Industrial Real Estate Mortgage
How do you finance your warehouse space in Vancouver?
When it comes to financing industrial properties for owner-users. The commercial mortgage terms are vastly different for purchasers supporting their investment with a operating company guarantee.
In today's market, all of the big five Canadian banks in British Columbia are offering high leverage options to allow companies the ability to preserve their working capital, in support of their industrial real estate investment.
In most cases, at Crete Capital, we see our clients purchase their industrial warehouse properties in a separate real estate holding company. This real estate "holdco" also carries the debt and is considered the Borrower. The operating company will sign a lease agreement with the holding company and make monthly payments to the entity similar to an arms length transaction.
What allows for advantageous commercial mortgage terms in this scenario is the Corporate Guarantee provided from the operating company to the lender to support the commercial mortgage. The typical security structure includes a General Security Agreement and a first charge Collateral Mortgage on the property to be financed.
To learn more about the keys to securing competitive terms and best commercial mortgage rates with lenders for your industrial warehouse or commercial property in BC, Click HERE.
The guys at Crete Capital are the best in business. They are experienced and they know how to get things done. We will definitely use them again in the future! Thank you Joey and Derek! Great Team!
-Vincent Mak, CEO
CMS Metals Inc.