Our team sold a $4,000,000 Super 8 motel with 48 rooms and land size 1.5 acre in Northern Alberta. Our team member had been working hard representing both buyer and seller, and assisting with financing, and closed this deal in March 2018.
There are three types of commercial mortgages:
Business loan is not the same as commercial mortgage and it is not related to a property. To qualify for a business loan, buyers need to provide two years business financials, and prove the business is making enough profit to cover monthly payment of loan. Business loan usually requires 50%+ down payment, and interest rate is usually 1 to 2% higher than commercial mortgage interest rate, due to higher risk for business loan. Instead of applying for a business loan, most buyers refinance their residential property to buy a business.
One important buyer and tenant conditions in commercial leasing and sales is "subject to all regulatory permits". There are several types of permit - development permit, building permit, and permit for a specific business use such as daycare and school permit, auto body permit, etc. Many business uses may also have other specific requirements such as parking requirement, fire code/two hours fire wall for restaurant and daycare, specific building code for daycare/school and auto body, distance requirement to other business, business hours, etc. For more information, please speak to one of our commercial experts.
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