About Commercial Real Estate Loans
Commercial real estate loans provide specialized financing for income-producing properties including office buildings, retail centers, industrial facilities, multifamily apartment buildings, and mixed-use developments throughout San Francisco's dynamic commercial market. These hard money loans address acquisition, refinancing, and improvement needs for commercial properties that may not qualify for conventional bank financing due to property condition, occupancy levels, borrower profile, or transaction timing requirements. In San Francisco's competitive commercial environment, hard money commercial loans offer the speed and flexibility necessary to capitalize on time-sensitive opportunities.
The San Francisco commercial real estate landscape encompasses diverse property types ranging from historic retail buildings in Union Square to modern office towers in SOMA, from industrial warehouses in the Bayview to multifamily properties throughout residential neighborhoods. Each property category presents unique financing considerations involving tenant mix, lease structures, market positioning, and value-add potential. Hard money commercial loans evaluate these factors through an asset-based lens, focusing on property cash flow potential and collateral value rather than rigid conventional underwriting criteria.
Commercial real estate investors face increasingly complex financing challenges as traditional lenders tighten requirements, extend processing timelines, and reduce appetite for properties requiring repositioning or improvement. Hard money commercial loans fill this gap, providing capital for acquisition of distressed or underperforming assets, bridge financing during lease-up periods, funding for renovation and repositioning projects, and refinancing of maturing debt. These loans enable investors to execute value-add strategies that enhance property performance and create long-term wealth in one of the world's most valuable commercial real estate markets.
Hard Money Lender San Francisco provides commercial real estate loans for Bay Area sponsors who need quick, decisive execution without conventional bank delay.
We structure each loan around collateral profile, timeline, and exit strategy to support your business plan from acquisition through disposition or refinance.
Frequently Asked Questions
What types of commercial properties do you finance in San Francisco?
We provide financing for all major commercial property types throughout San Francisco including multifamily apartment buildings (5+ units), office buildings, retail centers and storefronts, industrial warehouses, mixed-use properties, hospitality assets, and specialty properties. We can accommodate both stabilized income-producing properties and value-add opportunities requiring operational improvements or physical upgrades. Our underwriting evaluates each property based on its specific income potential, location characteristics, and market positioning rather than applying rigid property-type restrictions. Whether you're acquiring a boutique retail building in Hayes Valley, a multifamily property in the Richmond District, or an industrial asset in the Bayview, we can structure financing appropriate to the property type and investment strategy.
What loan-to-value ratios are available for commercial real estate loans?
Our commercial real estate loans typically offer loan-to-value ratios ranging from 65% to 75% depending on property type, location, occupancy, and cash flow stability. Stabilized multifamily properties in prime locations may qualify for up to 75% LTV, while office and retail properties with tenant concentration risk or shorter lease terms may be limited to 65-70%. Value-add properties requiring significant improvements or lease-up may have lower initial LTVs that can increase as business plan milestones are achieved. Cross-collateralization using additional properties as collateral can enable higher effective leverage for qualified borrowers. We evaluate each transaction individually, structuring LTV parameters that reflect property-specific risk profiles while providing the capital necessary to execute your investment strategy.
How do you handle rent-controlled multifamily properties?
We actively finance rent-controlled multifamily properties throughout San Francisco, recognizing these assets represent significant opportunities despite regulatory complexity. Our underwriting accounts for rent control impacts on revenue growth potential, vacancy loss risks, and operating expense recovery limitations. We analyze current rent rolls against market rates to understand revenue upside potential, evaluate tenant turnover history to project natural vacancy opportunities, and assess operating expense burdens that cannot be passed through to tenants. Loan terms and leverage ratios reflect these property-specific considerations, with potentially lower LTVs or higher debt service coverage requirements for heavily regulated properties. We work with borrowers experienced in San Francisco's rent control environment who understand regulatory compliance requirements and have demonstrated ability to manage these assets profitably within regulatory constraints.
What documentation is required for commercial real estate loan approval?
Commercial real estate loan documentation requirements vary based on transaction complexity and property type, but typically include: property financial statements (rent rolls, operating statements, lease abstracts), borrower financial information (personal financial statements, real estate owned schedules, liquidity verification), business plan or investment thesis, purchase contract or refinancing terms, property condition and environmental assessments, and entity formation documents for borrowing entities. For value-add projects, we require detailed improvement budgets, contractor qualifications, and timeline projections. While our documentation requirements are comprehensive, we focus on information directly relevant to collateral evaluation and business plan feasibility rather than extraneous paperwork. Our team guides borrowers through documentation requirements and can accommodate situations where certain information may be unavailable or delayed.
Can I get a commercial loan if the property has vacancy or cash flow challenges?
Yes, we regularly provide financing for commercial properties experiencing vacancy or cash flow challenges that conventional lenders decline. Our underwriting evaluates property potential and business plan feasibility rather than requiring current stabilization. For properties with vacancy issues, we analyze market demand, competitive positioning, and leasing strategies to assess value recovery potential. We can structure interest reserve accounts, seasonal payment arrangements, or initial interest-only periods to accommodate cash flow constraints during stabilization. Value-add loans specifically target properties requiring operational improvements, physical upgrades, or lease-up to achieve stabilized performance. While these loans may carry higher interest rates or lower leverage reflecting risk profiles, they enable investors to acquire and reposition challenged assets that offer significant return potential upon successful execution of improvement strategies.
