Retail Shopping Center Loans

Shopping centers involve relatively large loan sizes, and the conclusion that relatively high production cost lenders must charge disproportionately high interest rates may place pressure on their borrowers. financing shopping centers Given relationship lending, it is difficult for borrowers to switch lenders after an unanticipated rise in production costs. Rather than carry a large risk on one borrower, the lender requires low loan-to-value ratios that appear onerous, but are consistent with optimal behavior.


SHOPPING CENTER LOANS of $2,000,000 or more.

* Property Type: Anchored shopping centers, strip shopping centers, shopping malls, mini malls
* Loan Amount: $2,000,000 and over
* Loan Terms: 5, 7, 10, 15 and 25 year term for shopping center loans
* Amortization period: 25 to 30 years
* Loan-to Value: Strip shopping centers loans - 70% maximum LTV-
    Anchored shopping center financing 80% maximum LTV
* Debt service coverage: Minimum 1.20x to 1.3x
* Non-Recourse - Shopping center loans are non-recourse (no borrower liability)