Permanent Senior Debt For Commercial Real Estate

Commercial Real Estate Loans, Inc. understands the need for long-term capital, leveraged correctly, so as to improve levered returns while driving down interest costs, and increasing cash-flow by maximizing amortizations. Life companies offer the most aggressive permanent financing but they will look for Class A commercial properties in top MSAs. They will also offer lower leverage and shorter amortizations, but the longest fixed rate periods with most loans being fully amortizing. CMBS loans start at just $2,000,000 and up, and will offer the highest leverage (up to 75%), with the longest amortizations (up to 30 years), but their spreads will cause for higher rates than life company loans due to liquidity issues in the secondary market. Banks will offer a good blend between the two commercial loan options. For larger transactions, $25,000,000 and up, everyone will be more aggressive and pension funds and large intuitions will become players as well. 

Commercial Mortgage Terms For Perm Financing

  • Minimum Loan: $1MM.
  • Term: Up to 10 Years.
  • Leverage: Up to 75% LTV.
  • Amortization: 20 - 30 Years.
  • Recourse: Non-Recourse options available.
  • Prepayment: Defeasance, Step-Down, or Yield Maintenance.

Lenders Available For Permanent Financing

  • Life Companies
  • Regional & National Banks
  • Institutions
  • Pensions Funds
  • Private Debt Funds

Permanent Financing PROs

  • Lowest Rates
  • Longest Terms
  • Best Leverage
  • Longest Amortizations
  • Fixed Rates


  • Call Protection (Expensive Prepayment Penalties)
  • Limited Ability To Recapitalize (With Sale Or Refinance)