Commercial Real Estate Financing Michigan | Industrial, Warehouse & Manufacturing Property Loans

LVRG Business Funding finances commercial real estate throughout Michigan. We structure industrial property loans, warehouse financing, manufacturing facility purchases, strip mall acquisitions, and commercial refinancing with competitive rates and creative deal structures that actually close.

Contact Charles M. Barr, CEO | 855-998-5874 | cbarr@lvrgllc.com

LVRG Business Funding | 615 Griswold St. Suite 700, Detroit, MI 48226

Michigan Commercial Real Estate Financing: What You Need to Know

You found a warehouse in Sterling Heights that solves your space problem. Or a manufacturing facility in Grand Rapids that doubles your capacity. Maybe it's a strip mall in Troy with tenants already in place.

The question isn't whether the property makes sense. The question is: can you finance it without depleting working capital or getting stuck with unfavorable terms?

Here's what matters for Michigan commercial real estate financing:

Down Payment: As Low as 0% for Qualified Deals

SBA 7(a): Down payments from 0-10% depending on the transaction, property type, and business qualifications. Many qualified commercial real estate deals close with minimal down payment, preserving working capital for operations.

SBA 504: Standard 10% down payment. New businesses (under 2 years) or special-use properties require 15% down. Both conditions together require 20% down.

Conventional: Typically 20-30% down payment, though structure varies based on deal specifics and lender requirements.

Example: $2M warehouse in Detroit

SBA 7(a) at 10% down: $200K
SBA 504 at 10% down: $200K
Conventional at 25% down: $500K

The difference between $200K and $500K down stays in your business for equipment, inventory, hiring, or operations.

What Qualifies

Business Requirements:

Established businesses with demonstrated cash flow
Strong debt service coverage (typically 1.20x+)
51% owner-occupancy for SBA programs
2+ years in business preferred (newer businesses may qualify with stronger financials)

Credit Standards:

680+ credit score provides best program access and terms
650-680 workable with compensating factors
Below 650 increasingly challenging but not impossible with strong business fundamentals

Property Types We Finance:

Industrial facilities
Warehouses & distribution centers
Manufacturing plants
Retail buildings & strip malls
Mixed-use properties (51%+ business occupancy)
We do NOT finance office buildings

Timeline: Deal Complexity Determines Speed

Commercial real estate financing timelines vary based on transaction complexity, property conditions, and external factors like appraisals and environmental reports.

SBA Programs: Typically 60-90 days depending on property type, environmental assessment requirements, and documentation completeness.

Conventional Financing: Often 30-60 days, faster for straightforward transactions with clean properties and complete documentation.

What affects timeline:

Appraisal scheduling and completion
Environmental Phase I reports (required for most CRE)
Title issues requiring resolution
Property access and condition
Documentation completeness
Lender underwriting workload

We coordinate every moving part simultaneously—appraisals, environmental consultants, title work, bank underwriting, SBA processing—so delays get identified early and resolved before they kill deals.

Commercial Real Estate Financing Programs

SBA 7(a): Maximum Flexibility

Best for: Businesses needing working capital alongside property financing, or requiring maximum program flexibility.

Key Features:

Down payments as low as 0-10% for qualified commercial real estate transactions
Maximum loan: $5 million
Terms up to 25 years for commercial real estate
Can include: Real estate + working capital + equipment + soft costs in single financing package
Variable rates tied to prime rate

Why this works: Finance the warehouse AND the equipment inside it. Or buy the building AND have working capital for the first year of operations. This program provides flexibility that conventional financing can't match.

0% Down Deals: Qualified businesses with strong financials and cash flow can structure commercial real estate acquisitions with no down payment, allowing 100% of available capital to stay in operations rather than locked in real estate equity.

SBA 504: Lowest Down Payment, True Fixed Rates

Best for: Businesses focused exclusively on property or equipment acquisition who want minimal cash investment and long-term rate certainty.

Key Features:

10% down payment standard (15% for businesses under 2 years OR special-use properties, 20% for both)
SBA portion up to $5-5.5 million (total project can exceed this significantly)
True fixed rates for life of loan (current rates approximately 6-7%)
10, 20, or 25-year terms
No balloon payments, fully amortized
Limited to real estate and equipment (no working capital component)

Structure: 50% conventional bank financing, 40% SBA/CDC financing, 10% borrower equity

Why this works: Lowest down payment for standard commercial real estate acquisitions. True fixed-rate certainty means predictable monthly payments for 25 years. No surprises, no rate adjustments, no refinancing risk.

Conventional Commercial Real Estate Financing

Best for: Strong credits with substantial liquidity, or situations requiring faster execution than SBA timelines.

Key Features:

Down payments typically 20-30% (varies by lender and deal structure)
Flexible loan amounts based on property value and borrower strength
Terms from 5-25 years depending on lender and property type
Faster closing than SBA (often 30-45 days for clean deals)
Rate structures vary (fixed, adjustable, or hybrid)

Why this works: Less documentation than SBA programs. Faster closing for time-sensitive transactions. No SBA job creation requirements. Straightforward commercial lending without government program complexity.

Commercial Refinancing & Cash-Out Refinancing

Already own your building? We structure refinancing that improves your position.

Common refinancing scenarios:

Lower interest rate and reduce monthly payment
Cash-out refinancing: Extract equity for expansion, equipment, working capital
Convert variable-rate debt to fixed-rate certainty
Consolidate multiple properties under single financing structure
Restructure existing debt for better terms

Cash-Out Refinancing Example:

Current property value: $3.2M
Existing mortgage: $1.8M
Refinance at 75% LTV: $2.4M new loan
Payoff existing debt: $1.8M
Cash to business: $600K (minus closing costs)

Use extracted equity for equipment purchases, inventory buildup, hiring, expansion into new facilities, or any growth initiative that drives revenue.

Refinancing Requirements:

Property owned 12+ months (some programs require longer seasoning)
Current mortgage in good standing
Strong debt service coverage on proposed new loan
Solid business financials demonstrating repayment ability

Timeline: 30-60 days for conventional refinancing, 60-90 days for SBA refinancing programs.

Why Michigan Businesses Choose LVRG Business Funding

Local Banking Relationships, Competitive Rates

We've built relationships with Michigan-based banks and credit unions that actively finance commercial real estate throughout Detroit, Grand Rapids, Sterling Heights, Warren, Troy, Ann Arbor, and every Michigan market.

These aren't transactional relationships. We know their current lending appetite, their competitive rate positioning, their underwriting preferences, and their decision-makers.

Result: Access to competitive rates through established banking partners who trust our deals and our process. Banks give better terms to repeat partners who bring quality transactions with proper documentation and realistic expectations.

Creative Deal Structuring When Standard Programs Don't Fit

Not every commercial real estate transaction fits neatly into standard SBA or conventional boxes. Property conditions vary. Business situations differ. Timing constraints exist. Seller situations create unique requirements.

Examples of creative structuring:

Manufacturing facility with specialized equipment needs: Standard conventional lenders hesitated on equipment concentration. We structured SBA 7(a) financing emphasizing long-term contracts and industry expertise, including both property and equipment in single package. Deal closed in 71 days.

Strip mall with vacancy challenges: 30% vacancy scared conventional lenders. We positioned it as value-add opportunity with detailed stabilization plan based on existing tenant quality and lease terms. Funded at competitive rates with structure that recognized the repositioning timeline.

Warehouse acquisition with compressed timeline: Business had 35 days to close or lose the property. SBA timeline wouldn't work. We structured short-term conventional financing with planned refinance into SBA 504 six months later for optimal long-term rate and down payment structure.

Standard programs work for standard deals. When they don't, we structure alternatives that make transactions happen.

No Rigid Lending Caps

Throughout this page you'll see typical transaction ranges. These represent common deal sizes we finance regularly in Michigan's commercial real estate markets.

What matters: LVRG Business Funding doesn't operate with strict lending caps. Through our banking relationships and access to institutional capital sources, we structure deals well beyond typical ranges.

Whether it's a $25M manufacturing campus, a $40M industrial portfolio acquisition, or complex multi-property transactions, if the deal makes financial sense, we have the banking partnerships and structuring capability to execute it.

We're not financing billion-dollar office towers, but substantive Michigan commercial real estate transactions that require capital access beyond standard lending boxes get done through our platform.

Process Coordination That Prevents Deal Death

Commercial real estate transactions don't die from qualification problems. They die from coordination failures.

What kills deals:

Appraisal delayed 3 weeks because nobody followed up with appraiser
Environmental report waiting for property access nobody arranged
Title issues discovered 5 days before closing that could have been identified weeks earlier
Bank needs updated financials that weren't requested until underwriting deadline
SBA waiting for documentation that should have been submitted proactively

Every delay compounds. 60 days becomes 90, then 120. Sellers get frustrated. Purchase agreements expire. Financing approvals expire. Deals die despite being fully approved.

Our approach:

We coordinate bank underwriting, SBA processing, appraisal management, environmental consultants, title companies, and closing preparation simultaneously rather than sequentially.

When appraisers need property access, it's already scheduled. When SBA requests additional documentation, we've already submitted it. When title issues surface, we're resolving them immediately instead of discovering them at closing.

Result: Transactions close within expected timelines because every component moves forward in parallel, problems get identified early, and resolution happens before issues become deal-killers.

Commercial Real Estate Financing FAQ

Can I include working capital with commercial real estate financing?

Yes, with SBA 7(a). The 504 program is restricted to real estate and equipment. If you need property financing PLUS working capital for operations, inventory, or growth initiatives, the 7(a) structure provides that flexibility in a single financing package.

Can I rent part of my building?

Yes, within SBA requirements. SBA programs require 51% owner-occupancy. The remaining 49% can be rented to other businesses.

Many Michigan businesses reduce effective occupancy costs 30-50% by renting unused space to quality tenants.

Example: 30,000 sq ft warehouse - you occupy 18,000 sq ft, rent 12,000 sq ft at $8/sq ft = $96,000 annual rental income = $8,000 monthly offset against mortgage payment.

What credit score do I need?

680+ provides best access to programs and competitive terms.

650-680 workable with strong business financials, good explanations for credit issues, and compensating factors like substantial down payment or strong cash reserves.

Below 650 increasingly difficult but not impossible with exceptional business performance, significant down payment, or other compensating factors.

Credit context matters: what caused issues, when they occurred, what's been done to resolve them, and current trajectory.

What if a lender already declined my application?

Single lender decline doesn't determine overall qualification. Banks decline for reasons beyond borrower merit:

Property type doesn't align with current portfolio preferences
Geographic concentration limits already reached
Transaction size outside target range
Temporary internal portfolio adjustments
Risk appetite changes unrelated to deal quality

We close hundreds of commercial real estate transactions after initial bank declines by matching deals with lenders whose current focus aligns with transaction specifics.

How long does commercial real estate financing take?

Depends entirely on deal complexity. Simple transactions with clean properties, complete documentation, and no title or environmental issues close faster. Complex deals with multiple moving parts take longer.

Typical ranges:

SBA programs: 60-90 days
Conventional: 30-60 days

Timeline affected by:

Appraisal scheduling and turnaround
Environmental assessment requirements and completion
Title complexity and issue resolution
Documentation completeness
Property access and condition
Lender underwriting capacity

Can I finance properties throughout Michigan?

Yes. We finance commercial real estate in Detroit, Grand Rapids, Sterling Heights, Warren, Troy, Ann Arbor, Lansing, Flint, Dearborn, and every Michigan market.

Geographic location doesn't limit financing availability. Property quality, business strength, and proper deal structure determine outcomes.

Michigan Commercial Real Estate: Stop Renting, Start Building Equity

The Rent Problem

Every rent payment:

Funds your landlord's wealth, not yours
Builds zero equity
Provides zero appreciation benefit
Creates vulnerability to rent increases
Puts you at mercy of lease renewals
Restricts how you modify or use the space

Example: $18,000/month warehouse rent in Sterling Heights

Annual cost: $216,000
10-year cost: $2,160,000
Equity built: $0
Appreciation captured: $0
Control: Landlord approval required for modifications

The Ownership Alternative

Same warehouse purchased with SBA 504 financing:

Property price: $2.8M
Down payment: $280K (10%)
Monthly payment: approximately $17,200
Monthly savings: $800 while building equity

10-year outcome:

Total payments: $2,064,000
Principal reduction: ~$620,000
Property appreciation (conservative 2.5% annually): ~$750,000
Total wealth creation: $1,370,000

Plus: Complete control over the space, ability to modify for operations, potential rental income from unused space, and tangible asset on balance sheet that strengthens business position.

Commercial Real Estate Financing by Property Type

Industrial Property Loans Michigan

Manufacturing facilities, distribution centers, light industrial buildings, industrial parks.

What we evaluate:

Business fundamentals and cash flow strength
Operational use case and property suitability
Property condition and required improvements
Location and market fundamentals
Specialized infrastructure requirements

Michigan industrial markets we serve: Detroit, Sterling Heights, Warren, Grand Rapids, Ann Arbor, Lansing, Flint, Livonia, and all Michigan industrial markets

Warehouse Financing Michigan

Distribution warehouses, storage facilities, cold storage, specialized warehouse operations.

Warehouse-specific considerations:

Ceiling height and clear span
Loading dock configuration and truck access
Power capacity and electrical infrastructure
HVAC and specialized environmental systems
Location relative to transportation corridors and logistics networks

High-demand Michigan warehouse markets: I-94 corridor, I-75 corridor, Detroit Metro, Grand Rapids region, Port Huron access areas

Manufacturing Facility Loans Michigan

Production facilities, assembly plants, processing centers, specialized manufacturing operations.

Manufacturing-specific considerations:

Specialized infrastructure (power, compressed air, HVAC, water/drainage)
Equipment integration and installation requirements
Zoning compliance and environmental considerations
Workforce access and proximity to supply chain
Production capacity and expansion capability

Michigan manufacturing strongholds: Metro Detroit, Grand Rapids, Battle Creek, Kalamazoo, Lansing region, Jackson

Strip Mall Financing & Retail Property Loans Michigan

Shopping centers, strip malls, retail buildings, anchored retail properties.

What we evaluate:

Tenant mix and credit quality
Lease terms, expirations, and rental rates
Occupancy rates and historical performance
Location, traffic patterns, and market positioning
Anchor tenant strength and stability

Strong Michigan retail markets: Troy, Birmingham, Ann Arbor, Grand Rapids, Northville, Rochester, Royal Oak

Mixed-Use Property Financing Michigan

Properties combining retail/commercial with residential or multiple use types.

Requirements:

51%+ business use for SBA programs
Clear separation of use categories
Strong fundamentals across all use types
Appropriate zoning and compliance

Popular in: Downtown Detroit, Ann Arbor, Grand Rapids, Birmingham, Royal Oak, Ferndale

Michigan Commercial Real Estate Markets We Serve

Detroit Commercial Real Estate Financing

Industrial resurgence, warehouse demand, manufacturing growth, strategic location advantages.

Active financing in Detroit:

Industrial facilities along I-94 and I-75 corridors
Warehouses in distribution-concentrated areas
Manufacturing plants in established industrial zones
Mixed-use properties in revitalizing neighborhoods
Strip malls and retail in strong commercial corridors

Detroit advantages: Transportation infrastructure, Great Lakes port access, skilled labor availability, industrial legacy, ongoing revitalization momentum.

Grand Rapids Commercial Real Estate Loans

Diversified economy, strong manufacturing presence, growing logistics sector, business-friendly environment.

Active financing in Grand Rapids:

Manufacturing facilities (furniture, automotive supply, food processing)
Industrial properties in established business parks
Warehouse and distribution centers
Retail properties in high-traffic corridors
Mixed-use developments

Grand Rapids strengths: Economic diversity, population growth, skilled workforce, pro-business environment, central Michigan access.

Sterling Heights | Warren | Troy Commercial Financing

Metro Detroit industrial hub, automotive supplier concentration, warehouse demand, established infrastructure.

High-activity property types:

Industrial facilities serving automotive supply chain
Warehouses and distribution operations
Manufacturing plants
Strip malls and retail centers
Mixed-use properties in Troy commercial districts

Regional advantages: I-75 corridor access, automotive supplier ecosystem, skilled trades workforce, established industrial infrastructure, proximity to Canadian border.

Ann Arbor Commercial Property Loans

University influence, tech sector growth, professional services concentration, stable retail demand, educated workforce.

Active financing in Ann Arbor:

Retail properties benefiting from stable consumer base
Mixed-use developments
Specialized manufacturing (tech, medical devices, research-adjacent)
Industrial facilities serving university and healthcare sectors

Ann Arbor differentiators: Highly educated workforce, University of Michigan anchor, healthcare industry presence, strong local economy, research and development ecosystem.

Lansing Commercial Real Estate Financing

State capital, government employment base, insurance sector concentration, automotive manufacturing presence.

Active property types:

Industrial facilities
Warehouses and distribution
Retail properties
Mixed-use developments
Manufacturing plants

Lansing advantages: Government employment stability, insurance sector jobs, automotive manufacturing legacy, central Michigan location, infrastructure access.

Start Here: Commercial Real Estate Financing Process

Step 1: Initial Discussion

15-minute conversation covering:

Property you're considering (type, price, location, condition)
Your business (revenue, profitability, time in business)
Down payment capability
Timeline requirements
Any unique circumstances

Outcome: Clear answer on financing viability and which programs make sense for your specific situation.

Step 2: Application & Documentation

Business documentation:

Business tax returns (typically 2 years)
Current profit & loss statement
Balance sheet
Business bank statements (3-6 months)
Personal financial statement
Personal tax returns (typically 2 years)

Property documentation:

Purchase agreement or property information
Rent roll (if income-producing property)
Current property financials (if applicable)

Timeline: We review within 48 hours and provide clear next steps.

Step 3: Underwriting & Property Evaluation

Coordinated activities:

Credit review and financial analysis
Debt service coverage calculation
Property appraisal ordered and managed
Environmental Phase I assessment (when required)
Title review initiated
Bank or SBA underwriting process

Timeline: 2-3 weeks for SBA programs, 1-2 weeks for conventional (varies by complexity)

Your involvement: Respond to documentation requests, provide property access for appraisal, answer underwriter questions promptly.

Step 4: Approval & Closing Preparation

Coordinated activities:

Final loan approval and commitment letter
Closing disclosure preparation
Title insurance and final title clearance
Insurance requirements confirmation
Closing scheduled with all parties coordinated

Timeline: 1-2 weeks

Step 5: Closing & Funding

What happens:

Sign loan documents
Ownership transfers
Funding disbursed
You own the property

Timeline: Single day, typically 1-2 hours for document signing

Overall timeline expectations:

SBA programs: 60-90 days typically
Conventional: 30-60 days typically
Complex deals may require additional time
Clean deals with no issues often close faster

Get Commercial Real Estate Financing for Your Michigan Property

LVRG Business Funding finances industrial properties, warehouses, manufacturing facilities, strip malls, and commercial real estate throughout Michigan.

We structure deals that close with competitive rates, creative solutions, and process coordination that prevents the delays that kill transactions.

Contact Charles M. Barr, CEO

LVRG Business Funding 615 Griswold St. Suite 700 Detroit, MI 48226

Phone: 855-998-5874 Email: cbarr@lvrgllc.com

Additional Commercial Real Estate Resources

Industrial Property Financing Questions

Q: Can I finance a building requiring significant improvements? A: Yes. SBA 7(a) can include renovation costs. Conventional financing may require improvements completed before closing or can be structured as construction-to-permanent financing.

Q: What if the property has environmental concerns? A: Phase I environmental assessment identifies issues. Minor concerns often addressed through indemnification or remediation plans. Significant contamination may require specialized financing approach or different property selection.

Q: Can I finance multiple properties simultaneously? A: Yes, though each property typically requires separate financing structure. We can coordinate simultaneous closings when timing is critical.

Warehouse Financing Questions

Q: Does the warehouse need to be move-in ready? A: Not necessarily. We finance properties requiring modifications, though extent of work affects which programs work best and timeline considerations.

Q: What if I'm buying a larger warehouse than currently needed? A: Common scenario. As long as you meet 51% owner-occupancy requirement for SBA programs, remaining space can be rented. Many businesses offset 30-50% of mortgage payment through rental income.

Manufacturing Financing Questions

Q: Can I finance specialized equipment with the property purchase? A: Yes, with SBA 7(a). You can include machinery, equipment, and even working capital beyond just real estate in single financing package.

Q: What if my manufacturing process has environmental considerations? A: Disclosed during environmental review process. Most manufacturing processes are standard and don't create financing complications. Unusual processes or materials may require additional documentation or specific environmental management plans.

Strip Mall & Retail Financing Questions

Q: What if the property has vacancy? A: We evaluate based on existing tenant quality, lease terms, and realistic stabilization plan. Some vacancy is workable. 100% occupancy isn't required, though higher occupancy strengthens financing terms.

Q: Do tenant leases need to be long-term? A: Longer leases with quality tenants strengthen the transaction. Short-term leases aren't disqualifying but may affect terms or down payment requirements.

Q: Can I buy a strip mall as pure investment property? A: Not with SBA programs (require 51% owner-occupancy). Conventional investment property financing available but typically requires higher down payment (30-35%).

Commercial Refinancing Questions

Q: How soon can I refinance after purchasing? A: Most programs require 12-24 months of ownership. Some exceptions exist for rate/term refinancing on recently purchased properties with substantial rate improvement opportunity.

Q: Can I refinance if my business has grown significantly? A: Yes—often ideal time to refinance. Improved business financials can qualify you for better rates and potentially cash-out refinancing based on increased property value.

Q: What closing costs should I expect on refinancing? A: Typically 2-4% of loan amount, including appraisal, environmental assessment (when required), title insurance, lender fees, and other standard closing costs.

Michigan Commercial Real Estate: Your Next Step

You know what property you need. You know it solves your space problem, enables expansion, or builds equity instead of funding rent payments.

The question is financing that actually closes without depleting working capital or creating unfavorable long-term obligations.

LVRG Business Funding structures commercial real estate financing that works:

Competitive rates through established local banking relationships
Creative deal structures when standard programs don't fit
Down payments from 0-30% depending on program and qualifications
Process coordination that prevents delays that kill deals

Contact Charles M. Barr, CEO to discuss financing for your Michigan commercial property:

LVRG Business Funding 615 Griswold St. Suite 700 Detroit, MI 48226

Phone: 855-998-5874 Email: cbarr@lvrgllc.com