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Owner Occupied Commercial Buildings

For a variety of reasons, it might be prudent for your company to own your facility rather than leasing from a third party. Pinnacle's owner occupied commercial building loans are designed to help you finance the purchase of your business property and enable you to benefit from the equity you build in the property while repaying the loan.

Generally, such loans are amortized over 15 years, with an initial 5-year term that matures at the end of 60 months. A first mortgage is taken on the facility to secure the loan, typically with the loan-to-value ratio ranging from 75 percent to 80 percent. A loan for an owner occupied building is primarily analyzed through a review of the profitability and cash flow of the operating company, as well as the personal financial strength of the owner who typically guarantees the loan.

A Pinnacle financial advisor, along with your tax attorney and/or accountant, can help you work through decisions around issues such as whether to lease or buy, and whether the company or the individual business owner should own the property.

Questions about a business loan? Please contact a financial advisor at one of our convenient locations or send us a request through our Contact Us form.