Commercial Mortgage

Commercial Mortgage Financing:

• Acquisition
• Refinance
• Fixed Rate long Term
• Floating Rate
• Bridge
• Interim
• Mezzanine
• Equity
• Construction & Rehab

We provide competitive rates and attractive terms. AFR approaches loans creatively as our goal is to place financing to benefit the borrower with the best possible return on his investment. We can structure loans with earn out provisions, mezzanine debt, cross collateralization and equity participation.

Rates and Terms

Rates vary according to the property type and are based on a specific index. Generally, long term fixed rate loans are priced based on a spread over the corresponding 5, 7, 10 or 20 Year U.S. Treasury Note or Treasury SWAPS.  The corresponding Thirty Day LIBOR is the base interest rate used, plus a spread on a floating rate loan. Short term loans are usually based on prime rate or short term treasuries, as the base rate, plus a spread.

Assumable, non-recourse (will have certain carve-outs clauses), fully amortized loans with 5, 7, 10 and 15 year terms with 20, 25 and 30 year amortizations are available. Depending on the program, loan to values up to 75% on senior debt and can be as high as 90% with mezzanine financing. Mezzanine pieces are provided as a percentage of total value of stabilized properties and range between 5% and 20% of the asset’s value. Mezzanine debt is typically structured on a recourse basis, although non recourse is available, at a fixed preferred rate. Terms may run for up to 5 years with possible options to extend.