Retail property
Smart-risk lending solutions for retail property owners and developers
Retail properties come in all shapes and sizes, and so do First National’s lending programs for this important asset class.
We understand and appreciate the differences in retail property assets because we work closely with developers and asset managers across the country to achieve their goals through empowering advice and strategic capital deployment.
Retail assets we finance:
Throughout our history of lending across Canada, we have amassed significant experience by participating across these retail asset types:
- Neighbourhood plazas and strip malls of 30,000+ sq. ft.
- Retail centers of 30,000 to 150,000 sq. ft. often anchored by a supermarket to provide service for daily living
- Community centers of 150,000 to 400,000 sq. ft. usually anchored by a junior or discount department store
- Regional malls and power centers of 400,000+ sq. ft. anchored by several department stores or big-box retailers
Standard financing
First National’s standard financing programs are favoured by borrowers when acquiring a new property or refinancing an existing building. Loan terms typically range from three to five years, have a fixed interest rate, and are closed to prepayment for the term’s duration.
Bridge financing
First National’s bridge loan terms usually range from three months to three years, include floating interest rates and allow some form of early prepayment. Borrowers choose this solution until standard financing is secured or while they contemplate a property sale, a change in ownership structure or enhance their tenant roster.
Asset repositioning
First National enables owners to access a property’s equity for a short term, typically two years or less, to fund capital improvements or repairs without the need to raise capital from personal sources or less flexible, higher-cost alternatives.
Secondary financing
A First National second mortgage enables borrowers to liberate property equity and use it to purchase another asset or renovate/repair an existing property.
Construction financing
A First National construction loan provides funds to cover the cost of building or rehabilitating a retail property with terms typically of three years or less.
Smart risk solutions in action for retail
See how we’ve applied our financing products innovatively to help retail borrowers achieve their goals with performance and value.
To refinance the property.
- $5.1 Million
- 17,488 sq. ft.
- Oakville, Ontario
- Conventional first mortgage
- 5 years term, 25 years amortization
- LTV: 66%
To refinance the property and obtain equity capital for renovation business
- $11.7 Million
- 165,528 sq. ft.
- Barrie, Ontario
- Loan financing
- 7 years term, 25 years amortization
- LTV: 70%
Seeking a term loan to provide capital for the purchase of retail property
- $6.8 Million
- 19,656 sq. ft.
- London, Ontario
- Conventional loan
- 5 years term, 25 years amortization
- LTV: 60.0%
To refinance the current loan on the subject properties
- $4.6 Million
- 57,574 sq. ft.
- Woodstock/Orangeville, Ontario
- Refinance
- 5 years term, 20 years amortization
- LTV: 70%
Construction financing for the development of urban retail
- $9 million
- 84,530 sq ft
- Oakville, Ontario
- Conventional construction advance
- 3 years term, 8 years amortization
- LTV: 75%
Liberate existing debt against property to finance continued improvements on subject property
- $6 million
- 32,542 sq ft
- Milton, Ontario
- CMHC refinancing first mortgage
- Conventional mortgage extension
- 3 months term, interest only
Construction financing for the development of commercial space on subject property
- $5 million
- 49,120 sq ft
- Kitchener, Ontario
- Conventional loan extension
- 1 year term, 8 years amortization
- LTV: 65%
Provide funds required to re-lease the site and invest in further additions to subject property
- $7 million
- 42,440 sq ft
- North York, Ontario
- Conventional bridge renewal
- 1 year term, 3 years amortization
- LTV: 70%
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