Mixed-use properties combine residential and commercial space, which puts them outside many bank programs. Financing them comes down to the income mix, the strength of each component, and the exit.
Mixed-use properties, apartments above retail or office alongside residential, are some of the most valuable assets in a market and some of the hardest to finance through a bank, because they don't fit cleanly into a residential or a commercial program.
Lenders look at the income mix, the strength of the commercial tenants, the condition and location, and your exit plan. For deals that need lease-up or repositioning before they qualify for permanent financing, bridge and creative financing are frequently the most practical paths.
A lender who structures around the asset, rather than forcing it into a single-use box, can get the deal done.
