In commercial real estate, capital is more than a means to close—it’s a lever for control, timing, and scale. For developers, sponsors, and investors, understanding how to structure and deploy financing is essential not just to securing deals, but to making them perform across their full lifecycle.
At Solomon Stanley Financial, we specialize in guiding our clients through complex financing structures that align with their long-term objectives. Whether acquiring, developing, or repositioning income-producing properties, a properly structured commercial real estate loan can determine the success—or failure—of an entire strategy.
This guide explains how CRE loans work, what makes them different from residential or consumer lending, and how our approach at Solomon Stanley goes beyond access to capital, offering strategic value at every stage of the investment process.
What Is a Commercial Real Estate Loan?
A commercial real estate loan is a secured financing product used to fund the acquisition, development, refinancing, or repositioning of income-generating properties. These loans apply to asset classes such as multifamily housing, office buildings, industrial properties, retail centers, and hospitality developments. Borrowers are typically legal entities—such as LLCs or limited partnerships—rather than individuals.
Unlike traditional residential mortgages, CRE loans are underwritten primarily on the projected income and value of the property itself. Factors like Net Operating Income (NOI), Debt Service Coverage Ratio (DSCR), and market comparables carry more weight than the borrower’s personal credit profile. This asset-based nature gives CRE loans a unique flexibility, but also requires a higher level of financial acumen and planning.
How CRE Loans Differ from Residential Lending
|
Feature |
Commercial Loans |
Residential Loans |
| Borrower | Entity (LLC, LP) | Individual |
| Purpose | Investment property | Primary residence |
| Underwriting Focus | Asset cash flow, DSCR, business plan | Income, credit score |
| Structure | Often interest-only, short to mid-term | Fully amortized, long-term fixed |
| Repayment Risk | Driven by asset performance | Driven by borrower’s job security |
These structural and risk-based differences are precisely why commercial real estate loans require a strategy-first mindset. It’s not just about rate, it’s about aligning terms with the deal lifecycle.
Types of Commercial Real Estate Loans
Selecting the right type of financing isn’t about products—it’s about purpose. At Solomon Stanley, we help clients structure capital based on the trajectory of their project, not lender preferences. Common loan types include:
Bridge Loans are short-term instruments (typically 6–24 months) that allow sponsors to act quickly on acquisitions, renovations, or time-sensitive opportunities. They’re ideal for assets that are not yet stabilized or bankable.
Permanent Loans are long-term financing solutions for stabilized assets with strong cash flow. Offered by agencies, life companies, or banks, they are often amortized over 20–30 years with lower rates, but tighter terms.
Construction Loans fund ground-up development or major renovations. Disbursed in stages, they are usually interest-only during construction, with a planned take-out once the project stabilizes.
Mezzanine or Preferred Equity fills the gap between senior debt and sponsor equity. These structures allow sponsors to enhance leverage without giving up control—often critical in high-growth or value-add scenarios.
Owner-User Loans, such as SBA 504 or 7(a) programs, are designed for business owners occupying their own space. While not common for pure investors, they’re valuable for hybrid real estate strategies.
How the CRE Loan Process Works
At Solomon Stanley, we treat financing as part of the broader business plan. Our process starts by aligning capital structure with your operational strategy—because real estate doesn’t exist in a vacuum, and neither should your financing.
Capital Planning begins with a full assessment of your goals, timeline, risk profile, and intended exit. We model how different capital combinations affect return, control, and flexibility over time.
Capital Stack Design evaluates the role of senior debt, mezzanine, preferred equity, and sponsor equity. Our goal is to ensure each layer supports—not restricts—the project.
Lender Sourcing involves matching the right capital to the right deal. Whether institutional, private, or non-bank, we bring in lenders aligned with your asset, geography, and business model—not just your rate expectations.
Term Structuring is where we negotiate beyond rate—focusing on covenants, amortization, prepayment terms, and draw schedules. We tailor the loan to your execution plan, not the other way around.
Execution & Oversight ensures each deal closes efficiently. Our team manages diligence, third-party reports, legal workflows, and timeline enforcement to keep capital moving with the project.
Who Uses Commercial Real Estate Loans?
These loans serve professionals treating real estate as a business, not just an asset. Our clients include:
- Developers executing ground-up projects, often under tight timelines
- Investment sponsors seeking to scale portfolios or syndications
- Owner-operators acquiring or refinancing strategic properties
- Family offices and real estate funds building long-term yield
- Institutional players deploying capital across diversified assets
Each of these groups brings a different need, and our role in Solomon Stanley Financial is to align their capital to that need with precision.
Why Solomon Stanley Financial
We are more than capital brokers, we are capital strategists. Our firm brings a deep understanding of how deal structure affects long-term performance, control, and investor outcomes. We work side-by-side with our clients to ensure each financing decision supports their broader vision, not just the immediate transaction.
From transitional assets to stabilized portfolios, our team helps clients finance intelligently, navigate complexity, and close with confidence. If you’re evaluating your next acquisition, refinance, or development strategy, we’re ready to structure the capital that gets you there.
