£2,800,000 Commercial Real Estate Purchase

£2,800,000 Commercial Real Estate Purchase

At Mesa Financial our specialists are experienced at finding the right commercial lending solutions, even in some of the most complex of cases.

Purchasing Commercial Real Estate

Over the last few years, commercial real estate as an asset class has taken a huge hit. This means it has been increasingly difficult to be able to borrow on commercial assets as lender criteria has tightened massively.

The client’s goal was to buy a commercial office building that had a current tenant to provide passive income. The longer term goal was to create further asset management opportunities such as residential planning options.

Challenges of buying commercial property

There are a number of factors that a lender will look for when underwriting commercial real estate. First of all is the asset income producing. Secondly who is the covenant paying the lease and what are the terms of the lease. Thirdly who is the ultimate owner of the asset and do they have the key experience to operate commercial property. In this instance Mesa Financial was able to negotiate great leverage and pricing for our client.

The result for the client:

  • Lending amount – £1.8m
  • Interest rate – 3.5% over base
  • Total LTV – 65%
  • Interest Only, with a built in amortise profile

The Mesa Financial Service

If you are looking to acquire commercial property and want to make sure you are receiving the best structured terms available then it is worth contacting the Mesa Financial team to see how we can help you. We always aim to add value to our clients by finding a deal, often bespoke, with carefully negotiated terms to suit the client’s interests.

All of this with the friendly and professional service that we have become renowned for. We look forward to working with you.

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