Permanent Financing
Long-Term Solutions for Stabilized Assets
Permanent financing is long-term debt placed on stabilized, income-producing commercial real estate. It is the appropriate structure once a property has achieved consistent occupancy and cash flow, and the sponsor’s goal shifts from execution to hold, optimization, and yield.
The right permanent loan matches the property’s income profile, the sponsor’s hold strategy, and the interest rate environment. Capital sources for permanent financing include life insurance companies, banks, agency lenders for multifamily, and CMBS conduits, each with different pricing, leverage, and covenant structures suited to different asset types and business plans.
Key Highlights
Loan Size: $5 million to $50+ million
Loan-to-Value (LTV): Up to 75%
Loan Term: 5, 7, or 10 years
Interest Rate: Fixed or floating rates available
Recourse: Non-recourse and recourse options
Amortization: Typically 25 to 30 years
Property Types We Finance
Multifamily (market-rate, affordable, or mixed-income)
Office (urban, suburban, or corporate campuses)
Industrial (warehouse, distribution, or manufacturing)
Retail (grocery-anchored centers, strip malls)
Hospitality (hotels, resorts, and service-oriented properties)
Specialized assets (data centers, self-storage, etc.)
When to Use Permanent Financing
Refinancing an existing loan on a stabilized asset
Locking in long-term, low-rate financing on newly acquired properties
Stabilizing and holding income-producing assets
Cash-out refinancing for expansion or reinvestment purposes
Transitioning from a short-term bridge loan to permanent financing
How Lenders Evaluate Permanent Financing Requests
Permanent financing underwriting is centered on the property’s stabilized income and its ability to support long-term debt service. Lenders analyze net operating income, occupancy levels, lease terms, tenant credit quality, and the property’s position within its market. Unlike bridge or construction lending, where the business plan is the primary underwriting driver, permanent financing is underwritten against what the property is producing today rather than what it is projected to produce in the future.
Debt service coverage ratio (DSCR) and loan-to-value are the two primary sizing constraints in permanent financing. Lenders require that in-place income comfortably covers debt service at the proposed loan amount, and that the loan does not exceed a defined percentage of the property’s appraised value. Both thresholds vary by lender type and asset class, with life companies and agencies generally applying more conservative standards than CMBS conduits or bank lenders.
Sponsor strength matters in permanent financing but is secondary to property performance. A well-stabilized asset with strong in-place income can often secure financing even when the sponsor’s track record is limited. Conversely, a property with declining occupancy or near-term lease rollover will face lender scrutiny regardless of sponsor quality. Preparing a complete and accurate operating history, including trailing income statements and a current rent roll, is the most important step a borrower can take before approaching permanent lenders.
Our Approach
Permanent financing is about stability and long-term growth. At i95 Capital, we assess each asset’s cash flow, location, and market conditions to secure a financing solution that suits your business goals. Whether refinancing an existing property or securing a fixed-rate, long-term solution, i95 Capital guides the process from lender selection through closing to secure the most competitive capital.
Sample Use Cases
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Refinancing a fully stabilized multifamily property with a 70% LTV
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Long-term permanent financing for a single-tenant industrial asset
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Converting a successful retail development from short-term bridge financing to permanent debt
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Permanent loan for an office complex with steady cash flow and high occupancy
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Refinancing a newly completed mixed-use project with attractive terms
Why Work with i95 Capital?
Access to a broad array of permanent lenders, including CMBS, life companies, and agencies
Expertise in underwriting for long-term asset performance
Transparent, predictable financing options with flexible terms
Ability to structure debt with minimal sponsor recourse
Secure Long-Term Capital for Your Property
For stabilized assets requiring long-term capital, i95 Capital structures permanent financing solutions tailored to the property’s income profile and the sponsor’s hold strategy.
