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.

 

Wall Street Journal
Commercial News

5/29/16

WSJ.com: Commercial Real Estate

New York REIT, JBG Cos. Agree to Merge
New York REIT Inc. and JBG Cos. have agreed to merge, forming an $8.4 billion real estate trust focused on the New York City and Washington, D.C., markets.

Beth Israel to Close Hospital, Open Smaller Facility
Downsizing is part of a $550 million plan to respond to changes in health care that the New York City property?s owner says has led to a decline in hospitalizations.

Soho Project Gets Financing
Joint venture of Madison Capital and Vornado Realty Trust is moving ahead on the construction of a six-story, mixed-use building.

An Oceanfront Home With Room Service
The owners of Gurney?s Montauk Resort owners are offering 15 oceanfront homes at prices from nearly $5 million to $12 million. All offer hotel amenities.

One of Honolulu's Last Big Coastal Plots Gets Developed
Howard Hughes Corp. is redeveloping 60 acres between downtown Honolulu and Waikiki, with plans to transform a low-density shopping and industrial area to residential and park space with potentially more than 20 towers.

Property Debt Mounts Up in U.K.
A rise in U.K. commercial real-estate lending last year has pushed the total amount of outstanding property debt higher for the first time since 2008.

The Next Big Housing Short: a $6.5 Billion Bet Against Australia's Banks
The funds are placing a large number of ?short? wagers on Australia?s biggest banks, among the world?s most profitable, suggesting the lenders might be headed for trouble.

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