For over 31 years, we have had the flexible financing options to meet your needs for an apartment construction loan.
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Apartment Construction Loan


Looking for commercial construction loans or apartment construction loans? Are you looking to build an apartment, office building, a mixed use, retail center, industrial building, or any other type of commercial property? We've been in the commercial real estate financing business since 1977 and can help! Ocean Pacific Capital is your source for access to the best financing programs from the most aggressive apartment construction investors in the world. When you make the decision to finance your apartment with us, you ensure you are getting the best rate and terms this market has to offer.

The process to obtain an apartment construction loan can be a complex process, which involves several tests. You need our trusted expertise and years of experience to guide you through the process. The first test is the profit test, which will determine an estimate of the value of your finished project and if it will be worth more than it will cost to construct. Similarly, a Loan-to-Value Ratio test will determine, once a project is completed and the commercial property is occupied, the construction loan will be a certain percentage loan-to-value. Most construction lenders will permit up to 80% loan-to-value, which will depend on the borrower's credit, cash flow, and various other factors. Depending on the borrower's qualifications, additional equity may be obtained through a mezzanine loan.

Commercial construction lenders and apartment construction lenders often rely on the loan-to-cost ratio as they do not often trust the appraisal of the building. The loan-to-cost ratio is the calculated percentage of the total cost of the project that the construction lender is being asked to loan or cover for the construction of the project. Normally, developers cover at least 20% of the total cost of the project in the form of free and clear land. However, if the apartment construction loan or commercial construction loan is up to or more than 90% of the cost, the lender will require that the developer obtains more leverage.

The developer may obtain more leverage through a mezzanine loan. When planning construction of an apartment or a commercial property, something to consider is how much the money the property will bring in (income) to qualify for a takeout loan. If a takeout loan is large enough it may be able to pay off the construction loan, allowing the apartment construction lender or the commercial construction lender to get out of the deal. To determine whether or not the takeout loan will be large enough to pay off the apartment construction loan or the commercial construction loan, the construction lender will calculate the Debt Service Coverage Ratio. This ration should be larger than 1.25 and the net income from the project must be larger than 25% than the proposed payments of the loan. The net worth-to-loan size ratio is also important to the construction lender, whether it is an apartment construction loan or a commercial construction loan because the developer's net worth should be at least as large, if not larger, than the loan amount of the project.

For over 31 years, with the lowest and most competitive wholesale rates in the nation, rebate pricing, 80% LTV, 30 years amortization, interest only, and no balloon payments, our programs are the most desired and the first choice of borrowers nationwide. Loan amounts are available starting from $500,000 with no upper limit. We specialize in wholesale commercial loans, wholesale conduit loans, wholesale apartment loans, wholesale apartment financing, wholesale apartment lending, wholesale apartment refinancing, wholesale mixed use loans, and wholesale apartment purchase loans.

We understand what it takes to close a commercial loan because this is what we've been doing since 1977. And as always, we strive to exceed our client's expectations. Our responsibility is to get your loan processed, underwritten and closed in a timely fashion. If you are unsure about the process of obtaining a commercial loan, let us help you. Our commercial loan specialists will be more than happy to answer any questions that you may have. Call us today at 1-800-595-1474 to get started!


Whatever your financing needs,
we will tailor a loan that's right for you.

 


Daily Oil & Gas and Wall Street Journal News
6/19/18

Crude Slips on US-China Trade Spat, Possible OPEC Output Boost
Posted on Monday June 18, 2018

Crude dropped as an escalating trade war between the world's two largest economies imperiled energy demand.

Iran Rules Out OPEC Deal As Russia, Saudi Push For Oil Output Hike
Posted on Monday June 18, 2018

Iran says OPEC is unlikely to reach a deal on oil output this week.

Source: Anadarko Staff Under Lock-Down In Mozambique After Attacks
Posted on Monday June 18, 2018

Anadarko has placed staff working on a LNG plant in northern Mozambique under 'lock-down.'

Iran Says South Pars Not Affected By US Actions, Upgrading Oilfields
Posted on Monday June 18, 2018

The possible withdrawal of Total from South Pars gas field has not slowed down the project, a senior Iranian official says.

Norway's Oil Production Falls To Six-Year Low In May
Posted on Monday June 18, 2018

Norway's monthly oil output fell to a six-year low in May.

Sources: Spain's Repsol Hires Tanker For Iran's Pars Oil As Sanctions Loom
Posted on Monday June 18, 2018

Repsol has hired Malta-flagged suezmax Mabrouk to ship the first export parcel of Pars oil.

Louisiana Firm Wants to Make Safety More Fashionable
Posted on Monday June 18, 2018

Ill-fitting - and unsafe - flame-resistant clothing: another proverbial glass ceiling this woman-owned business seeks to shatter. IMAGE SOURCE: HauteWork

California Looks To Boost Natgas Stored In SoCalGas Aliso Canyon
Posted on Monday June 18, 2018

California utility regulators recommended increasing the amount of natural gas that SoCalGas can inject into its Aliso Canyon storage facility.

NOC Head: Libya Port Attack Cut Output By 400,000 Bpd
Posted on Monday June 18, 2018

Libya has lost some 400,000 barrels per day of oil production in recent days because of militant attacks.

Russia's Oil Export, Refinery Plans Point To Increase In Output
Posted on Monday June 18, 2018

Ahead of a meeting with Saudi Arabia and other producers, Russia already plans to increase oil exports.

Wall Street Journal
Commercial News

6/19/18

WSJ.com: Commercial Real Estate

Sportswear-Maker Puma to Open New York Flagship
Germany?s Puma has signed a lease deal to creating a marquee location on Fifth Avenue that will be the first of its kind for the company in North America.

Kushner Cos., Brookfield Near a Deal for Stake in 666 Fifth Ave.
The real estate arm of Brookfield Asset Management is in advanced talks with Kushner Cos. to buy roughly a 50% stake in 666 Fifth Ave. and invest hundreds of millions of dollars in the Manhattan office tower, which has been at the center of a controversy over possible conflicts of interest involving Jared Kushner, President Donald Trump?s son-in-law and adviser.

Sign of the Times: New Office Space Created in Retail's Tumult
Normandy Real Estate Partners? $133 million deal for the upper portion of ABC Carpet?s flagship store is an example of office space edging into territory that once was retail?s domain.

Want to Buy a Luxury Hotel in the U.S.? Try China's Insurance Regulator
When Chinese regulators seized control of Anbang Insurance, they took ownership of more than a dozen luxury U.S. hotels. Now, as the government looks to sell, it faces a problem: The buildings likely are worth less than what Anbang paid only a couple of years ago.

New York's Commercial Property Slump Shows Signs of Slowing
After a two-year plunge, brokers are optimistic that more deals will take place in 2018.

NYC Council Stops Midtown Tower Construction
Work on an 800-foot-tall tower in East Midtown that has been under construction for six months was halted last week following a vote by the New York City Council to limit skyscrapers in the area,.

Malls Never Wanted Gyms. Now They Court Them
Mall owners long treated gyms, massage parlors, and billiards halls as unwanted tenants that attracted lower-rent visitors who were unlikely to shop. Now they?re giving health clubs some of their best real estate.

BRE #:00619059
Charles Elfsten, President
Charles A. Elfsten
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