Retail

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 retail 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 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 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%

Bridge loan used to release the closing grocery store on the property

$2 million
45,529 sq. ft.
Calgary, Alberta

Conventional bridge loan
2 years term, interest only amortization
LTV: 70%

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Latest resources and insights

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

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View other retail mortgage solutions

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.

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.

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