Insurance Company Capital for Institutional Quality Assets
Life insurance company loans sit at the top of the commercial financing market. MetLife, Prudential, New York Life, Northwestern Mutual, and dozens of regional carriers pour billions into commercial mortgages every year as part of their long term investment books. They are lending policyholder money over multi decade horizons, which is exactly why they can offer the lowest fixed rates around, terms that generally run 10 to 30 years, and prepayment flexibility that CMBS and agency lenders almost never match. Selectivity is the price of admission. Leverage stays lower, usually 55% to 70% LTV, the properties need to be institutional quality in primary or secondary markets, and both the asset and the sponsor get underwritten conservatively. We hold relationships with life company correspondents and direct lending desks to place loans for borrowers who actually meet that bar.
Deal Structure at a Glance
Who Is This For?
- Owners of institutional quality commercial properties
- Borrowers seeking the lowest available fixed rates
- Long term holders who prioritize rate certainty over flexibility
- Investors with strong net worth and commercial real estate experience
- Property owners with stabilized, well located assets in strong markets
Common Use Cases
- Permanent financing for Class A office, industrial, and retail
- Long term fixed rate financing for trophy multifamily
- Refinancing CMBS or bank debt into lower rate life company terms
- Financing for single tenant NNN properties with investment grade tenants
- Portfolio loans for institutional quality property collections
Borrower Scenarios
Examples of how this financing can be used.
A private equity firm placing a life company loan on a newly built 240 unit Class A apartment community, locking in a 15 year fixed rate 50 basis points below the best CMBS quote, with a flexible prepayment structure that allowed exit after year 7 without defeasance.
An industrial investor refinancing a 400,000 sq ft distribution center leased to an investment grade tenant on a 12 year NNN lease, obtaining a conservatively leveraged life company loan with a 20 year term matching the lease duration, at the lowest fixed rate available in the market.
A retail property owner with a grocery anchored shopping center placing a life company loan with a 25 year amortization and 10 year fixed rate, replacing a maturing bank loan that required annual renewals and personal recourse, gaining both rate improvement and liability protection.
A family office refinancing a portfolio of three Class B+ office buildings into a single life company facility, consolidating three separate bank relationships into one loan with a single payment, uniform terms, and a blended rate 40 basis points below the weighted average of the existing debt.
Why Work With CapitalAx
We help borrowers organize life company loans requests and compare lending sources that may fit the transaction.
Direct Access to Life Company Lending Desks
Most life company loans move through approved correspondents or direct lending teams that never deal with the public. Our correspondent relationships open that door for borrowers who could not reach this capital on their own, and they put rate quotes and term sheets from several carriers in competition for your deal.
Prepayment Flexibility Negotiation
Where CMBS locks you into defeasance and agencies into yield maintenance, life company prepayment is often negotiable right at origination. We push for declining prepayment schedules, open windows, and par call provisions so you can sell or refinance later without getting hit by a punitive penalty.
Conservative Leverage Optimization
Lower leverage is the cost of that market best rate. To get you higher total proceeds without giving up the rate, we pair the low leverage life company first mortgage with mezzanine or preferred equity, stacking the capital so the attractive first mortgage stays intact underneath it.
Tools & Calculators
Commercial Real Estate Cap Rate Calculator
Calculate commercial real estate cap rate from NOI and property value to evaluate investment returns.
Commercial Property Value Calculator
Use a commercial property valuation calculator to estimate income based value from NOI and cap rate.
Commercial Refinance Proceeds Calculator
Compare modeled loan limits and subtract payoff and costs to estimate cash out or an equity shortfall.
Property Financing Stress Test
Compare NOI, DSCR and supportable debt under changes in collected rent, expenses and borrowing rate.
Related Loan Programs
Related Property Types
Looking for a different financing structure? Browse all loan programs.