Financing Built Around the Property
First National provides commercial real estate financing for qualified retail and mixed-use properties, including acquisitions, refinancing, new construction and substantial property improvements.
As a principal commercial real estate lender, First National originates, underwrites, closes and services its loans. Borrowers and sponsors work directly with the lending organization evaluating the transaction.
Retail and mixed-use properties require an understanding of the underlying real estate as well as tenant composition, lease structure, occupancy, operating performance and the property’s competitive position within its market.
We originate, underwrite, close and service our commercial real estate loans.
More than four decades of commercial real estate lending inform our approach.
First National considers financing for qualified retail properties and mixed-use developments, including acquisitions, refinancing, new construction, substantial renovations, property improvements, qualified tenant improvements and repositioning.
First National considers financing for: qualified retail properties and mixed-use developments, including:
Shopping centers, neighborhood and community retail centers, multi-tenant retail properties and qualified mixed-use properties.
Each request is evaluated individually based on the property, sponsorship, collateral, operating performance, requested financing and proposed use of proceeds.
Preparing for retail or mixed-use financing starts with understanding what a lender will evaluate. Our complimentary guide covers tenant mix and concentration, lease rollover, mixed-use components, acquisition and refinancing, and construction and major improvements.
It also explains why a full shopping center is not necessarily a strong one, and what First National looks for instead.
Occupancy is important, but the percentage of occupied space does not by itself establish the financial strength of a retail property.
A lender also needs to understand who the tenants are, how much income is concentrated among major tenants, when leases expire, whether rents are sustainable and what capital may be required as leases roll over.
A highly occupied property facing several significant lease expirations may present greater risk than a property with somewhat lower occupancy but diversified tenancy, staggered lease maturities and demonstrated leasing demand.
For First National, retail underwriting therefore considers not simply how much space is occupied today, but the durability of the income supporting the property.
As a principal lender, First National provides direct access to the organization underwriting, evaluating and funding the proposed transaction. Underwriting, credit decisions, closing and loan servicing remain directly within First National’s lending process.
Yes. First National considers financing for qualified retail property acquisitions, including shopping centers, neighborhood and community retail centers, multi-tenant retail properties and other appropriate commercial retail real estate. Each acquisition is evaluated individually based on the complete transaction.
Yes. First National considers refinancing for qualified retail and mixed-use properties. Existing debt is only one part of the review; underwriting also considers current property value, sustainable operating performance, tenancy, sponsorship and other relevant factors.
First National considers financing for qualified new construction. Construction underwriting may include plans and specifications, budget, permits and approvals, contractor qualifications, borrower equity, contingencies, project schedule and anticipated leasing or stabilization.
Yes. First National considers qualified substantial renovations, property improvements, tenant improvements and repositioning of existing retail and mixed-use properties, subject to underwriting and due diligence.
Qualified property types may include shopping centers, neighborhood and community retail centers, multi-tenant retail properties and other appropriate commercial retail real estate.
First National evaluates the contribution of each component to overall operating performance and value. Depending on the transaction, review may include the allocation of space among uses, occupancy, tenant composition, lease terms, historical operating results, property condition and the relationship between the individual components of the development.
Depending on the transaction, underwriting may consider the rent roll, tenant mix, lease expiration schedule, tenant concentration, historical occupancy, contractual rents, operating expenses, property condition, location, competitive market position, sponsorship, collateral, existing debt and proposed use of proceeds.
Yes. First National is a principal commercial real estate lender and performs underwriting and credit evaluation internally. Borrowers and their representatives work directly with the lending organization evaluating the transaction.
