Do you finance vacant industrial buildings?

Often, yes. Vacancy and owner-user exits are common reasons for an industrial bridge loan. We review the building's functionality, the market for small-bay space and your leasing plan.

What makes a light industrial building easier to finance?

Functional features that broaden the tenant pool: adequate clear height, dock-high and grade-level doors, sufficient power, truck access and yard space, plus a location near major roads.

Will environmental issues affect the loan?

They can. Prior uses such as auto repair, fabrication or fuel storage may need additional review. Tell us about past uses up front so we can scope it early.

Do you lend on contractor yards and outdoor storage?

We review buildings with yard space and outdoor storage where zoning permits the use. The building, the yard and the tenant demand are all part of the analysis.

Can the loan fund building improvements?

It can, depending on the deal. On loans with improvement funds, leverage is measured against total project cost, up to 70% LTC, subject to underwriting.

Can my company buy the building it will operate from?

Yes. We finance owner-occupied industrial buildings as well as buildings leased to tenants. Tell us whether your company is expanding into an additional location, relocating, or just starting out. Companies with an established, successful operating history are more likely to be approved and may receive better terms. Start-ups can still be approved but typically need to bring more capital to close. Subject to underwriting.

Do you finance flex buildings with a lot of office space?

Yes. We look at whether the office-to-warehouse mix matches what local tenants want, the cost to reconfigure suites if needed and comparable flex rents.

What are the rates and terms?

Rates are 10.99% to 12.99% (current typical range; subject to change, market conditions and underwriting), with 2 to 4 points and interest-only payments. Loans typically run $100,000 to $2,000,000; smaller loans, and larger loans up to $5,000,000, are considered case by case, with a term of 12 months, plus one optional 6-month extension.

Is a full appraisal required?

No. A broker price opinion (BPO) or an in-house valuation takes the place of a full appraisal.

Whose money funds the loan?

Ours. Veraciti Capital is a balance-sheet lender that funds loans with its own money. There is no institutional capital behind the loan, so no outside investor guidelines or committees decide your deal.

Light Industrial & Flex Property Bridge Loans

Light Industrial and Flex Property Bridge Loans

Veraciti Capital makes first-lien bridge and hard money loans with its own money on small-bay and light industrial property in DC, MD, VA, DE, PA, NJ and NC: flex buildings, small warehouses, workshops and contractor yards, including vacant buildings and owner-user exits, subject to underwriting.

Speed

Limited Paperwork

No Full Appraisal

No Minimum Credit Score

Quick Closing

Our Own Money

Balance-Sheet Lender

Small-bay industrial: where bridge loans fit

Light industrial property covers a wide range of buildings: multi-tenant flex with office fronts and warehouse space behind, small warehouses and distribution buildings, contractor shops with yard space, and light manufacturing or assembly buildings. The tenants are local and regional businesses such as trades, distributors, service companies and makers. These buildings are often too small for institutional industrial lenders and too specialized or transitional for a quick bank loan, particularly when a building is vacant, an owner-user is moving out, or the property needs work before it can be leased.

A bridge loan finances the purchase or refinance now and gives you time to lease, improve or reposition the building before moving to long-term debt or selling.

Light industrial bridge loan scenarios

Owner-user purchase or exit. A business buys a building to operate from, or a business sells or vacates its building and an investor buys it to lease to one or more tenants.
Vacant building lease-up. Carry an empty or partly empty building while you sign tenants.
Multi-tenant flex repositioning. Update suites, demise space into smaller bays, improve the office fronts and push below-market rents.
Single-tenant rollover. A sole tenant's lease is ending, which makes a long-term loan hard to get until it renews or a new tenant signs.
Value-add improvements. Roof, dock, door, power, paving or yard work that lets the building command higher rents.
Refinance or cash-out. Replace a maturing loan or pull equity for improvements or another acquisition.

Why small-bay industrial attracts investors

Small-bay buildings serve businesses that rarely relocate far: an electrician, a cabinet shop or a regional distributor tends to stay close to its customers and crews. Suites are smaller, so a single vacancy affects a smaller share of income than in a large single-tenant warehouse, and tenants often invest in their own space. On the other hand, small buildings can be older, management-intensive and short on the clear height, power or loading that newer tenants expect. A good bridge plan addresses those trade-offs directly, whether that means improving functionality, re-demising suites to match demand, or simply leasing a well-located building that has been under-marketed.

How we underwrite light industrial and flex buildings

Building functionality. Clear height, loading (dock-high and grade-level doors), power, column spacing, truck access and turning radius, and yard or outdoor storage space. Functional buildings re-lease faster.
Office-to-warehouse ratio. Flex buildings with heavy office build-out serve a different tenant than a bulk shop; we look at whether the mix matches local demand.
Rent roll and leases. Rents per square foot against comparable small-bay space, remaining terms, renewal options and who pays taxes, insurance and maintenance.
Tenant base. Business type, time in place and how dependent the building is on one tenant.
Environmental history. Prior uses such as auto repair, fabrication or fuel storage can raise environmental questions. We ask about past uses early, and some properties need additional review.
Zoning and permitted uses. Whether current and planned uses are allowed, including outdoor storage and contractor yards.
Physical condition. Roof age, paving, doors and docks, fire sprinklers and building systems.
The exit. A long-term bank or investor loan once the building is leased, or a sale to an investor or owner-user.

Paperwork stays limited, valuation is handled in-house or with a broker price opinion (BPO) with no full appraisal, and there is no minimum credit score.

Light industrial loan parameters

Loan size: $100,000 to $2,000,000; smaller loans, and larger loans up to $5,000,000, are considered case by case
Leverage: up to 70% LTV / LTC, first lien
Rate: 10.99% to 12.99% (current typical range; subject to change, market conditions and underwriting)
Origination: 2 to 4 points
Term: 12 months, plus one optional 6-month extension
Payments: interest-only; flexible prepayment
Purchase down payment: typically 20% to 50%
Term sheet: typically within 24 hours of intake review

All terms are indicative and subject to underwriting, valuation and diligence. Not a commitment to lend.

Buildings and conditions we consider

Multi-tenant flex and office/warehouse
Small warehouse and distribution buildings
Contractor shops with yard space
Light manufacturing and assembly buildings
Vacant or owner-vacated buildings
Single-tenant buildings with lease rollover
Buildings needing roof, dock or paving work
Industrial condos held as investments

We lend on light industrial property in Washington DC, Maryland, Virginia, Delaware, Pennsylvania and New Jersey across the Mid-Atlantic, and in North Carolina, where highway corridors and growing suburbs support steady demand for small-bay space.

Leasing industrial space and planning the exit

Small-bay industrial space often leases to local businesses that need it within weeks, but the right tenant may need specific power, doors or yard space, and some will ask for improvements before they sign. Build time into the plan to market the space, complete improvements and collect several months of rent before refinancing. A permanent lender will want to see signed leases, rent being paid and a manageable rollover schedule. With a term of 12 months, plus one optional 6-month extension, we will talk through the leasing timeline with you during the review.

What to send with an industrial deal

Rent roll and lease summaries
Building size, clear height and loading
Site plan showing yard and parking
Prior and current uses of the property
Recent tax and insurance bills
Improvement budget, if any

Submit a light industrial deal

Start the commercial loan application and choose Light industrial / Flex; it asks for building square feet, clear height, occupancy, tenants and NOI. Brokers can submit through our Broker Program. Planning a storage conversion? See self-storage loans; see also commercial hard money loans and small balance commercial loans.

What we don’t lend on

Owner-occupied homes or any property the borrower will live in
Loans for personal, family or household purposes
Ground-up construction or land loans
Second liens or mezzanine financing
DSCR or long-term rental loans (we make bridge loans only)