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Retail · Industrial · Net Lease · Flex & IOS

Retail and Industrial

$2M – $400M Bridge, Value-Add and Acquisition To 75 percent of value and 80 percent of cost from SOFR plus 250, twelve to thirty-six months.
To 35 Years Permanent and Fixed Rate Fully amortizing first mortgage priced over the matching Treasury.
These are the two asset classes with the deepest capital behind them right now. Permanent debt on industrial is being quoted 162 basis points over the matching Treasury and retail 176, against 220 for office on the same leverage. Of the partners we place through, more carry retail and industrial than any other property type, and most carry both.
Program One

Bridge and Value-Add
Twelve To Thirty-Six Months

Acquisition, refinance and repositioning on income-producing retail and industrial. The loan is sized off in-place rent with the lease-up and the capital budget funded alongside it, so a half-empty building or a center losing an anchor is underwritten on what it will earn rather than only on what it earns today.

Debt fund, balance sheet and private credit partners
$2M–$400MLoan Size
75%Loan To Value
85%+With Mezzanine
12–36 MoInterest Only
SOFR+250From

What The Market Is QuotingLead program first

SizeLeverage and coveragePricingTerm
$15M–$150M+75 percent of value, and 85 percent and above with mezzanine behind the senior. Non-recourse to key principals with customary carve-outs. Stabilized or transitional, with retail and industrial first on the eligible list.SOFR, rate cap required2–3 yr + ext
$20M–$400M75 percent of value and cost on first mortgage and mezzanine together. Existing coverage below 1.00x is accepted, which is the line that decides a center that just lost an anchor.Market floating, 1.00% fee2–10 yr
$10M–$275M+Under 75 percent of value, higher with mezzanine deal by deal. Exit fee of about a point, waived by some partners when they refinance the loan themselves.SOFR + 250 floor1–3 yr + ext
$5M–$75M75 percent of value. Coverage down to 0.50x is workable where an interest reserve carries the payment through the business plan.SOFR + 325–70012–36 mo
$2M–$40M70 percent of value and 70 percent of cost, plus up to 100 percent of the tenant improvement, leasing commission and capital budget. No minimum debt yield required.SOFR + 400–60012–36 mo
The first line is the one to read. That partner publishes retail at the front of its eligible list rather than as a selective exception, lends against stabilized and transitional property out of the same program, and carries a companion fixed rate book so the bridge and the takeout can be quoted by the same house. A rate cap is required on the floating product, and the borrower has to be a single purpose entity. The tiers below it compete on size and on coverage, which is why the same building draws a different quote at $8,000,000 than it does at $80,000,000.

How Each Loan Is Sized

AssetWhat gets financedTermLTV
Grocery-anchored and neighborhood centersAcquisition, refinance and repositioning where the anchor carries the center and the small-shop space is the upside. Anchor lease term and sales reporting drive the sizing.12–36 moto 75%
Unanchored strip and small-shop retailMulti-tenant strip without a national anchor, including centers being re-tenanted after a vacancy. Priced wider than anchored product and sized off in-place rent rather than pro forma.12–36 moto 70%
Single-tenant and net leaseFreestanding net-leased buildings and pad sites, acquisition or cash-out. Credit of the tenant and remaining lease term set the leverage, and a lease shorter than the loan is the question that gets asked first.12–36 moto 75%
Power, lifestyle and outlet centersLarger formats including junior anchor and big-box reconfiguration, and centers taking in experiential or medical tenants in place of departed retail.18–36 moto 70%
Bulk distribution and last-mileWarehouse and distribution from regional bulk down to infill last-mile, including vacant buildings taken on speculation where the market rent supports the basis.12–36 moto 75%
Small-bay and multi-tenant flexMulti-tenant industrial and flex with short average lease term, where the rent roll rolls continuously and the value-add is mark to market.12–36 moto 75%
Cold storage and food gradeTemperature-controlled and food-grade facilities, including conversion of dry warehouse to cold. Specialized fit-out is underwritten separately from the shell.18–36 moto 70%
Industrial outdoor storageIOS and truck terminal, container and equipment yards, and laydown ground. Sized off the income the yard produces rather than the building, because frequently there is not one.12–36 moto 70%
Light manufacturing, R&D and life scienceOwner-user and leased manufacturing, research and lab space. Tenant improvement and lab conversion cost is funded alongside the acquisition where the lease supports it.18–36 moto 70%
Every program. First mortgage, interest only through the term, with an interest reserve funded at closing where the property does not yet carry the payment. Non-recourse to key principals with customary carve-outs is available on most of this product, and a partial guaranty buys leverage where it is not. Capital expenditure, tenant improvement and leasing commission dollars are funded as a future advance against inspected work rather than out of the borrower's pocket, and on the small-balance tier that advance reaches the full budget.
Nationwide, including secondary and tertiary markets. Leverage moves with the market rather than the asset: the same building supports materially more debt in a top-fifty metro than it does in a town of twenty thousand, and the loan is sized accordingly.

What Qualifies

  • Income producing or credibly becoming so. A vacant building qualifies where the business plan and the market rent support the basis
  • Coverage below 1.00x is financeable, and down to 0.50x where an interest reserve carries the payment
  • Entity on title, a single purpose LLC or corporation, business purpose only
  • Leverage above 75 percent is reachable with mezzanine or preferred equity behind the senior, to 85 percent and above
  • Two to four weeks is a realistic closing on the private tiers once title and the rent roll are clean
Get A Term Sheet →
Program Two

Permanent and Fixed
Five To Thirty-Five Years

Long-term debt on a stabilized center or building, priced over swaps or the matching Treasury and tested on coverage rather than on a business plan. This is the exit the bridge loan is written toward, and on the lead program it comes from the same house.

Life company, bank and balance sheet partners
$5M–$300M+Loan Size
75%Max LTV
90%With Sub
35 YrLongest

Where Fixed Rate Debt Is PricingLead program first

ProgramTermsTerm
$5M–$300M+75 percent of appraised value, and 85 percent and above with mezzanine. Five, seven and ten year terms on a thirty-year amortization, priced off swaps, non-recourse to key principals with customary carve-outs. Defeasance or yield maintenance.5, 7, 10 yr
$5M+ subordinateUp to 90 percent of value behind the senior loan. Mezzanine, B-notes and preferred equity, typically interest only, at 9 to 12 percent.3–10 yr
Life company fixedTreasury plus 150 to 220 at 60 to 75 percent leverage, which prices in the low to high six percent range against the current curve. Best quotes reach Treasury plus 170 on a quarter point fee.3–35 yr
Securitized fixedUnder 75 percent of value at 1.30x coverage, 1.25x on multifamily, priced off swaps or Treasuries and generally at par.5, 7, 10 yr
Retail and industrial are pricing inside office. Permanent debt on industrial is quoted at 162 basis points over the matching Treasury at 60 to 65 percent leverage and retail at 176, against 220 for office on the same leverage. Both have tightened over the past year while office has widened, and one large life company now marks office “selective” in its own published guidelines while listing retail and industrial without qualification.
Coverage sets the loan, not the appraisal. Most permanent quotes test at 1.25x to 1.30x on underwritten net cash flow, and that constraint binds before the leverage cap on all but the lowest-basis files. A center at ninety percent occupancy with two years of average lease term left prices worse than one at eighty percent with eight, because the lender is underwriting the rent that survives the loan rather than the rent collected this month.

Before You Send It

  • Rent roll and trailing twelve, with the lease expiry schedule
  • What you paid and when, since a recent purchase is sized off cost rather than appraised value at most banks
  • Anchor sales reporting where the lease requires it
  • Deposit at application is normal on life company quotes and is paid to the lender toward third party reports
Get A Term Sheet →
Retail & Industrial Term Sheet

Terms In One Business Day

Anything you do not have yet can be left blank. An incomplete file is still worth sending.

Rent roll, trailing twelve, lease abstracts, capital budget, appraisal. PDF, Word, Excel, images or a zip.
Or send it by email or call (561) 410-2098.

Business purpose only. We never collect money before closing. Sizing shown is the published program across the lenders we place through and is not a commitment. Final loan amount follows appraisal, lease review and title. Forman Capital Partners is a commercial capital advisory firm. No upfront fees under any circumstances.

One Business Day

Send the rent roll and the numbers.

Location, square feet, occupancy, what you paid and what you want to borrow is enough to size it. A half-empty center or a building you are backfilling is still worth sending, because the lease-up and the capital budget get funded alongside the loan. Every file is read by a person and answered within one business day, including the ones that do not work, which are declined the same day rather than left open.

(561) 410-2098

Forman Capital Partners is a commercial capital advisory firm. We are not a direct lender, bank, mortgage broker, real estate broker, or real estate agent. We do not originate, fund, underwrite, or service loans. All financing is arranged through and provided by independent third-party lenders. Our role is limited to introducing borrowers to potential lending sources and assisting in the facilitation of the loan process.

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Not Legal, Tax, or Financial Advice. Information on this page is for general informational purposes only and does not constitute legal, tax, financial, or investment advice. Karina Vasquez, Esq. is independent counsel and her involvement in structuring and review of capital advisory transactions is limited to the work agreed to in writing on a matter-by-matter basis.

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