Condo complexes can have commercial space and be eligible for financing as long as the commercial space comprises less than 25% of the square footage of the entire complex.
If commercial space exceeds 25% of the overall space, we have a couple of portfolio lenders that will finance the projects. The rates and terms are nowhere near as competitive as Fannie’s and Freddie’s, however.
Note also: If condo complexes have parking spaces in a parking structure that are not assigned to tenants, the parking spaces are considered “commercial space” as well.
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