> Commercial mortgages make it nearly impossible to change a property in this manner
that's a contractual issue, rather than an engineering issue. This can be fixed with a stroke of the pen.
that's a contractual issue, rather than an engineering issue. This can be fixed with a stroke of the pen.
If I'm a bank holding a commercial mortgage, it's very finely honed to minimize my risk; as part of that, I contractually limit what can be done with the building.
Why would I, as a lending institution, throw that security away for something much riskier? If the emptying out of commercial buildings that we saw during the pandemic accelerated, that might have provided the incentive. But it seems like that trend line isn't going to continue in force.
I think converting high density commercial properties to residential is a great idea in a lot of cities. But ultimately it's going to be done almost exclusively in buildings that are mortgage free.
Not at all. Your commercial mortgage lender will always help you increase the productivity of your asset. Phone call. Excel docs. Talk terms. Lawyers. Done.
If you don't know this, nobody loaned you $#,#00M and you'll never need this advice