Blog Post

Cornovus Capital, a Cincinnati based commercial real estate finance advisory firm, is pleased to announce the closing of a $37.4 million construction loan for the redevelopment of office buildings into multifamily housing.  The borrower will use the financing to convert the recently acquired office buildings, which were constructed in the early 1980s, into 129 apartments as well as add 97 rental townhomes on the 10.86-acre site. Cornovus Capital advised and arranged the loan through a national, non-bank commercial mortgage lender.  The loan featured non-recourse construction debt, competitive rates, increased loan proceeds and upon CO, the project will roll into an interest only Mini-Perm for up to 36 months. For more than 25 years, Gerard Dehner, Managing Partner, Cornovus Capital, has arranged transaction...

An attractive resource for business and commercial real estate borrowers SBA 7(a) lending is a fantastic resource for borrowers in industries including hospitality, medical, assisted living/skilled nursing, retail, manufacturing restaurants and more. Its name comes from the narrative section of the Small Business Administration Act, which authorizes the agency to fund small business. Applicants must meet certain eligibility criteria including occupancy and/or use of at least 51% of the space. The loan doesn’t come from the SBA; it comes from an approved commercial lender, and you can find those easily within a quick internet search. The attractiveness to borrowers is the range of loan sizes, long repayment terms and relatively low-interest rates. The attractiveness to lenders is that up to 75% of the...

SBA offers financing through a lot of different programs; each with its own peculiarities and specificities. While all financing products are equally important and crucial, 7(a) and 504 are two of the most popular programs as they offer flexibility, lower down payments, and favorable prepayment terms. Even though most business owners are savvy and understand the nuances of financing terms, getting a fixed or a floating interest rate on their loan still causes unwarranted complexities.  SBA approved lenders who sell their loans earn higher premiums on variable (floating rate) loans. This higher profitability in variable rates is countered when lenders typically ask for higher servicing fees for fixed-rate loans. The type of interest rates that banks offer mostly depend on factors...

It’s not unusual for owners to partner with family members on an industrial, hotel or office-based business. In fact, many of our commercial real estate borrowers rely on help from parents, cousins, siblings and in-laws. It seems logical to entrust your business to those closest to you, and when it works, it’s an amazing way to build toward a successful future. But when it doesn’t work, the consequences can be crippling — personally and professionally. When choosing to work with family, there’s a valuable first lesson that applies to businesses of every type: Great character doesn’t always equal great business savvy. Even if your brother-in-law has bookkeeping experience, he may not be well versed in the intricacies of your specific goals and...

Here are three great reasons to consider refinancing your current loan or using the SBA 7(a) for your next acquisition.  Cornovus Capital can connect you with the SBA lender most interested in your kind of work. Not every SBA lender will say “yes” to every kind of loan, which is why you want to talk with the experts at Cornovus Capital.  Reason #1 Borrowers who take out new 7(a) loans prior to October, 2021 will receive the first 6 months of principal and interest payments. Payments will be capped at $9,000/month for a maximum total of $54,000. We consider that “free money.” Reason #2 SBA is waiving the guarantee fees for borrower and lender! The guaranty fee covers the costs of the 7(a) program so...

Cornovus Capital has added a location and collocated with the newly built out offices of Lee & Associates RICORE Commercial Real Estate Services. The location features 20,000 square feet, houses Lee & Associates RICORE a franchisee of Lee & Associates, a rapidly expanding commercial real estate franchisor with over 150 independently owned and operated brokerage and property Management offices throughout the United States & Canada; Lee & Associates Cincinnati Property Management a regional provider of commercial property management services, managing a portfolio of over 8.1 million square feet of office, industrial, and retail assets in the Greater Cincinnati and greater Columbus, Ohio, Northern Kentucky and Indianapolis Indiana. Lee & Associates Cincinnati has provided commercial real estate owners and investors with professional management services since 2001 and is...

Entering into the year, the economy was on the rise. Borrowers were expecting significant liquidity from institutionalized lenders. Private money lenders were anticipated to be most active and the LTC percentages were going to rise, indicating an overall increase in risk appetite. After the worldwide spread of COVID-19 in February and the enforced self-quarantine as a measure; the financial structures were hit abruptly and harshly. This caused a partial to total shutdown of business operations for a lot of companies. Small businesses were among those first affected especially after realizing the key statistic that according to the National Bureau of Economic Research; about three-quarters of the small businesses have the cash to cover just two months of operations at most. https://www.fiercetelecom.com/telecom/centurylink-opens-small-business-focused-150-employee-call-center-louisiana To counter...