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
7/23/17

Oil Dives About 2.5%; OPEC Crude Output Rise Forecast
Posted on Thursday July 20, 2017

Oil prices slid on Friday, settling about 2.5% lower after a consultancy forecast a rise in OPEC production.

Malaysia's Petronas Delivers First LNG Cargo To Thailand's PTT
Posted on Thursday July 20, 2017

Petroliam Nasional Bhd announces the delivery of its first liquefied natural gas (LNG) cargo to Thailand.

Deals Set Bullish Tone As Peru Export Halt Tightens Market
Posted on Thursday July 20, 2017

Asian spot LNG prices step higher this week, shrugging off months of weakness.

Neverland Tanker With Disputed Kurdish Oil Reappears Off Malta
Posted on Thursday July 20, 2017

The Neverland tanker has reappeared off the coast of Malta after going off radar near Canada on June 30.

S. Korea Easing Rules At Oil Terminals In Effort To Become Trade Hub
Posted on Thursday July 20, 2017

South Korea is in the process of easing blending restrictions at its oil storage terminals as the world's No. 5 crude importer bolsters an effort to become a North Asia trading hub.

EU Court Rejects Polish Bid To Halt Opal Pipeline Deal, Verdict In 2019
Posted on Thursday July 20, 2017

A European Commission deal giving Gazprom a bigger share of the Opal gas pipeline can go ahead for now until a ruling is issued in 2019.

Trump's America-First Pipeline Plan Draws Ire of American Oil
Posted on Thursday July 20, 2017

Donald Trump's allies in the oil industry are warning the president that his bid to boost US steelmakers could backfire against their efforts to achieve his goal of "American energy dominance."

Greenpeace Activists Protest Near Oil Rig In Norway's Arctic Sea Area
Posted on Thursday July 20, 2017

Environmental activists protest near an offshore rig contracted by Statoil in the remote Norwegian Arctic.

Canada's Encana Smashes Profit Estimates, Shares Rise
Posted on Thursday July 20, 2017

Encana posts a quarterly profit that handily beat analysts' estimates and raised its full-year core asset production growth forecast.

Husky Energy Posts Smaller 2Q Loss On Higher Oil Prices
Posted on Thursday July 20, 2017

Husky reports a smaller loss, helped partly by higher oil prices and an increase in production.

Wall Street Journal
Commercial News

7/23/17

WSJ.com: Commercial Real Estate

Excuse Me, You're Blocking My Sun
Australia?s rapid embrace of rooftop panels?now installed on one in four homes in some areas?has collided with another hot spot of investment, construction of apartments and homes.

1031 Exchange Real Estate Tax Break Faces Extinction
A much-loved tax advantage in the commercial real-estate industry is on the chopping block even as chances dim for the passage of a broad federal tax overhaul this year.

Mall Tenants Play Hardball In Lease Negotiations
Retailers, food and beverage operators and department store chains looking to renew their leases have been asking for more allowances from mall owners.

Mall Project Denied on Former Shea Stadium Site
New York?s highest court on Tuesday blocked the development of a billion-dollar shopping mall on a Citi Field parking lot in Queens, affirming a ruling that the project needs legislative approval to proceed.

New Jersey Landlords Sweeten Perks With Ride-Hailing Subsidies
Food trucks and fitness centers are among the amenities that New Jersey office landlords have been using to attract tenants.The latest perk: Subsidies for digital ride-hailing services such as Uber and Lyft.

McCourt Global Puts Money Into Modular Construction
One of New York City?s most prominent investors is betting on modular construction. McCourt Global led a group of investors in a $6 million round of funding for Brooklyn company FullStack Modular LLC.

Owners of Two Connected Midtown South Buildings Refinance Property
The owners of two connected Midtown South Buildings have secured $430

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