Permanent Commercial Real Estate Loans

A permanent loan may sound like a long-term commitment, but that’s because most are amortized over more extended periods of time – up to 30 years. Although not entirely permanent, this type of loan can be perfect for commercial real estate businesses embarking on new projects or renovating current projects.

Definition of a Permanent Loan?

Permanent financing covers terms of five years or more and will either be fully or partially amortized through periodic mortgage payments.

How Does A Permanent Loan Work?

Permanent commercial real estate loans are often issued to developers who have already built a project. Most developers take out a bridge loan to fund the initial start of a project, but upon completion, this loan is then transitioned into a permanent loan.

Types of Commercial Real Estate Loans

Permanent Loan: A long-term financing option that’s amortized up to 30 years. This type of loan typically carries lower interest rates.

Construction Loan: A short-term loan option allows a developer to build or renovate a business structure.

Bridge Loan: Another short-term option that’s often used to pay off a current mortgage is a bridge loan. This frees up equity to roll over into a new property. Once the property is sold, the proceeds are used to pay off the loan.

Permanent Vs. Short Term Financing

Permanent Financing

  • Carry loan terms of 5 years or greater
  • Typically used to purchase fixed assets
  • Borrowers can pay monthly

Short-Term Financing

  • Must be paid within a year
  • Usually paid off in one lump sum
  • Funds are used to fund daily operations and short-term projects

TIP: In addition to commercial real estate, a permanent loan can also be used to purchase fixed long-term assets such as machinery or equipment.

At Barrington Commercial Capital, our diverse commercial real estate loan options cover up to over $100M. We can meet the needs of individual borrowers and their investment objectives, whether we’re talking about owner-occupied properties or commercial investments. If you or a client are in need of financing for a Multifamily, Mixed-Use, Office, Owner-Occupied, Self-Storage, Raw Land, Hospitality, or Fix and Flip investment, we can offer:

  • Rates as low as 5.5% fixed 
  • Non-recourse options 
  • Up to 90% LTV for our conventional products 
  • Up to 100% LTV for some SBA products 
  • The most competitive CMBS loan program in the country 
  • No restriction cash-out refinancing
  • 10 to 40 year fixed terms 
  • Specialty transitional bridge program

If you still have further questions about commercial real estate loans or other alternative financing options that would be best for your future goals, please contact us by submitting a form online, email us at info@bccfirm, or give us a call at 404-602-9100. To stay up to speed on all things Barrington Commercial Capital, follow us on Facebook, Twitter, and LinkedIn. And lastly, sign-up for our monthly email to stay informed of the latest commercial capital options available to you and your business.

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