Industrial property is the collateral private lenders in Western Canada know best: shops, bays, warehouses and yards in Edmonton, Calgary, the Lower Mainland, Kelowna, Saskatoon and Winnipeg. It is functional, it leases, and it sells in a predictable market.
Why owner-occupiers are buying
Operators who have leased for a decade are buying their building, or a better one, before the next rent increase. The bank will often finance the purchase, but on the bank’s timeline. A private loan closes on the vendor’s date and is refinanced by the bank once the business is in and the statements are clean.
What we underwrite
- Location and access: proximity to highways, rail and the trade areas the tenant serves
- Functionality: ceiling height, door count, power, yard size and crane capacity
- Environmental history: a Phase I assessment is standard for industrial sites, and some uses require Phase II
- Income: lease terms and tenant quality for investment property; the operating business for owner-occupied
- Market: comparable sales and the depth of demand if the property had to be sold
Loan-to-value
Up to 75 per cent of appraised value on income-producing property with strong tenants, lower for specialized buildings or thin markets. Land with servicing in place is financed at lower ratios and shorter terms. Every file gets a current AACI appraisal and a title search at the provincial land titles office.
Have a situation like this? Tell us about the deal and a principal will respond within two business days. Cascade lends to businesses only, in Canadian dollars, and every rate we quote is an annual rate.
