California Commercial Real Estate Loans

What Capital Partners finances in California

California borrowers come to Capital Partners across most commercial property types: multifamily, industrial, retail and single-tenant net lease, office, self-storage, mixed-use, and 1 to 4 unit residential portfolios held for investment. The firm places senior debt from banks, life companies, CMBS lenders, debt funds, and private lenders, and it arranges mezzanine, preferred equity, and joint-venture equity when a senior loan alone does not complete the capital stack.

The right lender for a California deal depends on more than property type. A bank that likes Ventura County industrial may pass on the same building in the Inland Empire. A debt fund that closes quickly on Los Angeles multifamily may not want a small-balance retail center in the Central Valley. Capital Partners tracks lender appetite by property type, structure, loan size, and geography so a request goes to lenders that are actively quoting that profile.

• Acquisition and fixed-term permanent loans for stabilized assets
• Refinance and cash-out refinance
• SBA 504 and 7(a) for owner-occupied industrial, retail, and office
• Bridge, construction, and private capital for transitional deals
• Mezzanine, preferred equity, and joint-venture equity

Proposition 13 and underwritten property taxes

Under Proposition 13, a change of ownership triggers reassessment, so the seller's tax bill is a poor guide to what a buyer will pay. Lenders underwrite an acquisition using taxes reset to roughly the purchase price, and a long-held property can show a meaningful jump in expenses the day it trades. Net operating income on the offering memorandum often reflects the seller's legacy tax basis, which overstates what a new owner will actually earn.

Refinances are different. A refinance with no change of ownership keeps the existing assessed value, which helps explain why long-term California owners often carry stronger coverage on a refinance than a buyer would on the same property. Transfers of interests in an ownership entity can also trigger reassessment in some cases, so recapitalizations and partner buyouts deserve a tax review before a lender sizes the loan. Run your numbers with reassessed taxes in the DSCR calculator before you rely on a quote.

Deeds of trust, anti-deficiency rules, and guaranties

California commercial loans are typically secured by a deed of trust, and lenders usually enforce through a nonjudicial trustee's sale. California's anti-deficiency and foreclosure rules limit a lender's ability to pursue a borrower personally after foreclosing on real property, so lenders put heavy weight on collateral value and draft recourse documents carefully.

In practice that shows up in the guaranty. Even on nonrecourse loans, lenders require carve-out guaranties for bad acts, environmental indemnities, and completion or carry guaranties on transitional deals. Guarantors are commonly asked to waive certain defenses available under California law. Sponsors should read those waivers with counsel, and a principal can point out where lenders differ on recourse and carve-out scope before terms are signed.

The firm's California track record

California transactions make up most of the 30 published closings on the track record. They span owner-user, net lease, office, industrial, multifamily, and development capital across Southern California, the Central Coast, and the Central Valley. Examples include a $22.15M SBA 504 loan for a light industrial owner-user in Moorpark, a $6M 10 year loan on a single-tenant net lease gym in Santa Ana, and a $4.55M fixed-term refinance of a multi-tenant office building in Westlake Village.

Kevin Heisser, the firm's CEO and founder and a licensed California Real Estate Broker, has worked in real estate and development since 1996. Capital Partners is a California Real Estate Broker under DRE Corporate License 02093339 and arranges commercial purpose loans only.

Bringing a California deal to a principal

California lenders ask for the same core package as anywhere else, plus a few items that come up more often here. Expect questions about seismic risk on older buildings, rent regulation on multifamily, wildfire and flood exposure and the cost of insurance, and any unpermitted work or code issues. Providing a property condition summary and current insurance quote early avoids a late retrade.

For stabilized assets, start with reassessed taxes, a current rent roll, trailing operating statements, and your target proceeds. For development or transitional deals, see the pages on California construction loans and California bridge loans. When the file is ready, submit your deal and a principal will review it.

Published closings

See all 30 transactions

Common questions