For over 31 years, we have had the flexible financing options to meet your needs for an apartment construction loan.
Call us toll-free at 1-800-595-1474
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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
6/4/20

CNOOC grants Empyrean 12-month extension for first phase drilling at Block 29/11
Posted on Wednesday June 03, 2020

China National Offshore Oil Corp. (CNOOC) has granted a 12-month extension to Empyrean Energy for the first phase of exploration drilling in Block 29/11, offshore China, due to the COVID-19 pandemic and the resultant global control policies.

Ineos completes Norwegian Sea farm-out to Rex unit
Posted on Monday June 01, 2020

Ineos E&P Norge AS closed a deal May 29 to transfer 15% interest in two Norwegian Sea licenses to Lime Petroleum AS (LPA), a 90% subsidiary of Rex International Holding Ltd., LPA said June 1.

ANPG provides data package for oil exploration onshore Angola
Posted on Friday May 29, 2020

The Angola National Agency of Oil, Gas, and Biofuels has provided more onshore data for oil exploration in the Lower Congo and Kwanza onshore basins ahead of an official announcement to begin new bidding rounds.

APT identifies lower Jurassic source rocks offshore Canada
Posted on Friday May 29, 2020

Applied Petroleum Technology (APT), Oslo, has identified lower Jurassic source rocks and a genetically related set of oil shows in the Southern Grand Banks petroleum system offshore Canada.

Jersey gains operatorship of UKCS license P2170
Posted on Wednesday May 20, 2020

Wall Street Journal
Commercial News

6/4/20

WSJ.com: US Business

Supply Chains, Safety Protocols Hobble U.S. Factories
Manufacturers emerging from weeks in hibernation during the coronavirus pandemic are accelerating production with jumbled supply chains and less efficient plants, making it harder to rebuild the U.S. industrial sector.

Health Insurers Offer Premium Discounts
Anthem is joining the growing number of health insurers offering premium discounts, as the companies see savings from sharp drop-offs in surgeries and other types of care canceled because of the coronavirus pandemic.

Amid Coronavirus Shutdowns, Landlords Often Determine Fate of Small Businesses
On Brooklyn?s Fifth Avenue, business owners are frantically seeking rent cuts so they can ride out the pandemic. But some landlords are also under financial pressure.

UAW Ex-President Pleads Guilty to Embezzlement, Racketeering Charges
Former United Auto Workers President Gary Jones pleaded guilty to embezzlement of union funds and racketeering, marking the highest-profile conviction yet in the government?s yearslong investigation into labor corruption within the auto industry.

Snap Says It Won't Promote Trump's Snapchat Account
Social-media company Snap said it will no longer promote the Snapchat account of President Trump on its home page after finding that his public remarks could incite racial violence, a spokeswoman said.

Coronavirus Pandemic Drives Unemployment Up Across U.S. Metro Areas
The coronavirus pandemic caused unemployment to rise in every metropolitan area in the U.S. in April, the first full month of widespread stay-at-home orders and business shutdowns, hitting hardest tourist destinations and factory towns.

A Painful Economic Reversal of Fortune for African-Americans
The fallout from the pandemic and protests highlights the income and wealth gaps that leave black Americans vulnerable.

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