Exploring Permanent Financing Options During Construction: A Guide from Atlantic Commercial Lending

Jun 18, 2024

Understanding Permanent Financing Options

Navigating construction financing can be challenging for commercial real estate developers. Securing permanent financing during construction is crucial for ensuring the long-term financial stability of a project. At Atlantic Commercial Lending, we offer insights into various permanent financing options available during construction.

Types of Permanent Financing During Construction

1. **Construction-to-Permanent Loans**:
   - **Overview**: Combines construction and permanent financing into one loan, simplifying the process.
   - **Benefits**: Single closing process, interest-only payments during construction, automatic conversion to permanent mortgage upon completion.

2. **Mini-Perm Loans**:
   - **Overview**: Short-term, interim loans for the period between construction completion and property stabilization.
   - **Benefits**: Flexibility in refinancing options, improved cash flow, easier qualification than traditional permanent loans.

3.  **Secures permanent financing commitment before or during construction, with funding upon completion.
   - **Benefits**: Locks in interest rates, provides financing certainty, includes favorable pre-negotiated terms.

4. **Permanent Loans with Lease-Up Provisions**:

 -Offers permanent financing that includes provisions for the lease-up period.
   - Supports projects with extended lease-up timelines, reduces pressure for immediate full occupancy, provides stability in terms.

5. **Bridge-to-Permanent Loans**

Provides short-term bridge financing during construction, converting to permanent financing upon completion.
   Immediate funds for construction, smooth transition to long-term financing, accommodate various project timelines.

How Atlantic Commercial Lending Can Assist

At Atlantic Commercial Lending, we understand that each project is unique. Our experienced team works closely with developers to identify the best permanent financing solutions tailored to their needs. We leverage our extensive network of lenders to secure the most favorable terms for our clients.

Final Thoughts

Choosing the right type of permanent financing during construction is crucial for the success of any commercial real estate project. At Atlantic Commercial Lending, we guide you through the financing process to ensure your project is well-funded from start to finish. Contact us today to discuss your construction financing needs and discover how we can help you achieve your real estate goals.