As a business owner, you may have come across the term ADC loan when looking into financing options for a construction project. ADC stands for “acquisition, development and construction,” and an ADC loan is a type of commercial real estate loan specifically designed to finance the acquisition of land, development of the property and construction of a new building.

An ADC loan is typically used by developers or investors who plan to purchase a piece of land with the intention of developing it into a commercial property such as an office building, shopping center, or hotel. The loan covers the cost of the land acquisition, development and construction of the project and is secured by the property itself.

Unlike other types of commercial real estate loans, ADC loans are considered higher risk because they are often used for speculative projects that have yet to generate any income. As such, ADC loans typically come with higher interest rates and stricter underwriting requirements.

If you’re considering an ADC loan, it’s important to work with a lender who specializes in this type of financing and has experience with the unique challenges and risks involved. At GILKO CAPITAL, we have a team of experts who can help guide you through the process and structure a loan that meets your specific needs.

When it comes to ADC loans, proper planning and risk management are key. By working with an experienced lender like GILKO CAPITAL, you can ensure that your project is set up for success and that you have the resources you need to see it through to completion.