Construction Loan Financing

Whether it is an office building, retail centre, industrial/warehouse property or multi-unit residential development (rental or condominium), we can arrange financing for land or property acquisition, construction and inventory financing.

Interim construction loans are funded on a cost-to-complete basis in the area of 60% – 85% of total budgeted costs, and inventory loans are usually done at 55% – 75% of the completed value. Some of the myriad of critical factors negotiated for each transaction can include fixed or floating rates, interest only, duration of term, financial covenants and form of recourse. Equity requirements and loan pricing are directly related to levels of preleasing and quality of tenant covenants for income properties, and presales as a percentage of liquidation point for condominium projects.