Banks and credit unions still write the Arizona owner-user loan: a building the operating company occupies, underwritten to that company's cash flow as well as the real estate. Recourse is common. A deposit relationship may be discussed. The prepay is whatever that institution will sign. Capital Market Funds shops more than one of those quotes. The loan, if it closes, is the bank's asset.
This is not the SBA 504 page. 504 splits the project between a bank first and a CDC second. A conventional owner-occupied bank loan is one lien. Sponsors who want both paths compared should read both pages. The broader occupancy page, which includes life company and CMBS when an owner-user building can clear them, stays at Arizona owner-occupied.
What the bank actually reads
Occupancy is the bank's test, not a number this page sets and not automatically the SBA 51 percent rule. Some banks want the sponsor to occupy most of the building. Some will allow a partial lease-up to a third party if the operating company still carries the debt. We ask the institution instead of guessing. Global cash flow, liquidity after closing, and who guarantees are the rest of the credit.
The published owner-user office in Chandler, $15,600,000 in 2022, includes a coworking tenant. The card does not say the sponsor's occupancy percentage and does not say bank. It is evidence that an owner-user office in Chandler was financed. It is not a bank tombstone and not a template.
Owner-occupied is not every small loan
The Tempe dental cash-out of $745,000 is a single-tenant medical refinance. The card does not say the borrower occupies it. A leased investment building is investment property, even when the loan is small enough for a bank. Size is not occupancy.
City versions of the bank conversation are Scottsdale bank, Chandler bank, and Tempe bank. The 504 structure is SBA 504.
Owner-user paths we compare
| Source | When it fits |
|---|---|
| SBA 504 | Bank first plus a CDC second. A different structure. |
| Owner-occupied, all sources | Life company and CMBS included when they fit. |
| Credit union | A frequent owner-user hold. We are not the credit union. |
| Arizona bank | Investor and owner-user portfolio debt together. |