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Commercial Real Estate Financing Insights and More
How NOI Affects Loan Terms and Property Valuation
In commercial real estate, few numbers carry more weight than net operating income, or NOI. Whether you’re financing an acquisition, seeking a refinance, or trying to determine a property’s value, NOI is one of the first figures lenders and investors look at. But how exactly does it influence loan terms and valuation? Let’s break it
How Rising Interest Rates Affect CRE Financing
The commercial real estate market is no stranger to economic cycles. But in recent years, rising interest rates have forced many investors and developers to take a closer look at how they approach financing. What was once a straightforward capital stack now requires more planning, more flexibility, and in some cases, a shift in strategy
Why Debt Yield Matters in CRE Financing
When it comes to commercial real estate financing, a lot of attention gets paid to metrics like loan-to-value (LTV) and debt service coverage ratio (DSCR). But there’s another key figure that lenders increasingly rely on, especially in uncertain markets: debt yield. If you’re an investor or developer, understanding this metric can give you a clearer
When Borrowers Should Use CRE Financing Brokers
In commercial real estate, borrowers have two main paths to secure financing: going directly to lenders or working with a commercial mortgage broker. While some transactions are simple enough to be handled one-on-one with a bank or lender, many real estate investors and developers choose to work with brokers for various strategic reasons. Below, we
Mezzanine vs. Preferred vs. Common Equity
Capital stacks in commercial real estate financing often go beyond traditional senior loans. To close funding gaps or enhance returns, developers and investors frequently turn to mezzanine debt, preferred equity, or common equity. Each of these sources plays a distinct role, with varying implications for control, repayment priority, and risk exposure. Let’s break down how
