Arizona commercial debt

Senior debt is the first decision

Senior debt is the mortgage that gets paid first and that can foreclose on the property. For a stabilized Arizona building it is usually a bank or credit union, a life company, or CMBS. For a stabilized apartment it may instead be an agency execution or HUD. The commercial mortgage guide is the long reading of that senior loan: coverage, leverage, process, timeline, and costs. This page is about the menu of debt around it.

Choosing the senior lender sets the rules for everything else. Many banks will not allow a mezzanine loan. Many CMBS pooling agreements allow it only on a form the servicer already knows. A life company may permit preferred equity and forbid a second lien. Ask before a subordinate term sheet is treated as real. Capital Market Funds is the arranger of the senior loan, not the senior lender.

Bridge debt

Bridge debt is a short loan while a property is leased, renovated, or otherwise prepared for a permanent takeout. It is usually interest-only. The questions that matter are who holds the note, what the extensions actually require, whether recourse survives, and what the takeout has to look like. A page of lender types — bank bridge, debt funds, life-company transitional loans, and private credit — is the bridge landscape. It does not name or rank firms.

The Arizona execution page is bridge financing. Capital sourced from private investors is still not Capital Market Funds lending its own paper. If the asset is already a permanent file, bridge is the wrong layer and the senior-debt guide is the right one.

Construction debt

Construction debt, when a project is far enough along to be a loan rather than a hope, is arranged with the lender that will hold the loan and fund the draws. Capital Market Funds does not fund construction draws and does not keep a construction-administration desk. A ground-up land development loan is not a product on this site. The Arizona reading is Arizona construction financing, with city pages under that index, and a construction loan checklist.

Substantial rehabilitation and new multifamily that truly belong in a HUD program are 221(d)(4), originated with a HUD-approved lender. That is not a generic construction counter, and we do not claim MAP or LEAN approval. A value-add apartment that is interest-only during a renovation can still be a life-company or bridge loan. The label on the tombstone controls. We do not rename it to win a search.

Mezzanine and preferred equity

Mezzanine debt sits behind the senior mortgage, often secured by a pledge of equity rather than a second lien on the real estate. Preferred equity is an ownership slice with a priority return. Neither is a mortgage in the same way, and neither is funded by this firm. Both are arranged through capital partners, and only after the senior lender has said the layer is allowed. Remedies, accrual, and intercreditor terms are counsel's reading. This page is not legal advice.

The Arizona page for that layer is mezzanine and preferred equity. If the senior loan can simply be larger, adding a second layer adds cost and consent risk. Say that before you collect two term sheets.

SBA, for owner-users

SBA 504 is two loans plus borrower equity. A third-party lender, often a bank, makes the first mortgage. A certified development company makes the 504 loan, funded by a debenture SBA guarantees. Capital Market Funds is neither the SBA lender nor the CDC. The structure, occupancy rules, and the debenture prepayment factor are on the 504 quick reference. The arrangement page is Arizona SBA 504.

A 504 request is for a business that occupies the building. An investment property leased to unrelated tenants is a conventional commercial mortgage, not a 504 application with a small owner suite added on. SBA 7(a) is a different guarantee, arranged with an SBA lender, and it is not this firm's paper. The comparison is 7(a) versus 504, and the arrangement page is Arizona 7(a). Rural owner-users who are outside 504's map sometimes look at a USDA Business and Industry guarantee, arranged with a USDA-approved lender. That program is a separate page. This firm does not issue the guarantee.

HUD and agency

Agency debt on this desk means Fannie Mae and Freddie Mac multifamily, placed with the lender that executes the program. Capital Market Funds is not a Fannie Mae DUS lender and not a Freddie Mac Optigo seller/servicer. HUD/FHA — 223(f) for existing rental, seniors, and healthcare, 221(d)(4) for substantial rehabilitation and new multifamily, and 232 for residential care — is originated with a HUD-approved lender. The agency page and the HUD page keep those limits.

Agency and HUD are not data-center loans, not hotel loans unless a specific program says so, and not a way to finance land. Multifamily that is still in lease-up is usually bridge until a takeout exists. Caps and mission goals published by the federal regulator are context. They are not a dedication of proceeds to any one originator.

How a file is matched, then arranged

The match is the asset, the occupancy, the purpose, and the clock. A leased industrial building with a long tenant is a senior permanent conversation. A dark building with a business plan is bridge, or it is not financeable yet. An owner-user buying the building it operates from is a bank loan or, sometimes, 504. An apartment with stable collections is agency, HUD, or life company. A sponsor who needs proceeds above the senior box, and whose senior lender will allow it, is the mezzanine conversation. Writing all of those as one product would be false.

Arranging means Craig takes the rent roll, says which layer fits, packages the request, and stays through closing with the capital source. It does not mean the firm appears as the lender on the note. The calculator can size a senior loan from NOI and a rate you type. It does not price mezzanine, a construction interest reserve, or an SBA debenture. The FAQ states what the firm will not do, including rankings and unpublished fees.

City readings are Phoenix, Scottsdale, Tucson, Mesa, Chandler, Tempe, Gilbert, Glendale, and Peoria. The license page is the Arizona commercial mortgage banker. The map of who provides the debt is the Arizona capital markets guide.