Office Building Loan Programs Explained Winston Rowe & Associates

Jan. 23, 2012 - PRLog -- Office Building Loan Programs Explained Winston Rowe & Associates

Structuring an office building loan is a complex and detailed process. Winston Rowe & Associates has prepared this article to detail the process that prospective clients should expect when obtaining office building financing as well as other types of commercial real estate loans.

Winston Rowe & Associates is a national commercial real estate finance firm specializing in all commercial real estate types without upfront fees.

For more information about commercial real estate loans, you can contact Winston Rowe & Associates at 248-246-2243 or visit them online at http://www.winstonrowe.com  

An office building property is one that has multiple tenants where the primary purpose is to provide a workplace and working environment primarily for administrative and managerial workers. An office building can accommodate as little as one tenant or multiple tenants depending upon the size and building layout. The most common example of an office building would be a property with multiple floors and multiple tenants.

The number and type of tenants in the property can influence how these properties are underwritten. A property with multiple tenants with a long history of occupancy and sufficient remaining lease terms are generally considered a more favorable property than one with a single tenant. An exception to this however would be a single tenant property with a credit rated tenant. A credit rated tenant is generally a publicly traded company that has sufficient credit ratings on their publicly traded debt.

Structure:

Office building commercial loans are generally written with 5, 7, 10, 25 and 30 year terms with or without balloons. In general for a purchase a borrower will be expected to put down a minimum of 20% plus closing costs. We do offer office building commercial loans with as little as 10% down dependent upon the borrower occupying sufficient space in the building as a commercial tenant.
Paperwork:

For this type of loan expect to provide full documentation on the property to include the income and expense statements or property tax returns and property rent roll. If the loan is a refinance you would be expected to provide any available property third party work such as appraisals, environmental reports, title work, or copies of notes.

This type of loan can be taken in the name of the individual or the non person entity such as a corporation however the borrower or individuals that have ownership in the holding company would also be expected to personal guarantee the loan. As such anyone that is personally guaranteeing the loan would also be expected to provide personal tax returns, personal financial statements, and have eligible credit. If the loan size and property qualify it may be possible to do the loan non recourse with simply means that the borrowers do not have to personally guarantee the loan.

Winston Rowe & Associates has an excellent knowledge based resource for valuation and market analysis located at:

http://www.winstonrowe.com/Free_Real_Estate_Resources.html

Winston Rowe & Associates has no upfront free shopping center loans in the following states.

Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine,  Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee,   Texas, Utah, Vermont, Virginia,   Washington, Washington DC, West Virginia, Wisconsin, Wyoming

# # #

Winston Rowe & Associates provides fixed and variable rate commercial mortgages for the purchase and refinance of commercial properties, nationwide with no upfront or advance fees to process or review your transaction. Contact them at 248-246-2243.