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
4/23/18

Croatia Delays Bidding Round for LNG Terminal Capacity to Late June
Posted on Sunday April 22, 2018

Croatia has moved to late June the second round of bidding to use capacity in a planned LNG terminal in the northern Adriatic, the company that manages the project said on Monday.

Australia's Ichthys Project to Import LNG to Cool Plant Ahead of Start-up
Posted on Sunday April 22, 2018

Japan's Inpex Corp and its partners have bought a cargo of LNG to cool their Ichthys LNG plant in Australia ahead of a potential start-up.

Colombia's Transandino Pipeline Halted After Bomb Attack
Posted on Sunday April 22, 2018

Colombia's southern Transandino pipeline was halted after a bomb attack by an illegal armed group spilled crude oil into a river, state-run oil company Ecopetrol said on Sunday.

Crude Surges to Three-Year High as Saudi-Yemen Conflict Heats Up
Posted on Sunday April 22, 2018

Futures in New York settled at their highest since December 2014.

ADNOC Sets Up Oil Trading Business to Help Find New Markets
Posted on Sunday April 22, 2018

It's part of the state-run firm's efforts to expand its international business and secure new markets.

Facing Shipping Constraints, Canada Moving Oil One Truckload at a Time
Posted on Sunday April 22, 2018

Canada's oil industry faces significant challenges, not the least of which are high production costs, remote oil fields and, perhaps most pressing, the shipping bottlenecks.

Saudi Aramco to Lift Oil-Trading Volume to 6 Million Barrels/Day
Posted on Sunday April 22, 2018

The jump in trading volume would put Saudi Aramco in the top tier of companies that buy and sell crude and refined products.

BP Gets First Chance to Sell US Pipeline Stake Since its IPO
Posted on Sunday April 22, 2018

Large holders of BP Midstream Partners LP may sell up to 10 million additional units starting Tuesday, when they become available to trade for the first time since October's IPO.

Offshore Rig Operator Borr Drilling Cuts Jobs in Texas
Posted on Sunday April 22, 2018

The filing with the Texas Workforce Commission did not provide a reason for the layoffs.

Trump's Revenge: US Oil Floods Europe, Hurting OPEC and Russia
Posted on Sunday April 22, 2018

U.S. oil is even edging out North Sea Forties, which is produced in the backyard of the continent's refineries.

Wall Street Journal
Commercial News

4/23/18

WSJ.com: Commercial Real Estate

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.

New Jersey Office Rents Near Records
Asking rents for New Jersey office space are nearing records as landlords undertake extensive renovations and fill older properties with top-notch amenities.

Brookfield Property Makes $14.8 Billion Offer to Acquire Rest of GGP
Brookfield Property Partners LP has made a $14.8 billion offer to acquire the shares of mall owner GGP Inc. that it doesn?t already own, according to people familiar with the matter.

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