Special use commercial real estate properties are a unique type of commercial property that requires a different approach when it comes to financing. They have specific characteristics that make them difficult to finance with conventional loans. However, there are specialized financing options available for such properties that GILKO CAPITAL can help you understand.
Special use commercial properties are buildings that have a unique purpose or function, such as schools, hospitals, religious institutions, golf course or theaters. These properties are designed to serve a specific purpose, and they are not easily converted to other uses. As a result, their value is often tied to their use, which makes them difficult to appraise.
The challenges associated with financing special use commercial properties stem from their unique characteristics. Lenders are often hesitant to finance such properties because of the risks associated with them. For instance, if the owner defaults on the loan, the lender might find it challenging to resell the property. Additionally, if the property is designed to serve a specific purpose, such as a school, there may be few potential buyers if the property is foreclosed.
Fortunately, there are specialized financing options available for special use commercial properties. One such option available to special use commercial property owners is the use of a mezzanine loan. A mezzanine loan is a type of debt financing that is subordinate to senior debt, which is usually a mortgage. This type of loan is designed to provide additional funding to the borrower based on the value of the property. Mezzanine loans can be an excellent source of financing for special use commercial properties because they provide additional funding that is not tied to the value of the property.
When financing special use commercial properties, it is essential to work with a lender who has experience dealing with these types of properties. GILKO CAPITAL has a team of experienced commercial mortgage brokers who can help you find the best financing options for your special use commercial property. We understand the challenges associated with financing such properties, and we can guide you through the process of securing the financing you need.
In conclusion, special use commercial properties are a unique type of commercial property that requires specialized financing options. Financing these properties can be challenging because of their unique characteristics, but there are options available to owners of such properties. By working with experienced commercial mortgage brokers like GILKO CAPITAL, owners of special use commercial properties can get the financing they need to succeed.
