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
9/22/19

Oil Prices Up for the Week
Posted on Thursday September 19, 2019

An exciting week for WTI and Brent crude oil future has come to an end.

US Drillers Lose 18 Oil, Gas Rigs
Posted on Thursday September 19, 2019

The U.S. lost a net total of 18 oil and gas rigs this week.

Bahamas Terminal Returns to Full Ops
Posted on Thursday September 19, 2019

Buckeye Partners reported that it has resumed full operations at its Buckeye Bahamas Hub.

Permian Child Wells May Cut Oil Recovery By 20 Percent
Posted on Thursday September 19, 2019

Oil producers drilling so-called parent-child wells in the Permian Basin are risking the loss of 15% to 20% of the crude that can ultimately be recovered from those wells by spacing them too close together.

More Haynesville Gas Headed to Gulf Coast
Posted on Thursday September 19, 2019

Enterprise Products Partners will expand and extend its Acadian natural gas pipeline system linking the Haynesville Shale to the LNG market in South Louisiana.

McDermott May Sell Lummus
Posted on Thursday September 19, 2019

McDermott is considering selling all or part of its Lummus Technology business.

Aramco Reveals Damage to Giant Oil Field
Posted on Thursday September 19, 2019

Saudi Aramco revealed damage caused by an aerial strike on its Khurais oil field last weekend.

Volatile Market Expected to Continue in 2H
Posted on Thursday September 19, 2019

The oil and gas market is expected to continue to be volatile in the second half of 2019, Petronas notes.

Texas Coast Reels from Flooding
Posted on Thursday September 19, 2019

The remnants of Tropical Storm Imelda lashed Houston and coastal Texas, inundating homes, paralyzing travelers, disrupting oil supplies and threatening hospitals and refineries.

Risk of Further Saudi Attacks High
Posted on Thursday September 19, 2019

The risk of further high-impact attacks against Saudi energy infrastructure is high, according to Verisk Maplecroft.

Wall Street Journal
Commercial News

9/22/19

WSJ.com: US Business

This Company Has Filed 10,000 Appeals to Trump's Tariffs
President Trump has said China is paying the cost of tariffs, but many U.S. importers see them as threats and are racing to seek exemptions. One such company has filed nearly two-thirds of all appeals.

Oil Companies, Pushed to Address Climate, Disagree on How
As global leaders prepare to debate action on climate change at the United Nations, big oil companies are aiming to show that they are part of the solution to a problem they helped cause.

Deere Turns to U.S. After Growth Stalls Overseas
Deere?s incoming chief executive will take charge as the struggling tractor maker switches course from its sluggish global expansion to a narrower focus on its home U.S. market.

Uber, Lyft Drivers Torn as California Law Could Reclassify Them
Some gig-economy workers who drive for Uber and Lyft see downsides ahead with California?s new law that might label them as employees instead of independent contractors.

The War for Talent in the Age of Netflix
In the battle to dominate the new entertainment landscape, Hollywood?s titans are borrowing from Netflix?s playbook, transforming how they do business with writers, producers and stars?and how money is made in entertainment.

Americans Are Saving More, and That Isn't Necessarily Good
Household saving typically rises after a recession as people pay down debt and rebuild balance sheets, then declines as they grew more optimistic?and spendthrift. But in the current expansion, it just keeps rising.

Fracking Ban, Pushed by Democratic Hopefuls, Could Dent Economy
Climate-change platforms of some Democratic presidential candidates propose a ban on fracking, a move that is popular with their supporters but could have consequences for the U.S. economy.

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