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Every commercial lender knows the feeling.  The bank took the hardest risk on a project – the construction phase. The bank managed the draws, monitored the budget, inspected the site, and shepherded the borrower through permitting delays and cost overruns.  Then, just as the project stabilizes and the loan finally becomes easy to hold, the…

In today’s competitive commercial lending environment, banks must continually balance the risks and rewards of different loan structures. Nowhere is this tension more visible than in the decision to offer a standalone construction loan versus a construction-through-permanent (construction-to-perm or “single close”) loan. Though construction lending inherently involves elevated risk and complexity, banks that opt for…