Permanent Financing for Stabilized Commercial Real Estate

Permanent Financing for Stabilized Commercial Real Estate

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

Permanent Financing for Stabilized Commercial Real Estate

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

Permanent Financing for Stabilized Properties

A commercial mortgage is the permanent debt that sits under an income-producing property once it stabilizes. Bridge and construction loans are meant to be temporary. This is the loan you refinance into and hold. Amortization generally runs 15 to 30 years, with fixed or adjustable rates depending on the lender and the deal. We place these through conventional banks, CMBS conduits, credit unions, life insurance companies, and portfolio lenders, across every major property type. Buying a stabilized asset, refinancing out of a bridge, or locking a rate on something you have owned for years all fit here. When it comes to long-term terms in commercial real estate, this is where the best pricing lives.

Key Terms

Loan Range: Typically $500K to $100M+
Terms: Generally 5 to 30 years
LTV: Generally 75% to 80%
Rate Type: Fixed & Adjustable
Amortization: Generally 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, securing a 10-year fixed-rate commercial mortgage with a long 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 commercial mortgage on a compressed schedule 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 a standard down payment and a 20-year amortization to build equity instead of paying rent.

Why CapitalAx

Access to Multiple Permanent Lending Channels: Pricing on the same deal can swing widely from a bank to a CMBS desk to a life company or credit union. We put your loan in front of all of those channels at once, then bring back the strongest permanent terms for your property and your profile rather than whatever one lender happens to quote.
Bridge-to-Permanent Transition Expertise: A large share of the permanent loans we place are takeouts of bridge or construction debt. We line up that permanent financing before the short-term loan even closes, so the refinance is negotiated on your terms up front instead of scrambled together as the balloon comes due.
Non-Recourse and Portfolio Structuring: On bigger deals with experienced sponsors, non-recourse financing keeps your personal assets out of the equation. We track which lenders go non-recourse at which loan sizes, and how to bundle several properties under one blanket mortgage on favorable terms.

Related Loan Programs

Frequently Asked Questions

What is the minimum down payment for a commercial mortgage?

Plan on 20% to 25% down for most commercial mortgages. Strong borrowers with stabilized properties can generally reach up to 80% LTV on certain programs. If you occupy the building yourself, SBA 504 can get you in with as little as 10% down. Every deal is underwritten on its own merits. Actual leverage and down payment requirements depend on the property, the market, and the lender.

What types of properties qualify for a commercial mortgage?

Almost any income-producing property works: multifamily apartments, office buildings, retail centers, industrial warehouses, mixed-use, and self-storage among them. The one requirement that matters is performance. The property needs stable income and solid occupancy before a lender will write permanent debt against it.

How does a commercial mortgage differ from a residential mortgage?

The underwriting is the biggest difference. A commercial mortgage is judged on the property's income and cash flow (DSCR), not your personal paycheck. Expect shorter terms, often 5 to 10 years with a balloon, along with higher rates and heavier documentation than a home loan. The upside is that larger deals can be structured non-recourse, which a residential mortgage never offers.