Commercial Real Estate
Deal Examples

The Challenge

The property was 81% occupied at the time of purchase. Fannie Mae and Freddie Mac Small Balance programs require 90%+ occupancy for full eligibility. The buyer — an experienced multi-family investor — was being turned away by every bank they approached because the asset didn't meet agency stabilization thresholds.

The Structure

Dan placed the deal with a portfolio lender offering a 5-year fixed / 25-year amortization product at 72% LTV. The term sheet included a 6-month interest reserve escrowed at closing to give the sponsor runway to reach stabilization without payment pressure.

Key Numbers

The Outcome

Occupancy reached 94% by month 5. The sponsor refinanced to Freddie Mac Small Balance at improved terms, with a cash-out that returned a portion of the interest reserve. The portfolio lender bridge created a path to permanent agency financing that the sponsor couldn't access directly.

The Challenge

The borrower had been paying $4,900/month in rent and wanted to buy their building. They had 10% available for down payment but lacked the 25-30% required by conventional commercial lenders. The building's second floor was leased to a separate tenant, which complicated SBA 504 owner-occupancy calculations.

The Structure

SBA 504 structure with the first mortgage covering 50% (bank), SBA debenture covering 40%, and borrower bringing 10% equity. Dan worked with the SBA lender on the owner-occupancy calculation: the restaurant occupied 65% of gross leasable area, satisfying the 51% owner-occupancy threshold. The second-floor tenant income was used to improve the overall DSCR and support loan approval.

Key Numbers

The Outcome

Borrower closed with 10% down and now owns the building. The monthly cost is higher than rent, but the borrower is building equity and eliminating long-term lease uncertainty — particularly valuable in a market where commercial rents have increased year-over-year. The upstairs tenant's rent partially offsets the payment increase.

The Challenge

The property was acquired at a Kern County auction at a discount to market value. It had 50% occupancy, significant deferred maintenance, and required immediate renovation. Conventional lenders don't finance auction purchases, and the property condition ruled out agency. The sponsor needed funded capital in under 10 days.

The Structure

Hard money bridge funded in 8 days at 65% of the after-repair value ($1,050,000 ARV). The 12-month bridge term gave the sponsor time to renovate all units, bring occupancy to 100%, and establish a 3-month rent roll. On exit, Dan refinanced the property into a 30-year DSCR loan at 75% of stabilized value.

Key Numbers

The Outcome

The sponsor closed the bridge, renovated all 8 units, leased to 100% occupancy, and refinanced to permanent financing. The DSCR exit returned the majority of the renovation capital. Net equity capture from distressed acquisition to stabilized value: substantial. The hard money was the bridge, not the destination.

The Challenge

The building was 60% owner-occupied (the buyer's logistics business) and 40% leased to a separate tenant. SBA 504 requires 51%+ owner-occupancy, which technically qualified, but the SBA lender was uncomfortable with the tenant representing a meaningful portion of NOI — if the tenant left, DSCR would fall below threshold. The sponsor was also unwilling to tie up the 10% SBA reserve.

The Structure

Conventional commercial at 65% LTV, 20-year amortization, 5-year balloon. DSCR was calculated using both the owner's imputed rent-equivalent (market rent for equivalent space) and the tenant's in-place lease income. Total NOI coverage was 1.38x. The 35% down payment was partly funded by the sale of a smaller property the sponsor had been holding.

Key Numbers

The Outcome

Deal closed conventionally with a lender who understood owner-occupant imputed rent calculations. The 5-year balloon gives the sponsor refinance flexibility as the logistics business grows and the building potentially transitions to 100% owner-occupied. NE Bakersfield industrial demand has supported values through the term.

The Challenge

Gas stations are specialty properties. Most conventional commercial lenders cap LTV at 50-55% due to environmental risk, and few banks in Bakersfield will touch them at all. The owner had existing high-rate debt from a 2018 acquisition and wanted to refinance to a lower rate and access some equity. The complication: the properties were on two separate parcels under two different LLC entities.

The Structure

Cross-collateralized portfolio refinance with a commercial private lender specializing in petroleum retail properties. 60% LTV on combined appraised value. The entity structure was accommodated by the lender's commercial underwriting team, unlike typical residential-style DSCR products. Rate and terms were meaningfully better than the existing 2018 debt.

Key Numbers

The Outcome

Existing debt retired, rate improved, $280K returned for capital improvements including canopy and equipment upgrades. Using a specialty petroleum lender in Dan's network rather than a local bank was the key — local banks would not cross-collateralize across separate entities, and their LTV restrictions would have yielded no cash-out.

The Challenge

First-time development sponsor with prior multi-family ownership experience but no ground-up track record. Most construction lenders require demonstrated development experience. The sponsor also needed the construction loan and permanent financing to be coordinated upfront — they could not afford to close construction financing, build, and then go shopping for permanent financing in an uncertain rate environment.

The Structure

Construction loan with a 14-month term and draw schedule aligned with city permit milestones. 20% sponsor equity required at closing. The key structure: a binding bridge-to-permanent commitment was locked at construction loan closing, giving the sponsor a defined rate and terms for the permanent refinance upon stabilization — eliminating permanent financing rate risk during construction.

Key Numbers

The Outcome

Construction completed at month 13. Permanent financing converted at the locked terms. Self-storage demand in Tehachapi — driven by population growth and limited competing supply — supported strong lease-up to 91% occupancy within 6 months of opening. The locked permanent commitment was the most valuable structural element: the sponsor was insulated from any rate movement during the construction period.