Franklin Street Capital offers an extensive selection of debt products for income-producing real estate across industry sectors. Our loan products include:
Fixed-rate first mortgages are available across all property types. Fixed-rate loans are used for stabilized properties with predictable cash flow. With a fixed rate, an investor can limit the risk of market fluctuations and focus primarily on the performance of the asset. Rates can be fixed from 1 to 30 years, depending on the property type.
Typically, construction loans are short-term loans used by borrowers to finance land, and soft and hard construction costs. Construction loan terms and conditions vary depending on the asset type, length of the construction process and the borrower's experience.
Franklin Street Capital Advisors can help developers find the best source, rate and term for these often critical loans. Construction loans are typically funded at higher loan-to-values because they are underwritten on a stabilized basis.
Mezzanine loans are used to increase leverage for fundamentally sound assets. Mezzanine lenders work in tandem with first-position lenders to offer higher loan-to-values with a higher interest rate to offset additional risk. Mezzanine loan terms are typically coterminous with the first position loan and increase the leverage from 5% to 20%.
BRIDGE AND REHABILITATION LOANS
A bridge loan is used when a property is in disrepair, vacant or in need of substantial upgrades. They are mostly variable rate loans, with shorter terms, and are often used to allocate funds for repairs. The stabilized value and cash flow of the property will need to support a new loan so the lender has a clear exit strategy.
Variable rate loans are usually reserved for properties in transition. Savvy investors may want to utilize variable rates in a falling interest rate environment. Franklin Street Capital Advisors can advise clients on the best time to use variable rates or not - investors who are adverse to risk should stay clear of variable rates or implement a floor and ceiling.