Deal at a Glance
| Loan Amount | $725,000 |
| Property | Commercial condo unit (one of a multi-unit portfolio) |
| Location | Los Angeles Arts District, California |
| Transaction | Refinance |
| Lender | a community bank |
| Rate, Years 1-5 | 7.50% fixed |
| Rate, Years 6-10 | Prime, floating, 7.50% floor |
| Amortization | 30 years |
| Term | 5 years with one 5-year renewal option, balloon at month 60 |
| Monthly Payment | $5,069.31 |
| Minimum DSCR | 1.25x throughout the loan term |
| Maximum LTV | 46% |
| Prepayment | Step-down 5% / 5% / 2% / 1% / 0% by year; waived if refinanced with a community bank |
| Commitment Fee | $5,437.50, non-refundable |
| Guaranty | Personal guaranty of principal(s)/beneficial owner(s) |
| Closed | Q1 2024 (commitment dated December 2023) |
The Deal That Walked in the Door
We are Commercial Lending Solutions, a commercial mortgage brokerage based in Los Angeles, and this deal was part of a larger commercial condo portfolio refinance, an ownership group holding multiple individual condo units and refinancing them across several lenders based on each unit's own characteristics. This particular unit sits near the LA Arts District, a submarket that has drawn a steady mix of creative-office, light-industrial, and retail condo buyers over the past decade. This unit's bank refinance ultimately closed with a community bank we work with regularly on commercial condo and small-balance bank financing across Los Angeles and California.
Commercial condo ownership means each unit can carry its own loan, its own lender relationship, and its own terms, even when the same ownership group holds several units in the same or nearby buildings. That flexibility is exactly what let this unit close with a bank whose pricing and structure fit this specific asset, independent of what was happening with the rest of the portfolio. Commercial Lending Solutions specializes in bank refinancing and portfolio financing for commercial condo owners and investors across Los Angeles and the broader California market.
What Made It Hard
- Structuring one unit's financing independent of the broader portfolio. With multiple condo units under common ownership, each unit needed its own underwriting, appraisal, and lender relationship rather than forcing all units into a single blanket facility.
- Meeting a conservative loan-to-value ceiling. At a maximum 46% loan-to-value, this bank's underwriting was notably more conservative than a typical commercial bank loan, requiring the deal to be sized carefully against the unit's appraised value.
- Managing lease assignment and estoppel requirements. With the unit generating lease income, the lender required all existing and future leases assigned as additional security and the right to demand tenant estoppel certificates, adding real coordination on the tenant side.
How We Ran the Process
Trevor Damyan, a California-licensed commercial mortgage broker (CA DRE 02244836) with Commercial Lending Solutions, placed this unit's refinance with a community bank, with the loan commitment issued December 12, 2023 and closing in early 2024:
- $725,000 secured by a first deed of trust, assignment of rents and leases, and a UCC-1 filing against the condo unit
- 7.50% fixed for the first five years, then floating at the prime rate for years six through ten, subject to a 7.50% floor that guarantees the rate never resets lower than where it started
- 30-year amortization with monthly payments of $5,069.31, structured as 59 payments followed by a balloon at the 60th month unless the borrower exercises the 5-year renewal option
- A minimum 1.25x debt service coverage ratio throughout the loan, with the bank retaining discretion to increase the rate rather than declare default if coverage fell short
- A conservative 46% maximum loan-to-value, based on an independent appraisal satisfactory to the lender
- A step-down prepayment penalty: 5% in year one, 5% in year two, 2% in year three, 1% in year four, and no penalty in year five, with the penalty waived entirely if the loan is refinanced with a community bank itself
- Lease assignment and approval rights: all existing and future leases assigned to the lender as additional security, with estoppel certificates available on request and lender approval required for any new leases
- A personal guaranty from the principal(s)/beneficial owner(s), plus a demand deposit relationship requirement directing rental income through a community bank
The loan closed on schedule as one piece of the ownership group's larger multi-unit refinance effort, giving this specific condo unit a fixed-rate facility structured around its own appraised value and lease income.
"What made this one interesting wasn't the loan size, it was the discipline to underwrite each condo unit on its own merits instead of trying to jam a whole portfolio into one lender's box. That approach is what got this unit a conservative, fixed-rate structure that actually fit its value and lease income."
Why We Won This One
Treating each condo unit as its own underwriting exercise, rather than trying to force a single blanket lender across the entire portfolio, is what let this unit access pricing and terms suited specifically to its own value and income. Different units in a commercial condo portfolio often have different tenant profiles, values, and loan sizes, and matching each one to the right lender independently produces better outcomes than a one-size-fits-all approach.
Working within the bank's conservative 46% loan-to-value ceiling, rather than pushing for a higher-leverage lender that might have carried worse pricing or structure, kept this piece of the portfolio refinance moving cleanly through underwriting without renegotiation.
Is This Structure Right for Your Deal?
If you own multiple commercial condo units and want each one financed on terms that fit its own value and tenant profile, we can help structure that across your whole portfolio. We arrange permanent loans and owner-occupied and investment commercial financing from a network of more than 1,000 capital sources.
Apply for financing or call us at 310.708.0690 to talk through your condo portfolio.
This is one of 32 closings we have arranged in Los Angeles County. Read about how we work as a Los Angeles commercial mortgage broker, see our Los Angeles commercial mortgage loans, or browse all 46 California closed deals.
Trevor Damyan is a commercial mortgage broker at Commercial Lending Solutions with a background in structured finance at CBRE and Marcus and Millichap Capital Corporation. He specializes in bridge loans, construction financing, SBA programs, DSCR loans, and complex capital structures for investors and developers across all 50 states.
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