A comprehensive analysis of recent commercial lending activities in Detroit, MI unveils a bustling real estate landscape marked by the successful closure of 634 loans in the last 90 days. These transactions showcase a broad spectrum, ranging from $500,000.00 to an impressive $56,500,000.00, with the highest loan amount facilitated for a Commercial Office Space, closed by PGIM INC.
Property diversity is a notable feature, with the predominant types being Retail, Multi-Family, Residential Condo, Vacant – Commercial, and various others. The number of deals per property type is as follows:
– Retail: 16 deals
– Commercial Office Space: 7 deals
– General Commercial: 5 deals
– Multi-Family: 22 deals
– Residential Condo: 48 deals
– Industrial: 9 deals
– Attractions: 1 deal
– Medical Services: 1 deal
– Single Family Residence: 461 deals
– Services: 2 deals
– Vacant – Commercial: 25 deals
The leading commercial lenders in Detroit include Lima One Capital, Flagstar Bank, Kiavi Funding, The Huntington National Bank, JP Morgan Chase, First Merchants Bank, RCN Capital, Dominion Financial Services, and others.
Credit unions and community banks emerge as active players, offering Loan-to-Value (LTV) ratios ranging from 85% for SBA products to 75-85% for debt funds. The average loan amount in Detroit stands at $1.7 million, underlining the predominantly commercial nature of these transactions. The maximum LTV currently offered is 85% for SBA products, and the Debt Service Coverage Ratio (DSCR) requirement averages at 1.25. Origination fees range from 0.5% to 2%.
This dynamic lending landscape positions Detroit as a lucrative hub for commercial real estate activities, with a robust mix of property types and competitive financing terms offered by various national, regional banks, and debt funds.
