The Ethical Homes team offers construction/A&D loans for terms of up to 2 years, on loan amounts of between $500k and $500 million. Interest rates for these loans generally run between 1-9 percentage points higher than conventional residential mortgage rates (depending on the specifics of the scenario). Borrowers generally need to contribute at least 20% of the initial acquisition costs (30% preferred), and the eventual stabilized post-construction value of the property should provide a final LTV of no more than 75% (65% preferred).

If you have acquisition & development funding needs, please do not hesitate to contact us and we would be glad to review your scenario for you.

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As the Washington Examiner discusses, vacancy rates in commercial properties in the DC area are currently at nearly 13%, the highest they’ve been in a decade, and commercial property values in some parts of the DC metro area are expected to drop by nearly 20%.

Looking on the bright side: property values will be dropping after the credit markets have had a chance to recover and rebuild themselves (unlike what happened with residential real estate late last year), so for commercial investors who sat out the recent boom, the coming year might be a good chance to purchase properties at good values.

Interested in talking to a commercial agent about what’s available in the current market? Let us know and we’d be glad to help you research your financing options, as well as put you in touch with a specialist for the area that you’re interested in.

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