Permanent Financing

Permanent Senior Debt for Commercial Real Estate

At Blue Fox Capital, we know that leveraging long-term capital correctly can significantly enhance levered returns. We also understand the need to minimize interest costs and maximize cash flow through optimized amortizations.

When it comes to permanent financing, the details make all the difference.

2024 Commercial Mortgage Terms for Permanent Financing:

• Minimum Loan: $1 million
• Term: Up to 10 years
• Leverage: Up to 75% LTV
• Amortization: 20 to 30 years
• Recourse: Non-recourse options available
• Prepayment: Defeasance, step-down, or yield maintenance
• Uses: Typically for acquiring or refinancing commercial real estate

Lenders offering permanent financing include:

• Life companies
• National and regional banks
• Institutional lenders
• Pension funds
• Private debt funds

Advantages:

• Lowest rates
• Longest terms
• Best leverage
• Longest amortizations
• Fixed rates

Disadvantages:

• Call protection (expensive prepayment penalties)
• Limited ability to recapitalize (with sale or refinance)