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
9/21/17

Glencore Strikes Multi-Year Purchase Deal With Angola LNG
Posted on Tuesday September 19, 2017

Glencore is to buy LNG supplies from Angola LNG over a multi-year period.

WoodMac: LNG Growth To Propel Oil And Gas Industry's Carbon Emissions
Posted on Tuesday September 19, 2017

LNG will be the biggest source of carbon emission growth for the world's top oil and gas companies by 2025, according to a new study by Wood Mackenzie.

Robust Asia Demand Drives ME, Russia Crude Premiums To Multi-Month Highs
Posted on Tuesday September 19, 2017

Spot premiums for Middle East and Russian crude loading in November and December have hit multi-month highs.

EIA: US Crude Inventories Up Again, Gasoline, Diesel Stocks Down
Posted on Tuesday September 19, 2017

US crude oil stockpiles jumped last week as imports and production increased, while distillate inventories fell the most in nearly six years and gasoline inventories also declined.

Dominican Republic Shuts Most Ports Ahead Of Hurricane Maria
Posted on Tuesday September 19, 2017

Dominican Republic closed most of its ports ahead of Hurricane Maria, the government says.

Anadarko To Spend $2.5B On Massive Share Buyback
Posted on Tuesday September 19, 2017

Anadarko says it would spend $2.5 billion to buy back its own stock.

Oil Up 2% Despite US Crude Build; Set For Best 3Q Since 2004
Posted on Tuesday September 19, 2017

Oil prices settled up 2% despite a rise in US crude inventories.

Advanced Communication Crucial to Quashing Protesters
Posted on Tuesday September 19, 2017

Armed with scare tactics and social media, professional pipeline protesters are requiring the energy industry to use advanced communication to silence their claims.

Petrobras CEO Says Transfer Of Rights Talks Still Ongoing
Posted on Tuesday September 19, 2017

It is unclear when talks will conclude with the government on a revaluation of stakes in offshore oil blocks known as 'Transfer of Rights' areas, a Petrobras executive says.

Two Big Words Show Why US Oil May Finally Be Turning a Corner
Posted on Tuesday September 19, 2017

Oil futures in New York have been stuck in glut mode, but that may be starting to change.

Wall Street Journal
Commercial News

9/21/17

WSJ.com: Commercial Real Estate

NYC's Pearl River Mart Will Expand to Chelsea Market
Pearl River Mart, once a casualty of skyrocketing retail rents, is planning to open another 3,500 square-foot store at Chelsea Market in Manhattan.

Office Spaces Focusing More on Communal Areas
Businesses are beginning to design offices spaces that are increasing the amount of square footage per employee when shared work settings are taken into account.

Chocolate Giant Ferrero to Look for Innovation at Cornell Tech
Ferrero, Italian manufacturer of sweets and chocolates, is setting up an innovation outpost at Cornell University?s technology campus on Roosevelt Island in New York City.

Shortage of Industrial Space on Long Island Squeezes Tenants
Long Island?s shrinking industrial space has placed expanding tenants in a tough spot, forcing them to look east to Suffolk County and off the island entirely, according to real-estate services firm JLL.

Supermarkets Face a Growing Problem: Too Much Space
A massive build-out by retailers has left the country piled up with grocery shelves as consumers shift from big weekly shopping trips to more snacking and to-go meals.

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.

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