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We arrange first and second mortgages, bridge, interim and permanent financing for income producing investment properties and select owner-occupied commercial building and development projects.
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CMHC Insured Mortgages
As an Approved Correspondent, we enjoy an exceptional working relationship with CMHC's regional underwriters. Margolis Capital works very closely with CMHC and a wide range of national and regional balance sheet and securitized lenders to arrange and fund insured mortgages on a variety of multiple family housing types, including apartments, condominiums, townhouses, senior's long term care and assisted living facilities.
Our expertise includes comprehensive knowledge of CMHC's products and policies on new and existing multi-unit projects including affordable housing. We can compare CMHC insured and conventional lending options for our clients, and prepare a costs/benefits analysis of the respective advantages in order to determine the most appropriate financing solution for the borrower's needs. For large portfolio clients, we can assist with completion of CMHC's financial review to ensure ongoing compliance.
Whether it is an office building, retail centre, industrial/warehouse property or multi-unit residential development (rental or condominium), Margolis Capital can arrange financing for land or property acquisition, construction and inventory financing.
Interim construction loans are funded on a cost-to-complete basis in the area of 60% - 85% of total budgeted costs, and inventory loans are usually done at 55% - 75% of the completed value. Some of the myriad of critical factors negotiated for each transaction can include fixed or floating rates, interest only, duration of term, financial covenants and form of recourse. Equity requirements and loan pricing are directly related to levels of preleasing and quality of tenant covenants for income properties, and presales as a percentage of liquidation point for condominium projects.
Conventional mortgages are typically available up to 75% of the appraised value (higher in some cases), amortized up to 25 years (or longer) depending on building age, location, physical condition, lease profile, available debt service and building use. Key variables negotiated for each transaction can include fixed or floating rates, forward start arrangements, interest only or amortizing payment schedules, demand or committed facilities, duration of term (from under 5 years to 25 years or longer), financial covenants and form of recourse (if required).
We have access to secondary funding on construction projects to bridge the gap between senior financing requirements and equity availability; this can increase "loan to cost" financing to as much as 90% or beyond.
For income producing (cashflowing) properties, investors can provide interest-only secondary mortgages co-terminus with the first mortgage to fund refurbishments, tenant inducements, leasing commissions and equity withdrawals.
Margolis Capital can arrange financing for big box outlets, shopping centres and strip plazas. Loan sizes will vary depending on the particular property and its existing lease profile as well as on local economics.
Ranging from high-rise Class "A" space in the financial core of a major urban centre to low-rise Class "B" and "C" space in suburban or secondary markets, we can arrange financing for virtually any kind of office development, both new and existing.
Specialty financing for a broad range of hotel properties is available in major markets, resort areas and other selected locations. Conventional loan amounts for proven operators are generally up to 50% - 65% of value, depending on flag, services, property condition and age, location, management and sponsorship.
We can place financing for multi-tenanted industrial sites, single user industrial/office space, owner occupied and for build-to-suit construction purposes. Loan amounts are a function of the property type, age and condition, location, use, lease maturity profile, tenant covenants and sponsorship.
For experienced developers, Margolis Capital can arrange acquisition and servicing loans to take raw land through the development agreement and subdivision process. Land bank loans are generally available up to 50% of cost, and servicing loans for both residential and commercial/industrial lots are funded on a cost-to-complete basis in the area of 60% - 85% of total cost, depending on the type and location of the lots, and the level of pre-sales relative to liquidation point.