you call into is to consider the purchase. In an investment loan the property generates the revenue directly, while with an owner-occupied loan, the purchase is used to facilitate revenue creation, such as buying an office.

Investment – Whether developing or purchasing an existing property, these loans are for income-generating properties and generally made to business entities, although occasionally are made to an individual investor. While these commercial real estate investment loans do favor strong financials and higher creditworthiness, the rates on investment loans are typically lower than those which are owner-occupied real estate loans. Additionally, there are even more favorable commercial loan rates when looking to purchase an existing investment property, as there is less risk involved than with a new construction. We pride ourselves on pairing your perfect real estate investment opportunity with the perfect commercial loan product.

Owner-occupied – When it is time to expand, our commercial real estate purchase loans are a commonly used tool to achieve your property funding goals. If this is property that will be used for your business such as a new office or an additional warehouse, the real estate loan would be considered as owner-occupied. Our team can explain how commercial real estate loans can make it possible for your company to stop renting today.

Refinance – Commercial loan rates change over time and there are many real estate loan products in the world of commercial lending, some more favorable than others. There are many reasons why commercial loan refinancing is right for you, such as high interest rate, a high loan payment leading to cash flow issues, and simply paying off something more temporary, such as a commercial construction loan. We have a wide range of commercial real estate loan products that can help to reduce the strain on your business and keep you on the path to success.