Commercial Real Estate Financing Built on Local Knowledge
Commercial real estate transactions demand a lender who understands not just underwriting ratios, but the actual market where the property sits — traffic patterns, zoning trends, comparable cap rates for the submarket, and the economic drivers that sustain occupancy. Sascu's commercial real estate team has funded over $400 million in CRE transactions across owner-occupied properties, investment acquisitions, ground-up construction, multi-family assets, and mixed-use developments. We underwrite locally, which means the person analyzing your deal knows whether that retail corridor is gaining or losing tenants in real time.
Owner-occupied commercial real estate — where your business uses at least 51% of the property — benefits from the most favorable terms in our portfolio. Sascu finances up to 90% loan-to-value on owner-occupied purchases with terms extending to 25 years and both fixed-rate and variable-rate options. Fixed-rate terms of 5, 7, and 10 years are common, with a balloon or rate reset at maturity. Variable-rate loans index to the 5-year Treasury or SOFR plus a spread that reflects property type, borrower financial strength, and market conditions. Owner-occupied borrowers also qualify for SBA 504 financing, which can reduce the down payment requirement to as little as 10% through the CDC debenture structure.
Investment Properties and Multi-Family
Non-owner-occupied investment properties carry different risk profiles, and Sascu prices them accordingly with a disciplined but flexible approach.
For stabilized investment properties with demonstrated cash flow — office buildings, retail centers, industrial warehouses, and self-storage facilities — Sascu offers terms up to 20 years at loan-to-value ratios between 70% and 80% depending on debt service coverage strength. We look for a minimum debt service coverage ratio of 1.25x based on actual operating statements, not pro forma projections. Our underwriting accounts for vacancy and credit loss, replacement reserves, management fees, and structural repairs through a property condition assessment that we order as part of the due diligence package.
Multi-family properties with five or more units represent a growing segment of our CRE portfolio. Sascu finances both market-rate and affordable multi-family acquisitions and refinances with terms to 25 years for properties demonstrating consistent occupancy above 90%. Our multi-family underwriting applies a debt yield test alongside traditional DSCR analysis — a metric that measures net operating income against the loan amount without regard to interest rate or amortization — to ensure the property can service debt even if rates rise at renewal. For multi-family borrowers exploring agency financing through Fannie Mae or Freddie Mac, Sascu maintains correspondent relationships that can route qualifying properties to the program delivering the most competitive execution.
Construction Lending and Mixed-Use Development
Construction financing requires a lender that manages draw schedules, monitors progress, and keeps projects on timeline and on budget.
Sascu construction loans cover ground-up commercial buildings, major renovations, tenant improvements, and mixed-use developments combining retail, office, and residential components. Loan-to-cost maximums reach 80% for well-capitalized sponsors with successful project histories, and we typically fund interest reserves within the loan so borrowers avoid out-of-pocket carrying costs during the construction period. Draw requests are processed within five business days of inspection, and our construction administration team conducts monthly site visits to verify completion percentages against submitted draw packages.
Mixed-use developments — properties combining commercial space on lower floors with residential units above, or projects blending retail, office, and multi-family in a single structure — require specialized underwriting that segments income streams by use type while recognizing shared operating expenses. Sascu structures mixed-use loans with a blended rate and term that reflects the weighted risk profile of the component uses, and we work with developers early in the entitlement process to identify financing milestones aligned with municipal approvals. Projects located in opportunity zones or designated redevelopment areas may qualify for enhanced terms through Sascu's community development lending program.
CRE Product Comparison
Our commercial real estate portfolio spans multiple property types with financing structures matched to each use case.
| Property Type | Max LTV | Term Range | Rate Options | Minimum Loan |
|---|---|---|---|---|
| Owner-Occupied Commercial | Up to 90% | 5–25 years | Fixed 5/7/10 yr, variable (SOFR + spread) | $250,000 |
| Investment Property (Stabilized) | 70–80% | 5–20 years | Fixed 5/7 yr, variable | $500,000 |
| Multi-Family (5+ Units) | 75–80% | 5–25 years | Fixed 5/7/10 yr, agency execution available | $500,000 |
| Construction & Development | Up to 80% LTC | 12–36 months (interest-only) | Variable (Prime or SOFR + spread) | $750,000 |
| Mixed-Use Development | 75–80% | 5–25 years (permanent), 12–36 mo (construction) | Blended rate based on component risk | $750,000 |
All Sascu CRE loans require an independent appraisal, environmental site assessment, and title insurance. Borrower entities must be organized in the United States with adequate operating history or sponsor experience in the subject property type. Loans above $2 million typically require audited or reviewed financial statements. Our commercial lending team provides a preliminary term sheet within three business days of receiving a complete loan package. For regulatory guidance on commercial lending and consumer protections, the FDIC publishes resources at fdic.gov.