How does Jaken Finance Group finance commercial investment property?

Non-owner-occupied bridge at 8.99%–13.5% IO for value-add or speed; permanent DSCR at 5.75%–10.5% when stabilized NOI and executed leases support the ratio — retail, industrial, and small multifamily within investor scope.

What metrics do commercial underwriters stress-test?

NOI after investor tax and insurance, cap rate vs market comps, vacancy and rollover, scope contingency on rehab, and exit — sale at stabilized cap or DSCR refi at 1.0+ with documented rent roll.

What belongs in a commercial bridge file before LOI?

Purchase contract, three sold comps or rent comps, scope with 10%–15% contingency, entity docs, landlord insurance quote, and written exit — disposition pro forma or DSCR path with lease plan.

Blog

Accelerating Commercial Real Estate Investment Success

Published June 12, 2026 · Updated July 18, 2026

By Jason Taken · Principal, Jaken Finance Group

Commercial CRE underwriting — NOI, cap rate, bridge at 8.99%–13.5% IO, DSCR 5.75%–10.5%, asset-class sizing, and file package for non-owner-occupied deals.

Commercial real estate rewards investors who underwrite NOI, cap rate, and exit before they bind debt — not sponsors who chase headline yield without reconciling seller pro formas. Jaken Finance Group finances non-owner-occupied investment property nationwide: 8.99%–13.5% interest-only bridge when collateral needs value-add or speed, and 5.75%–10.5% DSCR permanent when executed leases and stabilized cash flow support the file. This guide maps asset-class differences, sizing logic, and the package underwriters expect on small commercial acquisitions.

Commercial vs residential investor debt

Factor	Small commercial (investor)	SFR / small multifamily
Sizing anchor	NOI, cap rate, DSCR	Rent, ARV, LTC
Bridge rate band	8.99%–13.5% IO	Same on qualified rehab
Permanent band	5.75%–10.5% DSCR	Same when leased
Typical hold	Value-add → stabilize → refi or sell	Flip, BRRRR, or turnkey hold
Entity	LLC standard	LLC standard

Commercial property loans by asset class · Bridge loans hub · DSCR hub.

Asset classes — what underwriters weight differently

Retail and mixed-use

Strip centers and inline retail size on NNN vs gross lease structure, tenant credit, and remaining term. Value-add bridge fits vacant bays, facade refresh, or tenant rollover — not stabilized Walgreens-anchored centers banks already compete for.

Signal	Bridge (IO)	DSCR permanent
Vacant or dark bay	Yes — scope + lease plan	No — need executed lease
Single tenant, 5+ year remaining	Rarely — bank path	Yes at 1.0+ DSCR
Heavy TI allowance in scope	LTC on all-in basis	After CO and lease

Industrial and flex

Warehouses and flex space often carry longer WALT and lower management intensity — underwriters focus on clear height, dock count, environmental, and market rent vs in-place. Bridge funds roof, dock levelers, or office build-out before permanent debt sizes on stabilized NOI.

Small multifamily (5–50 units)

Same stack as residential multifamily at Jaken Finance Group scale: bridge for vacancy, unit turns, or systems; DSCR when rent roll and T-12 reflect investor ownership costs. Do not use seller property tax on your pro forma — pull investor/landlord bills from the treasurer.

Office (investor scope)

Suburban office and medical condo investments require honest vacancy, TI reserves, and lease-up timeline. Thin deals fail when bridge matures before DSCR seasoning — confirm 6–12 months from note date on permanent programs before you close bridge.

NOI and cap rate — reconcile before LOI

Net operating income = collected rent minus operating expenses the investor pays — not mortgage, not capex reserve unless modeled separately.

Line item	Common seller mistake	Investor file
Property tax	Owner-occupied or stale assessment	Current landlord tax bill
Insurance	Seller policy premium	Investor/landlord quote
Vacancy	0% or 3% market average	5%–8% on turnover product
Management	Self-managed assumed	8%–10% if third-party
Repairs	Trailing average hides deferred	Scope + capex reserve

Cap rate = NOI ÷ value. Underwriters compare in-place cap vs stabilized cap after scope — if stabilized cap is below market, either basis is too high or rent assumptions are aggressive.

Worked example — $1.2M mixed-use value-add

Assumptions: $950,000 purchase + $250,000 rehab = $1,200,000 all-in. Stabilized NOI $96,000/yr → 8.0% cap on $1,200,000 basis. Bridge 75% LTC → $900,000 at 11% IO ≈ $8,250/mo during 8-month hold + lease-up ≈ $66,000 carry.

Line	Amount
Stabilized value at 7.5% market cap	$1,280,000
Sale costs (~6% commercial)	−$76,800
Net sale	$1,203,200
All-in basis	−$1,200,000
Carry + closing (approx.)	−$85,000
Spread (pre-tax)	~$(81,800) without refi

This deal fails on sale-only exit — the investor path is DSCR refi at 75% LTV on $1,280,000 → $960,000 note at 7.75% ≈ $7,450/mo PITIA vs $8,000/mo gross rent (DSCR ~1.07). Model both exits before you lock scope; commercial spread lives in NOI growth, not purchase discount alone.

Bridge vs DSCR — decision at LOI

Signal at purchase	Start with	Why
Vacancy, deferred maintenance	Hard money IO	Collateral not DSCR-ready
Full rent roll, clean T-12	DSCR	No IO burn
Light TI, 60-day lease plan	Bridge + refi letter	Speed now, permanent at seasoning
Owner-occupied intent	Neither	Jaken Finance Group — non-owner-occupied only

Mis-matching product destroys returns — IO at 8.99%–13.5% on a stabilized asset you could have bought on DSCR at 5.75%–10.5% erases year-one cash flow.

File package — before term sheet

Document	Purpose
Purchase contract / LOI	Price and timeline
Rent roll + T-12	In-place NOI
Sold comps or rent comps	Value / rent support
Scope + bids (if value-add)	LTC, draw schedule
Entity docs	LLC OA, EIN, good standing
Exit letter / pro forma	Sale cap or DSCR path
Environmental (if industrial)	Phase I; Phase II if triggered
Insurance quote	Landlord/commercial policy

Incomplete files queue behind complete packages — one PDF folder before submission.

Draw schedule — commercial rehab capital

Value-add commercial releases rehab in tranches like residential bridge:

Milestone	Typical release	Investor action
Closing	Purchase wire + partial holdback	GC mobilizes
Rough-in / shell	Per approved scope	Draw packet 48 hrs before milestone
TI / tenant build	Subsequent tranches	Photos + invoices
CO / final inspection	Remaining holdback	Schedule early — delays burn IO

Each draw takes 3–5 business days after inspection. Scope without 10%–15% contingency is the primary reason equity absorbs overruns.

Entity vesting — commercial files

Most commercial investment acquisitions close in an LLC. Mismatch between personal name and entity at DSCR refi can reset seasoning on some programs.

Document	Common defect
Operating agreement	Name mismatch vs contract
EIN letter	Missing
Good standing	Expired certificate
Insurance	Wrong policy class for tenant use
Rent deposits	Personal account vs LLC operating

Vest correctly at acquisition — not at permanent debt.

Auction, off-market, and distressed commercial

Courthouse steps, lender REO, and off-market pocket listings reward 7–14 business day close capability.

Acquisition type	Why bridge fits	File priority
REO / special servicer	Certainty of close	POF, entity ready
Tax sale / redemption	Hard deadline	Scope for code cure
Vacant strip with lease-up plan	Bank rejects collateral	Rent comps + TI budget
Environmental flag	Bank timeline	Phase I in file; scope for cure

Hard money for code violations · Commercial real estate financing.

Extension and maturity — plan before close

Bridge notes carry 6–18 month terms. Pre-negotiate extension options at origination.

Scenario	Action
Lease-up delayed 90 days	Extension fee + updated rent roll
DSCR seasoning not met	Bridge extension or partial paydown
Scope overrun	Equity injection or scope cut
Cap rate expansion	Stress NOI −10% before extending

Commercial bridge is bridge debt — indefinite IO without exit is a liquidity trap, not a strategy.

Risks to model honestly

IO carry — each month at 8.99%–13.5% without rent burns spread
Tenant rollover — one dark bay can erase pro forma NOI
Cap rate drift — rising rates compress values; size exit on conservative cap
Environmental — industrial and older retail need Phase I; surprises delay refi
Seasoning — DSCR may need 6–12 months from bridge note date
Extension fees — budget 0.5–1 point on thin spreads

When commercial bridge is the wrong tool

Fully leased, stabilized asset with clean T-12 — start with DSCR
Owner-occupied purchase — outside Jaken Finance Group scope
No documented exit — bridge without sale or refi path
Negative spread after carry and TI — pass or renegotiate basis