As an alternative to fixed-rate financing solutions, especially during periods with low interest rates, Meridian provides clients with optimal floating-rate financing solutions for developing, acquiring, refinancing and repositioning commercial real estate properties across the country.
Meridian is a leading arranger of floating-rate commercial real estate mortgage financing for a broad range of property types.
Meridian’s seasoned mortgage finance advisors tailor floating-rate financing for clients with shorter-term investment horizons who are seeking prepayment flexibility and the potential for interest rate savings through floating-rate financing structures.
Our analysts and underwriters thoroughly analyze each client’s investment objectives and work to maximize the short-term benefits of floating-rate financing as part of their comprehensive long-term investment and financing strategy.
An adjustable rate loan will typically fully amortize with no balloon features. These loans may or may not have adjustment caps. The rate is determined by an index plus a margin. The indices used are generally U.S. Treasury bond rates. Rates are adjusted at a certain point in time using either the current rate of the index in question or the average of the index for the prior year. In either event, the index used will correspond to the adjustment term. If the loan is a three year adjustable, then the index used should be the three year treasury index. Some adjustable rate loans are fixed for an initial period of years and then will adjust after that period. For example a 5/1 adjustable is fixed for the first five years and there after will adjust each year. The index used will be the one year treasury rate.