Florida CRE Financing
Commercial Real Estate Financing in Florida
SBA 504, conventional CRE loans, CMBS, bridge loans, agency multifamily, and construction financing for Florida investment properties and owner-user acquisitions.
Owner-user purchases: 10% down with SBA 504. Investment property: 65–80% LTV.
Florida CRE Loan Types
SBA 504 Loan
LTV: Up to 90% LTV
Term: 25-year fixed (SBA portion)
Best for: Owner-user purchases of industrial, office, or retail
10% down with a fixed-rate 25-year second mortgage from a CDC. Best financing available for Florida businesses buying their own facility.
Conventional CRE Loan
LTV: 65–75% LTV
Term: 5–30 years
Best for: Investment properties: NNN, multifamily, industrial
Standard bank financing for investment property. Rates tied to SOFR, FHLB, or Treasury. Most competitive from Florida community and regional banks.
CMBS / Conduit Loan
LTV: 65–75% LTV
Term: 5 or 10 years (I/O option)
Best for: Stabilized NNN retail, industrial, or multifamily $3M+
Non-recourse, longer I/O periods, and looser underwriting vs. bank loans. Best for investors who want leverage without personal recourse.
Bridge Loan
LTV: 70–80% of as-is value
Term: 12–36 months
Best for: Value-add, lease-up, or transitional assets
Short-term interest-only financing for properties not yet stabilized. Higher rate than permanent debt but enables acquisition of assets conventional lenders won't touch.
Agency Multifamily (Fannie/Freddie)
LTV: 75–80% LTV
Term: 5, 7, or 10 years (30-year amortization)
Best for: 5+ unit apartment complexes
The most favorable permanent financing for Florida multifamily investors. Non-recourse, high LTV, and competitive fixed rates. Requires stabilized occupancy (90%+).
Construction / Mini-Perm
LTV: 65–75% of completed value
Term: 12–24 months (converts to perm)
Best for: Ground-up development and major renovations
Interest-only during construction, converts to permanent financing at stabilization. Requires strong sponsor, detailed proforma, and pre-leasing for commercial projects.
Key CRE Financing Concepts
DSCR
Debt Service Coverage Ratio — NOI divided by annual debt service. Most Florida lenders require 1.20x–1.25x minimum. The higher the DSCR, the more debt you can carry at a given income level.
LTV vs. LTC
Loan-to-Value (LTV) is lender exposure vs. appraised value. Loan-to-Cost (LTC) is used for development projects — lender exposure vs. total project cost. Lenders switch to the lower of the two on acquisitions.
Recourse vs. Non-Recourse
Recourse loans require a personal guarantee — the lender can pursue your personal assets on default. Non-recourse (CMBS, agency) limits recourse to the property itself. Non-recourse is preferred for investment properties.
Prepayment Penalties
CMBS loans have defeasance or yield maintenance prepayment penalties that can be very expensive if you sell early. Bank loans often have step-down or lockout provisions. Understand your exit before choosing a loan structure.
Florida CRE Financing FAQ
What are the main commercial real estate loan types in Florida?
Florida commercial real estate buyers use several loan structures: (1) Conventional CRE loans — 20–35% down, 5–30 year amortization, fixed or floating rate from banks and credit unions; (2) SBA 504 — 10% down for owner-user properties, up to $5.5M, 25-year fixed rate; (3) SBA 7(a) — more flexible use of proceeds, up to $5M, owner-user requirement; (4) CMBS (conduit) loans — non-recourse, 5–10 year term, best for stabilized investment properties $3M+; (5) Bridge loans — short-term (1–3 years), interest-only, for value-add or transitional assets; (6) Construction loans — for ground-up development, typically 12–24 months, convert to permanent financing at stabilization.
What is an SBA 504 loan and how does it work for commercial real estate in Florida?
The SBA 504 loan is the most powerful owner-user CRE financing tool available in Florida. The structure: (1) borrower contributes 10% down (vs. 25–35% for conventional), (2) a Certified Development Company (CDC) provides 40% as a second mortgage at a fixed SBA rate for 25 years, (3) the primary lender provides 50% as a first mortgage. The borrower occupies at least 51% of the property. SBA 504 is available for industrial, office, retail, and mixed-use properties. The fixed-rate second mortgage and low down payment make it the best option for Florida businesses buying their own facility.
What LTV can I get on a commercial real estate loan in Florida?
LTV for commercial real estate loans in Florida depends on property type and loan program: SBA 504 owner-user allows up to 90% LTV (10% down). Conventional investment property loans range from 65–75% LTV. SBA 7(a) for owner-user commercial real estate allows up to 85–90% LTV. CMBS conduit loans are typically limited to 65–75% LTV on stabilized properties. Bridge loans range from 70–80% of as-is value. Multifamily (5+ units) can access agency debt (Fannie/Freddie) at 75–80% LTV with favorable terms.
What DSCR do Florida commercial real estate lenders require?
Most Florida commercial real estate lenders require a Debt Service Coverage Ratio (DSCR) of 1.20–1.25x minimum on stabilized properties — meaning net operating income (NOI) must be 20–25% above the annual debt service. Higher-risk asset types (hospitality, mixed-use, transitional) may require 1.30–1.40x. SBA 504 and 7(a) use a global cash flow analysis for owner-users, so business revenue can supplement property DSCR. Understanding DSCR before making an offer helps buyers right-size leverage and avoid deal failures.
Are there commercial real estate lenders that specialize in Florida?
Yes — Florida's commercial real estate market is served by a mix of national banks, regional banks, community banks, and non-bank lenders. National banks (Bank of America, Wells Fargo, JPMorgan) handle institutional and large-loan transactions. Florida-based regional and community banks (Seacoast Bank, SouthState, Valley National, BankUnited) have deep CRE portfolios and are often the most competitive on middle-market deals ($1M–$15M). CMBS originators (Ladder Capital, Arbor, Ready Capital) handle non-recourse conduit loans. SBA-preferred lenders (Live Oak Bank, Byline Bank, CDC Small Business Finance) specialize in SBA 504 and 7(a) for owner-users.
Discuss Your Financing Needs
Tell us about your acquisition — property type, price, LTV target, and timeline — and we'll point you toward the right capital source for your deal.