Property Types

Apartments / Multi-family Apartments or multi-family buildings are usually the first choice for commercial lenders. In order for an apartment to be considered commercial property, it must have 5 or more units. Mixed-Use Mixed–Use properties are a combination of Multi-Family Residential Apartments and a Commercial Component, such as 2 apartments upstairs and a Retail shop or Restaurant downstairs. Office Two types of offices include: • Entire Office Building • Single Office Unit Office buildings should have a minimum of 80% occupancy and to be considered Owner Occupied, at least 51% of the total square footage of the building should be occupied or used by the owner of the building. Speak to your Account Manager about Office Unit or Office Condo financing options available. Retail Retail properties are properties that are generally open to the public, such as a business or service that caters to the public. Retail can be one or more tenants and the property is utilized for retail purposes. A free standing retail, strip center with an anchor tenant strategically placed in a shopping center so as to generate the most traffic for all of the stores located in the shopping center. An Unanchored retail center is a center which is occupied by multiple tenants of which none are anchor tenants. Single tenant investment retail property that is occupied by one tenant, either as investment property or owner occupied, but generally a single tenant retail is used by the owner. Warehouse It can be used to house or run an individual business. Self Storage Can also be called Mini-Storage, and used for personal storage for lease by consumers. Industrial These property types will have usage for industrial purposes. Such as • Manufacturing • Light Industrial • Heavy Industrial Mobile Home Parks Mobile Home parks are rated as 1 Star, 2 Star, 3 Star, 4 Star, and 5 Star. The Star ranking is based on the conditions and amenities of the park. • A 3 Star park usually has a mix of single and double wide homes that are in good condition. The park is attractive and offers some amenities. • A 4 Star mobile home park usually only has double wide homes that are skirted and in good condition. The homes will have concrete patios or raised porches. • A 5 Star mobile home park can be characterized as having deluxe accommodations, with a wide range of amenities and services. The homes are usually set back from the curb with paved streets, sidewalks, street lights and signs. The park is located in a desirable neighborhood and accessible to retail and community services. The homes are late model doublewides and modular homes in excellent condition. The mobile home park should have at least 85% occupancy and be located in desirable areas. Also, be cautious if the park has too many homes for sale (more than 20% of total pads) or more than 20% of total pads are rented homes owned by the park. Another component is RV’s and how many RV’s, if any, occupy what percentage of the MHP. Hotel Hotels are characterized as either Flag or Non-Flag. A Flag hotel is a branded, or named hotel. A non-flag hotel is usually a no name hotel/motel where the owner lives and operates the hotel/motel. When considering hotel properties, the property should have a stable operational history. A property with a history of four or less years should be scrutinized. The minimum acceptable occupancy is usually 60%. Lenders prefer franchise affiliated hotels with franchise agreements extending beyond the term of the proposed loan. Special Purpose These property types are unique and generally have one single use for one specific type of business only and financing these can be difficult. They may include gas stations, oil change facilities, and all other special purpose properties.