Commercial Construction Loans
Sunwest Bank:
Whether your next construction project is multifamily, SFR tract, retail, or other commercial property, Sunwest Bank can help guide you through every stage. Sunwest Bank provides the experienced team and solutions you need to make your business vision a reality, from acquisition and pre-development planning to construction and permanent financing.
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Our Strength and Expertise
With over $3 billion in assets and 50+ years of serving the Western United States and Florida, we have the strength and expertise to handle even the most complex new construction and renovation projects. Our hands-on approach and local underwriting mean quick response times during the loan approval process and when processing funding draw requests during construction.
Conventional real estate lending involves better understanding our clients’ needs to help facilitate their acquisition or refinance of commercial real estate. We lend against commercial real estate properties, including all major asset types: industrial, multifamily, retail, office, and medical offices. See our industry specialists for additional lending opportunities.
We have extensive experience with commercial real estate and construction loans and understand the intricacies of commercial construction loan financing. Over the decades, we have helped finance thousands of successful commercial construction projects from the ground up.
Our team includes construction lending experts and commercial bankers with deep local real estate market knowledge. This combination allows us to deliver custom solutions tailored to each client’s unique project needs.
Customized Financing Solutions
At Sunwest Bank, we take the time to understand your unique business needs. Once approved, your dedicated banker will structure loan terms to provide sufficient time to complete the project while accounting for possible contingencies. We want to set our clients up for success, not just during construction but for the long haul.
Construction Business Loans
We provide customized financing solutions for many commercial construction projects, from small businesses expanding their footprint to significant multi-use developments.
Our commercial construction loans can be used for the following:
- Office buildings
- Retail centers
- Multifamily apartments
- Hotels
- Mixed-use complexes
- Industrial facilities
We have experience financing hundreds of different types of commercial construction projects.
How Construction Loans Work
Construction loans can finance ground-up new construction and renovations of existing buildings. While construction lending is a specialty service, it represents a multi-billion dollar industry as developers bring new residential, retail, office, industrial, and mixed-use projects to life.
Commercial construction loans are 12 to 36 months long, providing enough runway to complete and stabilize even major projects. Loan proceeds are dispersed over this timeline as work is completed, ensuring funds are used appropriately.
Construction loans differ from permanent commercial mortgages or SBA 7(a) loans in that they are short-term and have variable interest rates. This makes them ideal for the construction phase, while conversion to permanent long-term financing is required once the project is built and stabilized.
Not all projects require complete demolition and rebuild. We also provide commercial renovation loans and construction to permanent loans for projects involving improvements to existing buildings.
Our Advantage as Your Lender
Securing competitive loan terms requires working with an experienced lender who understands local market conditions. This is where Sunwest Bank shines. As a commercial real estate and construction lending leader, we have originated over $1 billion in construction loans with minimum interest rates.
With Sunwest Bank, you’ll benefit from:
- Local processing and underwriting for faster decision making
- Competitive interest rates and fees
- Flexible draw schedules based on your build timeline
- In-house loan disbursement
- Partial release structure
We understand commercial construction loans and how they work. Our expertise results in a smoother process for your business.
Streamlined Process
Construction lending can be complex, but it doesn’t have to be with the right lending partner. Our straightforward process lets you focus on your business while we handle the details.
Pre-Development Phase
Prior to finalizing plans, we will partner with you to analyze the viability of your project. This includes assessing market demand, budget, entitlements, and site plans. We want to ensure the project goes in smoothly and is set up for success. For renovations, we will work with you to determine the most cost-effective improvements.
We can guide factors like loan-to-cost ratios, budgeting, feasibility, zoning, permitting, and more during pre-development based on our deep expertise.
Loan Application & Underwriting
Once plans are finalized, we will gather information about your company, partners, and principals as part of the application process. Our local underwriting team will work quickly to analyze property appraisal, budgets, permits, builder agreements, and your company’s financial strength. We will also assess your credit score and cash flow.
As part of underwriting your construction costs, we carefully evaluate project costs and review fees to ensure proper allocation and contingencies. Your credit score will also be assessed.
Loan Approval
With all data compiled, we will present your loan package to our internal loan committee for prompt approval. Expect a fast turnaround so you can get started on construction without delay.
Working with a construction lending expert like Sunwest Bank streamlines the loan approval process. We will structure repayment terms to fit your project’s unique needs.
Construction Phase Management
Our support continues through the construction process. We will work with you to establish a monthly draw schedule, tying payouts to project milestones and completion percentages. With each draw, we verify work is on budget and schedule.
Experienced construction lenders like Sunwest Bank have strong construction phase management. By overseeing the drawing process, we want to ensure your project stays on track financially.
Conversion to Permanent Financing
As construction nears completion, we will coordinate long-term permanent financing, often providing both construction loans and permanent commercial mortgages. This consolidated approach is efficient, minimizing origination costs.
We offer construction to permanent loans, with one closing and one application process for convenience. This saves business owners both time and money. We can also arrange take-out financing with other lenders if needed.
Ongoing Partnership
Our customer relationships extend beyond just one transaction. We want to be your trusted financial partner on your projects now and well into the future. Let us support your business growth every step of the way.
Many of our clients are repeat customers working on multiple projects. We value these ongoing partnerships.
Let’s Turn Your Vision into Reality
With low down payments, fast approvals, local underwriting, and experienced project management, Sunwest Bank has the solutions to turn your construction project into reality. From retail centers to apartments, hotels to industrial facilities, we know how commercial construction loans work and are committed to your success.
We have the expertise and resources to handle small business construction loans or significant commercial projects. Our experienced bankers will guide you from initial application through completion and beyond. We can work with virtually any type of commercial construction project.
A construction loan can be complex, but our team drastically simplifies the process so you can focus on your business. As an experienced construction lender, we offer solutions tailored to your needs with exceptional service before, during, and after project completion.
Partner With a Commercial Construction Expert
Sunwest Bank has been a leading provider of commercial construction financing for over 50 years. Our experienced team has worked on projects ranging from a few million to over $100 million.
We understand the intricacies of how commercial construction loans work and how to ensure a smooth process for your subsequent development. Our customized financing solutions consider your business needs, credit, total project cost, project fees, construction plan, timelines, and more.
Contact us today to learn more or get started on your next new construction loan or commercial building renovation project. We look forward to helping turn your business vision into a reality.