Loan Product
Commercial Construction Loans Nationwide | Ground-Up & Heavy Renovation
Ground-up and heavy-renovation construction loans for commercial real estate developers — interest-only during the build, flexible draw schedules, with take-out permanent or bridge financing teed up at completion.
Loan Size
$5M – $200M
LTC
Up to 75%
Term
18 – 36 months
Rate Range
8% – 13%
Structure
Interest-only, draws
Close Time
4 – 8 weeks
Commercial construction loans fund the vertical development or substantial renovation of income-producing real estate. Rad Capital Group sources construction debt nationwide from regional and national banks, debt funds, life companies, and HUD 221(d)(4) lenders for projects between $5 million and $200 million.
Standard structures include 18- to 36-month interest-only terms (with extension options), up to 75% loan-to-cost on most asset types, and 65–70% loan-to-value as completed. Pricing runs 8% to 13% on non-bank executions and SOFR + 250–400 bps on bank executions, with origination fees of 1–2%.
We finance ground-up hotels, multifamily, industrial, self-storage, mixed-use, medical office, and retail — plus heavy value-add renovations such as gut rehabs and adaptive reuse. We coordinate the take-out: bridge financing during lease-up, agency permanent for multifamily, CMBS or life-co debt for stabilized commercial assets, and SBA 504 for owner-occupied builds.
Our in-house underwriting front-loads the GC contract review, hard-cost contingency, interest reserve, completion guaranty, and recourse burn-off triggers — saving developers weeks of back-and-forth during diligence.
Frequently Asked Questions
What loan-to-cost can I get on a construction loan?
Most lenders cap leverage at 70–75% LTC for ground-up commercial construction, with stronger sponsors and lower-risk asset types (multifamily, industrial) achieving the upper end.
Do construction loans require recourse?
Bank construction loans typically require full recourse with a completion and carry guaranty. Debt-fund construction loans can be structured as non-recourse with carve-outs, usually at higher rates.
Related Financing
Loan Product
Bridge Loans
Short-term commercial bridge financing for acquisitions, value-add repositioning, and time-sensitive recapitalizations — placed with 150+ direct bridge lenders nationwide.
Loan Product
Mezzanine Financing & Preferred Equity
Subordinate mezzanine debt and preferred equity to bridge the gap between senior loans and sponsor equity — increasing leverage to 85–90% on acquisitions, refinances, and development projects nationwide.
Loan Product
SBA Loans (504 & 7(a))
Government-backed SBA 504 and SBA 7(a) financing for owner-occupied commercial real estate — up to 90% LTV with 20–25 year amortization in all 50 states.
Asset Class
Multifamily Financing
Agency, bridge, CMBS, and construction loans for multifamily — conventional apartments, affordable housing, student housing, senior housing, and workforce housing in every U.S. market.
Asset Class
Hotel Financing
Bridge, SBA, CMBS, and construction financing for limited-service, select-service, full-service, and extended-stay hotels nationwide — flagged and independent.
Asset Class
Industrial & Warehouse Financing
Bridge, CMBS, bank, and construction loans for industrial, warehouse, logistics, distribution, flex, and cold storage properties in every U.S. market.
Ready to explore construction loans?
Initial term sheets in as little as 2 weeks. Nationwide.