The first are the larger scale industrial condos in modern facilities. These can include office condos as well as technology based production and development usages.
The second category is the properties with what we will call more traditional industrial use such as manufacturing, transportation, construction, and so on.
Because of the nature of use of the second category, industrial mortgages for these types of properties tend to be harder to locate and secure that typical commercial mortgages.
Industrial properties draw greater attention to the environmental impacts of the property use as well as how the use impacts roadways, neighbors, zoning requirements and so on.
Many institutional lenders do not want to have anything to do with category two and if they do, its for very specific industries and areas they are comfortable.
And while there are private lenders that will do industrial property financing, the vast majority of privates won’t do industrial deals either.
The key to getting your industrial property financed in a timely fashion with terms and conditions you can live with is to make sure that you start the process of seeking capital with a thorough assessment of your situation with a mortgage specialist (like me) that works on commercial and industrial projects.
Too often I see business owners and managers waste time either applying to lenders that are unlikely to provide financing or submitting incomplete applications that lead to disclosure issues further down the line, perhaps weeks or months after any initial discussions with the lender.
Because industrial mortgage lenders tend to focus on more things due to the inherent risks associated with these types of properties and the fact that the resale market can take a much longer time to liquidate a property in the event of a default, its critically important to make sure we present a complete application package to relevant lenders only.
The best way to assure this process goes smoothly and that you’re not wasting time and money in the process is to have an initial assessment of your situation done by an industrial mortgage specialist.
If you give me a call, I will provide you with a no cost or obligation assessment that will outline what I believe to be your best options.
I’m not going to collect your application and submit it to a whole bunch of lenders in the hope that someone may decide to finance your deal.
The goal is to work with relevant lenders, one at a time, so that deal does not get killed by excessive shopping. And if I can’t locate a suitable option for you, I’ll let you know immediately so I don’t waste your time.