Office

Short-term (bridge) Financing

Bridge financing addresses a borrower’s short-term needs, usually three months to three years. Some borrowers choose bridge financing when they need flexibility to decide about the future of an asset (i.e. contemplating a sale, impending change in ownership structure or operational planning) or time to coordinate a standard financing option.

For office assets, short-term financing may be a strategic solution if many of the property’s leases are approaching maturity.

The flexibility enables the borrower to negotiate new leases or acquire new tenants, ultimately positioning the property more positively for standard financing.

Bridge financing typically includes floating interest rates and usually allows some form of early prepayment. Consistent cash flows and strong operational histories are key considerations for this type of financing.

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Economic and political developments – both in Canada and globally – can impact the commercial real estate market. First National experts follow these trends closely and provide honest, real and professional perspectives into what they could mean for your portfolio.

Smart risk solutions in action for office

See how we’ve applied our financing products innovatively to help office borrowers achieve their goals with performance and value.

Equity shall be used to facilitate the acquisition

$21 Million
124,662 sq. ft.
Calgary, Alberta

Conventional Mortgage
7 years term, 25 years amortization
LTV: 54.00%

Refinance a first and second mortgage

$94 Million
176,624 sq. ft.
Vancouver, British Columbia

Bridge loan/construction takeout financing
2 years term, interest only amortization
LTV: 52.7%

To refinance existing debt on the subject property and to provide equity for capital improvements at the subject property

$4 Million
30,181 sq. ft.
London, Ontario

Conventional loan financing proposal
5 years term, 25 years amortization
LTV: 69%

Construction financing for an eight level office building

$75 million
137,800 sq. ft.
Vancouver, British Columbia

Conventional first construction mortgage
3 terms years, interest only amortization
LTV: 48%

Provide acquisition financing for office building for purchase

$7 million
27,911 sq. ft.
Bolton, Ontario

Conventional first mortgage
5 years term, 25 years amortization
LTV: 67%

Provide a 5 year term loan for refinancing and recuperating equity invested in CAPEX

$4 million
14,939 sq. ft.
Montreal, Quebec

Conventional first mortgage
5 years term, 25 years amortization
LTV: 72%

Providing funds required to refinance the current loan and provide funds for future capital expenditures

$4 million
198,093 sq. ft.
Windsor, Ontario

Conventional first mortgage
5 years term, 25 years amortization
LTV: 48%

Facilitating the purchase of the property contracted for sale

$4 million
15,110 Sq. ft.
Toronto, Ontario

First mortgage loan
5 years term, 25 years amortization
LTV: 57%

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Latest resources and insights

Original perspectives and personal viewpoints on developments and industry trends in commercial real estate.

Growth, Value and Risk

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View other office mortgage solutions

Standard Financing

First National’s standard financing programs are favoured by borrowers who look to acquire a new property or refinance 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.

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 access property equity and use it to purchase another asset or renovate/repair their existing property.

Construction financing

A First National construction loan provides funds to cover the cost of building or rehabilitating a property with terms typically of three years or less.

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