Construction Financing for Commercial Projects
From ground-up development to major renovations, our construction program provides the capital you need to build and improve commercial properties.
Key Benefits
Commercial Construction Financing
Building or substantially renovating commercial property requires specialized financing. Our construction program provides the structure and support you need.
Types of Projects We Finance
Ground-Up Development
New construction from the ground up:
- Apartment buildings
- Office buildings
- Retail centers
- Industrial facilities
- Mixed-use projects
Major Rehabilitation
Substantial renovation of existing structures:
- Gut renovations
- Adaptive reuse
- Historic rehabilitation
- Building conversions
Construction Loan Structure
Draw Schedule
Funds are not disbursed at closing. Instead, they're released as work progresses:
- Foundation/site work
- Framing/structural
- Mechanical/electrical/plumbing
- Interior finish
- Completion/final draw
Interest Reserve
We build interest payments into the loan so you're not making out-of-pocket payments during construction.
Contingency
Budgets include contingency (typically 5-10%) for unexpected costs.
Sponsor Requirements
Construction lending is sponsor-driven. We evaluate:
- Track Record: Completed projects of similar scope
- Financial Strength: Net worth and liquidity requirements
- Team: Experienced GC, architect, and consultants
- Market: Demand supporting the project
Exit to Permanent Financing
Upon completion and stabilization, you'll refinance into permanent financing:
- Agency loans for multifamily
- CMBS for commercial
- Bank or life company loans
- Our own term loan products
Ideal Use Cases
Frequently Asked Questions
We require sponsors to have completed similar projects. First-time developers may qualify with experienced partners or GCs.
Construction funds are disbursed based on a draw schedule, typically monthly, with inspections confirming work completion.
Ground-Up Multifamily Success
Sponsor completed 72-unit apartment project on time and under budget, achieving full lease-up within 6 months of completion.
Program Details
What You'll Need
- Entitled land or property
- Complete construction documents
- Detailed budget with GC contract
- Experienced development sponsor
- Equity contribution documented
- Exit strategy (sale or refinance)
Related Programs
Ready to Get Started?
Our team specializes in Commercial Rehab and Construction. Let us help you find the right solution for your needs.