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Commercial Real Estate Loans

Commercial Real Estate Loan Types

Whether you are constructing a new commercial property, remodeling, or expanding an existing property, our experienced team of lenders can match you with the right commercial real estate loan for your business. Ask your lender to learn more about the benefits and features of each type of loan.
Definition: You (or your operating business) will occupy at least 51% of the square footage of the building.
Ideal For: Manufacturers, medical practices, professional services, or retailers to purchase or refinance their own building.
How We Underwrite: We focus heavily on the strength of the operating entity. Since your business is the primary tenant, we analyze the cash flow of your operating company to ensure it can service the debt. We evaluate the financial strength of the operating entity and owners as well as the proposed subject property holistically to understand to inform our decision-making.

Definition: You are an investor purchasing a property to lease out to third-party tenants (e.g., a strip mall, office building, or multi-family complex). You occupy less than 51% of the space.

Ideal For: Real estate investors seeking portfolio growth.

How We Underwrite: We focus on Lease Quality and DSCR. We analyze the strength of your tenants, the terms of the lease agreements, and the projected Net Operating Income (NOI) of the subject property. The key metric is the Debt Service Coverage Ratio (DSCR)—ensuring the property generates sufficient Net Income to cover the debt payment on a stand-alone basis, with a healthy margin of excess cash flow.

Note: Maximum Loan-to-Value (LTV) limits are generally stricter for non-owner-occupied loans due to the increased risk profile.

  • Definition: Financing specifically designed for residential properties with five or more units, such as apartment buildings or large residential complexes.
  • Ideal For: Real estate investors and property management firms looking to acquire, refinance, or improve income-generating residential properties within our local communities.
  • How We Underwrite: We prioritize the property's ability to generate consistent rental income. Our analysis focuses on historical and projected occupancy rates, market rent trends in the Inland Northwest, and the Debt Service Coverage Ratio (DSCR) of the subject property. We also evaluate the experience of the property management team and the overall condition of the asset to ensure long-term stability.
  • Definition: A flexible, short-term financing solution used to cover the costs of labor and materials during the construction of a new commercial or residential multifamily building, residential single-family “spec” homes, or a major renovation of an existing building.
  • Ideal For: Business owners and professional home builders who need a "draw-as-you-go" facility to manage cash flow during a build, typically transitioning to a permanent term loan once the project is complete, if being held as an investment.
  • How We Underwrite: We look closely at the "as-completed" appraised value and the detailed construction budget. Our team evaluates the experience of the general contractor and the viability of the project timeline. Because we are a local lender, we often conduct site visits and work closely with you to manage the draw process, ensuring the project stays on track and well-funded.
  • Definition: Specialized lines of credit used for land acquisition or infrastructure development (utilities, roads, etc.).  
  • Ideal For: Local developers and professional home builders who manage a portfolio of projects and need a reliable source of capital to move from raw land to finished lots.
  • How We Underwrite: We focus on the developer’s track record and the specific market demand for the project. Underwriting includes an analysis of the project’s absorption rate (how quickly units are expected to sell) and the quality of the underlying land. As a community bank, we leverage our deep knowledge of local zoning and real estate trends to provide common-sense credit decisions that help our region grow.




A Note on Geography 

State Bank Northwest is a community bank dedicated to our local markets. We primarily finance projects located in Spokane, Spokane Valley, Garfield, Rockford, Colfax, Palouse, and the Eastern Washington region. 

To apply for a State Bank Northwest Commercial Real Estate Loan visit your nearest branch.

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