Conventional Loans

Construction loans are the backbone of the real estate industry, with the majority of commercial real estate developments driven by debt and equity financing. Depending on clients' risk preferences and balance sheet strength, construction loans can vary significantly in complexity. CapNorth has a proven track record in structuring complex capital stacks to minimize the borrower's equity requirement at closing and reduce the cost of capital throughout the loan term.

Bridge loans provide short-term financial support to cover a borrower’s needs during the critical period between immediate borrowing requirements and the securing of permanent financing. These loans can be either fixed or floating rate. CapNorth specializes in executing bridge loans efficiently, both in terms of time and cost.

Permanent financing entails granting a long-term mortgage to a borrower to replace construction loans, bridge loans, or refinance maturing permanent loans. These loans generally offer a significantly lower cost of capital and are provided by entities such as Fannie Mae, Freddie Mac, HUD, CMBS, pension funds, insurance companies, banks, and credit unions. Depending on the borrower’s goals, permanent financing can reset and reduce payments or allow the borrower to readjust their equity position in the property by pulling out cash for other opportunities. Understanding the borrower's strategy makes the permanent loan stage a powerful tool for growing a portfolio of assets.