Permanent financing provides long-term, stabilized debt for commercial properties. Track market rates, lending programs, and execution strategies.
Permanent financing is long-term debt (5 to 30 years) secured by stabilized commercial properties with consistent cash flow. It replaces construction or bridge loans after a property achieves target occupancy. Permanent loans are available from life insurance companies, banks, CMBS conduits, and agency lenders, each offering different terms, leverage, and pricing.
CMBS loans offer higher leverage (up to 75% LTV) with standardized terms, non-recourse execution, and assumability, but have restrictive prepayment provisions (defeasance or yield maintenance). Life company loans offer lower leverage (55-65% LTV) but with more competitive rates, flexible prepayment, and relationship-based servicing. The right choice depends on leverage needs, hold period, and prepayment flexibility requirements.