Office and Commercial Properties
First National provides commercial real estate financing for qualified office properties throughout the continental United States, excluding Louisiana and North Dakota.
As a principal commercial real estate lender, First National originates, underwrites, closes and services its loans. Borrowers work directly with the lending organization evaluating and funding their transaction.
Our office property lending experience includes financing for acquisitions, refinancing, new construction, renovations, property improvements and other qualified commercial real estate requirements. Each request is evaluated according to the property, its operating characteristics and the proposed transaction.
We originate, underwrite, close and service our loans.
More than four decades of commercial real estate lending inform our approach.
First National considers financing for qualified office buildings and office properties, including acquisitions, refinancing, new construction, substantial renovations and property improvements.
Minimum Loan Amount: $5 million
Typical Loan Size: $6 million to $9 million
Typical Loan-to-Value: Approximately 65%
We evaluate each transaction individually. Considerations may include the property’s location, occupancy, tenant composition, lease terms, operating performance and condition, along with sponsorship, collateral, existing debt, the requested loan amount and the proposed use of proceeds.
First National considers qualified office financing transactions throughout the continental United States, excluding Louisiana and North Dakota. Final loan structure is subject to underwriting and due diligence.
First National considers financing for a range of qualified office property transactions:
Office property owners, investors and developers may contact First National to discuss an acquisition, refinancing, construction project or other qualified financing requirement.
As a principal lender, First National provides direct access to the organization underwriting and funding the proposed transaction.
Preparing for office financing starts with understanding what a lender will evaluate. Our complimentary guide covers lease rollover, tenant concentration, the key financial measures lenders use, capital needs and First National’s published office program parameters.
It also outlines the documents to have ready before starting a financing conversation.
Depending on the transaction, First National’s underwriting may consider:
Additional information may be required for a particular property or financing request.
Several years of operating history can help establish how the hotel has performed through changing market conditions.
ADR provides information about the average room rate actually achieved and helps a lender understand the hotel’s pricing position.
First National may consider how the property performs relative to competing hotels in its market. This may include evaluating nearby supply, brand strength, rate positioning, demand drivers and how the hotel compares within its competitive set.
The experience and performance of hotel management can materially influence revenue, operating costs, guest experience and property condition.
Current occupancy is important, but occupancy trends and the rates being achieved for occupied rooms can provide a more complete picture.
RevPAR combines occupancy and room-rate performance and can provide useful insight into how effectively the hotel is generating room revenue from its available inventory.
Brand affiliation, remaining franchise term, franchise requirements and the property’s standing with the franchisor can materially affect hotel operations and financing.
Deferred maintenance and required improvements can affect both near-term cash flow and the capital required following closing.
First National evaluates each office property based on the real estate, operating performance and overall transaction. The review may include location and market conditions, occupancy, tenant composition, lease terms, historical performance, property condition, sponsorship, existing debt and the proposed use of loan proceeds. Office_Building_Financing_09232…
Because every office property is different, additional information may be reviewed based on the specific financing request.
Occupancy is only one part of an office property’s financial picture. First National also considers:
New construction and substantial renovations go beyond an existing building’s current performance. First National may review:
Owners refinance office buildings for different reasons. First National evaluates each request individually, including:
First National performs its underwriting and credit evaluation internally. Borrowers benefit from:
Yes. First National considers financing for the acquisition of qualified office buildings and office properties. Each request is evaluated individually based on the property, sponsorship and proposed transaction.
Yes. First National considers qualified office building refinancing requests, including transactions involving existing debt maturity, restructuring or property-related capital needs.
First National considers qualified new office construction financing, subject to underwriting, due diligence and applicable construction controls.
Yes. First National considers financing for substantial renovations and improvements to qualified office properties.
Depending on the transaction, First National may review the location and market, occupancy, tenant composition, lease terms, operating performance, property condition, sponsorship, existing debt and requested use of proceeds.
Yes. First National performs its underwriting and credit evaluation internally.
When an appraisal or another third-party report is required, it is ordered or controlled by First National as part of the underwriting and due diligence process.
First National considers qualified transactions throughout the continental United States, excluding Louisiana and North Dakota.
