Do you lend on a vacant restaurant building?

Often, yes. Second-generation restaurant space with kitchen infrastructure in place can re-lease to a new operator. We review the location, the condition of the systems and the plan to re-tenant it.

Can a restaurant or retailer buy its own building with your loan?

Yes. Along with tenant-occupied properties, we finance owner-occupied retail and restaurant buildings. We will ask whether you are an existing operator opening another location, an existing operator relocating, or a new concept. We prefer at least 2 years of strong financials (P&Ls, operating statements, business tax returns if available, and cash reserves for slower months). Start-ups can be approved too, but should expect to bring at least 10% more down payment; that is not always the case, but terms may adjust without a performance track record. We finance the real estate only, not equipment or working capital, and every loan is subject to underwriting.

Can you finance a strip center with vacancy?

Yes. Lease-up is one of the most common reasons for a retail bridge loan. Share the rent roll, the vacant bays and your leasing plan.

How do lease expirations affect the loan?

We look at how much income rolls during the loan term and the plan for each key tenant. Near-term rollover is a common reason owners use a bridge loan before refinancing.

Does the lease type matter?

Yes. Triple-net (NNN) leases shift taxes, insurance and maintenance to tenants, while gross leases leave more cost with the owner. We underwrite the income the owner actually keeps.

Can the loan fund tenant improvements or facade work?

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.

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.

Retail & Restaurant Property Bridge Loans

Retail and Restaurant Property Bridge Loans

Veraciti Capital makes first-lien bridge and hard money loans with its own money on tenant-occupied and owner-occupied retail and restaurant real estate in DC, MD, VA, DE, PA, NJ and NC: strip centers, storefronts, freestanding retail and restaurant buildings, including properties with vacancy or leases coming due, subject to underwriting.

Speed

Limited Paperwork

No Full Appraisal

No Minimum Credit Score

Quick Closing

Our Own Money

Balance-Sheet Lender

Financing the real estate, not the business

We finance retail and restaurant property: the land and building, whether it is leased to tenants who run their businesses inside or occupied by the owner's own business. We also finance owner-occupied retail and restaurant buildings, where the operator owns the real estate it uses. We do not make equipment or working-capital loans. Either way, the questions are what the space is worth, how secure the income is, and how quickly the space could be re-leased if the occupant leaves.

Banks often hesitate on smaller retail and restaurant properties, particularly when a center has vacancy, a major tenant's lease is about to expire, or a restaurant space sits dark after an operator closed. Those are the situations where a short-term bridge loan earns its keep.

Retail and restaurant bridge loan scenarios

Strip center with vacancy. Buy or refinance a neighborhood center with empty bays, then lease them up before moving to long-term debt.
Anchor or major tenant rollover. A lease expiration or a departing anchor makes a permanent loan hard to get until the space is backfilled or renewed.
Second-generation restaurant space. A vacant restaurant building with hood, grease trap and plumbing already in place, waiting for a new operator.
Freestanding retail or former bank branch. Single-tenant buildings on good corners that are vacant, being repositioned or changing use.
Storefront purchase on a main street. Smaller street-retail buildings that trade quickly and need a lender who can keep pace.
Refinance or cash-out. Replace a maturing loan or fund tenant improvements and facade work.

How we underwrite retail and restaurant property

Rent roll and lease abstracts. Each tenant's rent, remaining term, renewal options, rent increases and any co-tenancy or exclusive-use clauses that could affect the center.
Lease structure. Whether leases are triple-net (NNN), modified gross or gross, and how much of taxes, insurance and common-area maintenance the landlord actually recovers.
Tenant mix and durability. Service, food and necessity tenants behave differently from soft-goods retail. We look at how long tenants have operated and how exposed the income is to one business.
Rollover schedule. How much of the income comes up for renewal during the loan term, and the plan if a key tenant does not renew.
Location fundamentals. Traffic counts, visibility, access, parking, signage and the surrounding trade area.
Restaurant-specific items. Kitchen exhaust and hood systems, grease traps, gas service, seating capacity and the cost to re-tenant the space for another food user.
Re-leasing costs. Realistic tenant improvement allowances, leasing commissions and downtime for vacant or rolling space.

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.

Restaurant buildings: what makes them different

Restaurant real estate carries more of its value in the building's infrastructure than most retail. A space with a working exhaust hood, fire suppression, grease interceptor, adequate gas and electrical service and permitted seating can be re-leased to another operator far faster and cheaper than a shell that has to be built out from scratch. When a restaurant tenant leaves, the next tenant is usually another food user, so we look closely at what stays with the building and what leaves with the operator. Drive-thru lanes, patio space, parking ratios and late-night access also matter, because they shape which concepts the site can attract.

What to send with a retail or restaurant deal

Rent roll with lease start and end dates
Copies or summaries of the major leases
Trailing 12-month operating statement, if available
Recent tax and insurance bills
Site plan or floor plan with bay sizes
Photos of the property and vacant space
Leasing plan and any letters of intent
Improvement budget, if any

Send what you have; we will tell you quickly what else matters for your deal and, when it fits, issue an indicative term sheet typically within 24 hours of intake review.

Retail and restaurant 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.

Property types and conditions we consider

Neighborhood and strip shopping centers
Single-tenant freestanding retail
Main-street and corner storefronts
Restaurant and quick-service buildings
Former bank branches and pad sites with buildings
Multi-tenant retail with partial vacancy
Properties with near-term lease expirations
Dark restaurant spaces awaiting a new operator

We lend on retail and restaurant property in Washington DC, Maryland, Virginia, Delaware, Pennsylvania and New Jersey across the Mid-Atlantic, and in North Carolina.

Plan the lease-up and the exit

Most retail and restaurant bridge loans are repaid by a long-term bank or investor loan once occupancy and lease terms support it, or by a sale. Permanent lenders usually want to see signed leases with meaningful remaining term, tenants paying rent, and limited rollover in the near future. Build in time to sign tenants, complete improvements and collect a few months of rent. With a term of 12 months, plus one optional 6-month extension, we will walk through the leasing timeline with you during the review so the loan fits the plan.

Submit a retail or restaurant deal

Start the commercial loan application and choose Retail / Restaurant; it asks for building size, tenants, occupancy, lease type, NOI and restaurant history. Brokers can submit through our Broker Program. For buildings with apartments above the storefronts, see mixed-use loans; see also commercial bridge 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)