Mixed-use real estate loans are financing solutions designed for properties that serve both residential and commercial purposes within a single building or complex. These properties often combine features such as residential apartments or condos, retail spaces, office units, or other commercial elements. Here’s information about mixed-use real estate loans, including typical loan amounts and terms:
1. Loan Purpose: Mixed-use real estate loans are exclusively used for financing the acquisition, development, or renovation of mixed-use properties. These properties can include residential apartments or condos combined with retail stores, offices, or other commercial spaces.
2. Loan Amounts: The typical loan amounts for mixed-use real estate loans can vary significantly based on the location, size, and complexity of the property, as well as the borrower’s financial qualifications. As a general guideline:
- Smaller mixed-use properties might secure loans ranging from $100,000 to $1 million or more.
- Larger and more complex mixed-use properties, especially in urban areas, can secure loans ranging from $1 million to several million dollars.
3. Loan Terms: The terms for mixed-use real estate loans can be flexible to accommodate the property’s unique characteristics and the borrower’s needs. Typically, loan terms range from:
- Intermediate-Term: These loans have terms of three to seven years, ideal for smaller mixed-use properties.
- Long-Term: Long-term loans may have terms ranging from seven to 25 years, suitable for larger and more complex mixed-use properties.
4. Collateral and Personal Guarantees: Lenders may require the mixed-use property itself as collateral, and personal guarantees from the borrower or property owner may be necessary.
5. Interest Rates: Interest rates for mixed-use real estate loans can vary based on the lender’s policies and the specifics of the loan agreement. They may be fixed or variable.
Mixed-use real estate loans are crucial for investors and property developers looking to finance the acquisition, development, or improvement of mixed-use properties. The loan terms and amounts will be tailored to the property’s size, location, and intended use. To explore mixed-use real estate financing and determine the most suitable loan for your specific property needs, please contact Obelisco Advisers experts for personalized guidance and support.