Construction Financing for Office Assets
Quick answer
Kismet Kapital structures construction financing for office assets at 55–65% LTC, typically closing in 60–120 days. Underwriting is leasing-driven: in-place income, rollover, TI/LC reserves, and credit profile.
- Product
- Construction Financing
- Asset Class
- Office
- Typical Leverage
- 55–65% LTC
- Typical Close
- 60–120 days
- Term
- 24–48 months (plus mini-perm options)
- Recourse
- Recourse to full or burn-down
Overview
Office capital remains highly structured, with most transactions capitalized through a blend of senior debt, mezzanine, and preferred equity tied to leasing momentum. Construction loans fund vertical and horizontal development on a draw basis, typically capitalized alongside mezzanine debt, preferred equity, or JV equity to reach the sponsor's target leverage. For office assets, construction proceeds are sized against underwriting is leasing-driven: in-place income, rollover, ti/lc reserves, and credit profile. repositioning capital often requires structured debt with hold-back tranches.
Why sponsors use Kismet Kapital for office construction capital
office transactions are typically capitalized with Bridge, Mezzanine, Preferred Equity, Permanent (Selective). Kismet Kapital identifies which of those structures the current lender market will actually fund for your business plan, then runs a competitive process across the desks pricing office risk today.
Terms at a glance
- 55–65% LTC typical proceeds for construction on office assets.
- Executions generally close in 60–120 days.
- Draw-based funding with completion guarantees and contingency requirements.
- Common structures: Bridge, Mezzanine, Preferred Equity, Permanent (Selective).
- Ground-up multifamily and BTR
- Last-mile and distribution industrial
Key facts
Kismet Kapital typically closes construction financing on office assets in 60–120 days.
Construction Financing for office assets generally size to 55–65% LTC.
Office capital stacks commonly include Bridge, Mezzanine, Preferred Equity, Permanent (Selective).
Frequently asked questions
What leverage is available on construction financing for office assets?
Construction Financing for office assets typically size to 55–65% LTC, with the exact proceeds driven by in-place income, business plan, and sponsor experience.
How long does a construction loan on office take to close?
Most office construction executions close in 60–120 days from signed term sheet.
How do lenders underwrite office assets?
Underwriting is leasing-driven: in-place income, rollover, TI/LC reserves, and credit profile. Repositioning capital often requires structured debt with hold-back tranches.
What capital structures work best for office assets?
Office Assets are typically capitalized with Bridge, Mezzanine, Preferred Equity, Permanent (Selective). Kismet Kapital engineers the mix that maximizes proceeds without breaking the business plan.
When is construction the right product for an office deal?
Senior construction debt for ground-up development across multifamily, industrial, mixed-use, and hospitality. It fits office transactions such as ground-up multifamily and btr and last-mile and distribution industrial.
Engage
Ready to structure your next deal?
Submit your transaction or schedule an introduction call. Confidential review within 48 hours.