Financing programs · Commercial Real Estate
Commercial real estate loans for investors, owners and developers.
Commercial real estate (CRE) loans finance income-producing and owner-occupied property — for acquisitions, refinances, cash-out, renovation and new construction. They are underwritten on the property's income, value and the sponsor's strength. FOCUS Lending works with owners, investors, developers and brokers to structure each request and place it with the type of lender that best fits the property and business plan.
CRE lending at a glance
What it is
Loans secured by commercial property — multifamily, industrial, retail, office, mixed-use and other income-producing or owner-occupied real estate.
Lender types
Banks and credit unions, life insurance companies, CMBS, agency multifamily lenders, SBA 504/7(a) for owner-occupants, debt funds and private lenders.
Key metrics
Net operating income (NOI), debt service coverage ratio (DSCR = NOI ÷ total annual debt service), loan-to-value (LTV), debt yield and sponsor liquidity and experience.
Our role
We analyze historical, current and projected income and expenses, adjust for one-time and nonrecurring items before the deal goes to a lender or appraiser, then identify the lender type and structure — fixed or adjustable, construction, bridge or mezzanine — that fits your goals.
CRE financing we arrange
Investment property acquisition
Purchase financing for stabilized income-producing properties, sized on in-place NOI and the purchase price or appraised value.
Refinance and cash-out
Replacing maturing debt, adjusting to a better rate or term, or pulling equity out of a stabilized property for reinvestment.
Owner-occupied commercial real estate
Financing for businesses buying or refinancing the building they operate from, conventionally or through SBA 504/7(a).
Multifamily
Apartment financing from banks, agency and other lenders. Structures vary with property size, condition and occupancy.
Construction and development
Ground-up and major renovation loans based on budget, sponsor experience, equity and the permanent takeout plan.
Value-add and transitional
Properties that need lease-up, renovation or repositioning before they qualify for permanent debt — often a bridge loan first (see Private Bridge Lending).
Property types
- Multifamily and mixed-use
- Industrial and flex / warehouse
- Retail and neighborhood centers
- Office and medical office
- Self-storage
- Single-tenant / NNN and ground-lease properties
- Owner-occupied operating properties
- Hotels, motels and special-purpose property such as gas stations or nonprofit-occupied buildings (case by case)
Who CRE lending fits
Generally a good fit
- Investors buying or refinancing income-producing property
- Business owners buying or refinancing their own building
- Developers with construction experience, equity in the deal and a defined permanent exit
- Owners facing a loan maturity, balloon payment or rate reset
- Sponsors whose bank passed because of property type, concentration limits or market
Usually a better fit elsewhere
- Properties without enough income for permanent debt yet → see Private Bridge Lending
- Owner-occupants who would benefit from longer terms and lower down payments → see SBA Lending
- Operating business financing that is not secured by real estate → see C&I Lending
Typical CRE scenarios
Illustrative situations we commonly see. Every structure depends on the borrower, the collateral and lender approval.
Balloon maturity approaching
A property's five-year loan is maturing and the current lender won't renew on workable terms. We size a new loan on current NOI and value, and approach lenders whose criteria fit the property type.
Business buying its building
A company leasing its facility buys it. We compare a conventional commercial mortgage with an SBA 504 structure on down payment, rate type and total cost.
Multifamily acquisition
An investor buys an apartment property with in-place income. Debt is sized on the lesser of the LTV limit and the DSCR constraint, and the structure is chosen to fit the hold period.
Value-add before permanent debt
A partially vacant building needs leasing and renovation. A bridge loan funds the acquisition and improvements, and a permanent loan refinances it once the property stabilizes.
How FOCUS Lending works with you
FOCUS Lending Inc. is a commercial financing advisory and brokerage firm based in Columbus, Ohio, serving borrowers nationwide. It was founded in 2021 by Jason McBride, who has more than 20 years of experience in banking and commercial lending. We are not a direct lender. We structure each request, prepare the credit package and present it to lenders whose criteria fit the deal.
Tell us about the deal
Share the request, the use of funds and what has happened so far, including any bank decline.
Lender-style review
We review the financials and collateral the way a credit officer will and flag issues before a lender sees them.
Structure and package
We recommend the program and structure, then assemble a complete, lender-ready credit package.
Lender placement
We present the deal to lenders whose criteria fit and help you compare terms through to closing.
What to have ready
A complete package up front can help the review move efficiently. Lenders may request more depending on the deal.
- Current rent roll and copies of major leases
- Trailing 12-month operating statement (T-12) and the two prior years
- Purchase contract or current mortgage statement
- Property details: size, unit mix, year built, recent capital improvements
- Personal financial statement and real estate owned schedule for each sponsor
- For construction: plans, budget, timeline and contractor information
- For owner-occupied: the operating business's financial statements
Commercial Real Estate Lending: frequently asked questions
What is DSCR and how do commercial lenders use it?
Debt service coverage ratio (DSCR) is a property's net operating income (NOI) divided by its total annual debt service — all scheduled principal and interest payments on the loan for the year. For example, $300,000 of NOI against $240,000 of total annual debt service is a 1.25x DSCR. Lenders set minimum DSCRs by property type and loan program, and use them alongside LTV to size the loan — the lower of the two results usually determines the maximum loan amount.
How is net operating income calculated?
NOI is the property's effective gross income — rents and other income after vacancy and credit loss — minus operating expenses such as taxes, insurance, utilities, repairs and management. NOI excludes loan payments, depreciation and income taxes. Replacement reserves — an annual allowance for long-lived items such as roofs, HVAC and parking lots — are treated differently by different lenders and property types: many lenders deduct an underwritten reserve before calculating DSCR even if the owner doesn't fund one, and some also require reserves to be collected monthly. Lenders typically underwrite their own NOI, often using market vacancy, management fees and reserves even if the owner self-manages.
What is the difference between owner-occupied and investment property loans?
An owner-occupied loan finances a building the borrower's own business occupies, so repayment comes mainly from the operating company's cash flow. Those loans can qualify for SBA 504 or 7(a). An investment property loan is repaid from third-party tenant rents and is underwritten on the property's NOI, DSCR and value. The two are evaluated differently and are often placed with different lenders.
Can I get a commercial loan on a property that isn't fully leased?
Permanent lenders generally want stabilized occupancy and income. If a property is partially vacant or needs renovation, a bridge or transitional loan is often the first step: it funds the acquisition and business plan, then is refinanced into permanent debt once the property stabilizes. We plan both stages together so the permanent exit is realistic from the start.
What do lenders need to finance commercial construction?
Construction lenders look at the sponsor's development experience, the equity contributed, a detailed budget and schedule, the general contractor, the projected stabilized value and the permanent takeout plan. Expect to provide plans, a budget with contingency, a construction contract and personal financial statements. Most construction loans also require personal guarantees, including a completion guarantee.
What can I do if my commercial loan is maturing and my bank won't renew?
Start early. Gather a current rent roll, trailing 12-month operating statement and the loan documents, and get a realistic view of value and NOI. Options include a refinance with a different bank or lender type, a cash-in refinance, or a short-term bridge loan if the property needs time to improve its numbers. We help owners map out the options before the maturity date limits them.
What documents are needed for a commercial real estate loan?
Typically: rent roll, leases, trailing 12-month and prior-year operating statements, the purchase contract or current mortgage statement, property details, and each sponsor's personal financial statement and real estate owned schedule. Owner-occupied requests also need the business's financial statements and tax returns. Lenders will order third-party reports such as the appraisal and environmental review.
How is FOCUS Lending compensated?
FOCUS Lending Inc. may receive compensation from the borrower, the lender, or a combination of both, depending on the financing transaction. Applicable fees and compensation arrangements are disclosed as part of the financing process.
Related financing programs
Private Bridge Lending
Short-term financing for time-sensitive and transitional deals.
Learn more →
SBA Lending
SBA 7(a) and 504 for acquisitions, expansion and owner-occupied real estate.
Learn more →
Commercial & Industrial (C&I) Lending
Working capital, lines of credit, equipment, receivables and acquisition financing.
Learn more →
Have a deal that needs a second look?
Tell us what you're trying to finance. We'll review it with a lender's eye and tell you what's realistic.
FOCUS Lending Inc. arranges financing and does not make loans directly. All financing is subject to lender underwriting, credit approval and documentation. Programs, terms and eligibility vary by lender and change over time.