Specialized lending to help enable your commercial development projects
What we doProtective originates and manages commercial real estate investments with a focus on stabilized, fixed rate assets and a portfolio in excess of $10 billion. All investments are made as part of Protective's overall investment strategy. Protective's experienced team works with commercial real estate developers and investors across the United States to provide financing solutions for their real estate investments through its extensive correspondent network.
Our lending focusProtective specializes in making real estate loans secured by high-quality commercial real estate assets to best-in-class sponsors across core property types. This includes multi-family properties, industrial warehouse or distribution properties, grocery-anchored retail centers, single-tenant credit industrial properties, medical office buildings and seniors housing properties.
Commercial mortgage guidelines and criteriaProtective deploys roughly $1.5 billion annually on commercial real estate debt. A high-level outline of our lending criteria and terms are below:
- Loan size: $3 million to $50 million (per asset)
- Loan to value: Up to 75%
- Debt service coverage ratio: 1.20x minimum (on a 25-year basis)
- Term: Balloon loan terms range from 3 to 15 years and fully amortizing loan terms range from 10 to 25 years
- Pricing: Fixed coupon at spread over Treasuries (locked at application)
- Amortization: Up to 30 years
- Interest only: Available
- Forward rate lock: Available (up to 12 months with a rate premium or fee)
Commercial mortgage programsProtective offers two loan programs.
- CONVENTIONAL PERMANENT LOANS
Long-term, fixed-rate loans structured on fully amortizing or balloon. Permanent loans are secured by best-in-class, stabilized commercial properties with an emphasis on sponsorship.
- PARTICIPATING LOANS
Yield-enhancing real estate investment on ground-up development or acquisition/rehab deals. Protective's Participating Loan Program provides high-leverage financing for value-add acquisitions and ground-up commercial developments with clearly defined and executable value creation strategies.
Financing available for select property types
Protective focuses principally on property types within these segments:
Industrial warehouse or distribution properties
Grocery-anchored retail centers
Medical office buildings
Additional guidelines and materials