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Commercial Building

Commercial mortgages

Specialized lending to help enable your commercial development projects

What we do

Protective originates and manages commercial real estate investments with a focus on stabilized, fixed rate assets and a portfolio in excess of $10 billion. All investments are made as part of Protective's overall investment strategy. Protective's experienced team works with commercial real estate developers and investors across the United States to provide financing solutions for their real estate investments through its extensive correspondent network.

Our lending focus

Protective specializes in making real estate loans secured by high-quality commercial real estate assets to best-in-class sponsors across core property types. This includes multi-family properties, industrial warehouse or distribution properties, grocery-anchored retail centers, single-tenant credit industrial properties, medical office buildings and seniors housing properties.

Commercial mortgage guidelines and criteria

Protective deploys roughly $1.5 billion annually on commercial real estate debt. A high-level outline of our lending criteria and terms are below:
  • Loan size: $3 million to $50 million (per asset)
  • Loan to value: Up to 75%
  • Debt service coverage ratio: 1.20x minimum (on a 25-year basis)
  • Term: Balloon loan terms range from 3 to 15 years and fully amortizing loan terms range from 10 to 25 years
  • Pricing: Fixed coupon at spread over Treasuries (locked at application)
  • Amortization: Up to 30 years
  • Interest only: Available
  • Forward rate lock: Available (up to 12 months with a rate premium or fee)

Commercial mortgage programs

Protective offers two loan programs.
    Long-term, fixed-rate loans structured on fully amortizing or balloon. Permanent loans are secured by best-in-class, stabilized commercial properties with an emphasis on sponsorship.
    Yield-enhancing real estate investment on ground-up development or acquisition/rehab deals. Protective's Participating Loan Program provides high-leverage financing for value-add acquisitions and ground-up commercial developments with clearly defined and executable value creation strategies.

Financing available for select property types

Protective focuses principally on property types within these segments:
Multi-family properties
Projects in this category focus on high quality, multi-family dwellings. Properties should have a stable operating history and experienced management.
Industrial warehouse or distribution properties
We finance properties with long-term leases to credit tenants or owner-occupants. Preference is shown to concrete tilt-up, minimum 28 foot ceiling heights and 15% or less office finish in industrial park locations or well situated from a geographic perspective.
Grocery-anchored retail centers
The focus is on retail centers anchored by a regional or national grocer on a long-term lease. 
Freestanding single-tenant
Protective has a strong focus on properties with long-term leases to credit tenants.
Medical office buildings
Protective looks for properties that are doctor-owned with a loan and/or  lease guaranty or properties with a long-term lease to a credit tenant. Preference is shown to properties in close proximity to a hospital campus.
Seniors housing
Stabilized, private-pay properties in the independent, assisted living and/or memory care sector with an emphasis on the sponsor. 
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Additional guidelines and materials

Assumption guidelines
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Preview the requirements for the assumption of mortgage loans.
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The forms you need in one convenient location.
Approved firms
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We work with a variety of firms across different categories.