Permanent Financing for Stabilized Commercial Real Estate

Lock in long-term rates on income-producing properties through 350+ banks, CMBS conduits, credit unions, and life insurance companies. Loan amounts from $500K to $100M+.

Permanent Financing for Stabilized Properties

A commercial mortgage is the permanent financing solution for income-producing commercial real estate. Unlike bridge or construction loans that serve transitional purposes, a commercial mortgage provides long-term stability with amortization periods of 15 to 30 years and competitive fixed or adjustable rates. We place commercial mortgages through conventional banks, CMBS conduits, credit unions, life insurance companies, and portfolio lenders across every major property type. The program works for acquiring a stabilized asset, refinancing out of a bridge loan, or locking in a rate on a property held for years. The commercial mortgage market offers the most favorable long-term terms available in commercial real estate lending.

Key Terms

Loan Range: $500K to $100M+
Terms: 5 to 30 years
LTV: 75% to 80%
Rate Type: Fixed & Adjustable
Amortization: 15 to 30 years
Turnaround: 30 to 60 days typical

Who Is It For

  • Investors acquiring stabilized income-producing properties
  • Property owners refinancing short-term or maturing debt
  • Business owners purchasing owner-occupied commercial real estate
  • Portfolio holders consolidating properties under better terms
  • 1031 exchange buyers needing fast permanent financing

Common Use Cases

  • Acquisition of stabilized commercial properties
  • Refinancing bridge loans or maturing debt into permanent financing
  • Cash-out refinance to access equity for new investments
  • Rate-and-term refinance to lower monthly payments
  • Owner-occupied commercial real estate purchases

Borrower Scenarios

  • An investor purchasing a 32-unit stabilized apartment building in Austin for $4.2M, securing a 10-year fixed-rate commercial mortgage at 6.25% with 75% LTV and a 25-year amortization through a regional bank that specializes in Central Texas multifamily.
  • A property owner refinancing out of a 12-month bridge loan on a repositioned retail strip center, transitioning into a permanent commercial mortgage with a CMBS conduit at a 30-year amortization and non-recourse terms.
  • A 1031 exchange buyer acquiring a single-tenant industrial building with a 10-year NNN lease, closing a $3.8M commercial mortgage in 28 days to meet the exchange timeline, with a life insurance company lender offering a 15-year fixed rate.
  • A business owner purchasing the 12,000 sq ft office building their company has leased for a decade, using a conventional commercial mortgage with 25% down and a 20-year amortization to build equity instead of paying rent.

Why CapitalAx

Access to Multiple Permanent Lending Channels: Commercial mortgage rates and terms vary significantly between banks, CMBS conduits, credit unions, life insurance companies, and portfolio lenders. CapitalAx shops your deal across all channels simultaneously, ensuring you get the most competitive permanent financing available for your specific property and borrower profile.
Bridge-to-Permanent Transition Expertise: Many of our commercial mortgage placements involve transitioning borrowers from bridge or construction financing into permanent debt. We structure the takeout before the bridge closes, ensuring a smooth refinance with terms that were pre-negotiated rather than rushed at maturity.
Non-Recourse and Portfolio Structuring: For larger deals and experienced borrowers, non-recourse commercial mortgages protect personal assets. We know which lenders offer non-recourse at various loan sizes and how to structure portfolios of properties under favorable blanket mortgage terms.

Frequently Asked Questions

What is the minimum down payment for a commercial mortgage?

Most commercial mortgages require 20% to 25% down, though some programs offer up to 80% LTV for strong borrowers with stabilized properties. Owner-occupied properties may qualify for SBA 504 with as little as 10% down.

What types of properties qualify for a commercial mortgage?

Commercial mortgages are available for nearly every income-producing property type including multifamily apartments, office buildings, retail centers, industrial warehouses, mixed-use properties, and self-storage facilities. The property must demonstrate stable income and occupancy to qualify for permanent financing.

How does a commercial mortgage differ from a residential mortgage?

Commercial mortgages are underwritten primarily on the property's income and cash flow (DSCR), not the borrower's personal income. They typically have shorter terms (5 to 10 years with a balloon), higher rates, and require more documentation than residential loans. However, they also allow non-recourse structures on larger deals.