Get the leverage you need in a single first-lien structure. Select Capital Funding’s stretch senior commercial loans go beyond conventional senior limits — delivering higher LTV without the complexity of a two-lender senior-plus-mezzanine stack. One loan, one closing, one lender. Nationwide.
| Traditional Two-Loan Structure | Stretch Senior Commercial Loan |
|---|---|
|
Senior Loan — Lender A
65–70% LTV | First Lien Position
Mezzanine Loan — Lender B
10–15% | Second Position Pledge Intercreditor Agreement Required
Borrower Equity
15–20%
2 Loans · 2 Lenders · 2 Closings · Intercreditor Agreement
|
Stretch Senior Loan — Single Lender
75–80%+ LTV | First Lien Position Only No Intercreditor Agreement Needed
Borrower Equity
20–25%
1 Loan · 1 Lender · 1 Closing · No Intercreditor Required
|
Access higher LTV in a single first-lien loan to maximize leverage on a commercial acquisition — without the overhead of coordinating a senior lender and a mezzanine lender simultaneously.
Fund the acquisition and initial capital expenditures of a value-add commercial asset with a stretch senior structure that provides the leverage you need to execute your business plan.
Refinance out of a two-lender structure into a single stretch senior loan — eliminating the intercreditor agreement, simplifying loan management, and reducing structural complexity.
Close faster with a single lender and one loan package instead of coordinating two simultaneous closings — critical when a seller requires certainty of execution within a tight timeline.
Access equity from a stabilized commercial asset at a higher LTV than a conventional senior loan allows — in a single, streamlined first-lien refinancing structure.
Finance the acquisition or refinancing of transitional, value-add, or repositioning commercial assets with a stretch senior structure built for deals that require speed and flexibility.
Higher-leverage first-lien financing for multifamily acquisitions, value-add repositioning, and refinancing — structured in a single loan to maximize proceeds and simplify execution.
Single first-lien stretch financing for office acquisitions, repositioning, and bridge scenarios — delivering higher leverage than conventional senior lenders without a two-lender structure.
Higher-leverage stretch senior loans for retail centers, strip malls, and mixed-use retail assets — single first-lien structure, faster execution, less complexity.
Stretch senior financing for industrial, warehouse, and logistics properties — structured to provide higher leverage in a single first-lien position without mezzanine complexity.
Single first-lien stretch senior financing for mixed-use developments combining residential, retail, and commercial components in urban and suburban markets.
Flexible stretch senior bridge financing for acquiring and repositioning underperforming commercial assets — one loan from acquisition through stabilization.
Higher-leverage stretch senior construction financing for experienced developers building commercial or multifamily projects from the ground up.
Stretch senior financing for self-storage facility acquisitions, expansions, and refinancing — structured in a single first-lien instrument for faster, simpler execution.
Share your deal summary — property type, current LTV, leverage target, business plan, and borrower background — with our team.
We evaluate the property fundamentals, current capitalization, proposed stretch senior structure, and the overall deal quality to determine the right loan size and terms.
We structure your stretch senior commercial loan — including leverage, rate, term, interest reserve (if applicable), and any custom provisions — in a single first-lien instrument.
Receive your customized stretch senior term sheet fast — outlining leverage, structure, rate, term, and all material terms clearly in a single document.
One closing. One loan. Move forward with higher-leverage commercial financing — faster and with significantly less complexity than a two-lender structure.
| Feature | Traditional Senior + Mezzanine | Stretch Senior Commercial Loan |
|---|---|---|
| Number of Lenders | Two separate lenders | ✅ Single lender |
| Number of Closings | Two separate closings | ✅ One closing |
| Intercreditor Agreement | Required between lenders | ✅ Not needed |
| Lien Structure | Senior: 1st lien / Mezz: 2nd position pledge | ✅ Single first lien only |
| Leverage Available | 75–85% combined (two instruments) | ✅ 75–80%+ in a single loan |
| Execution Speed | Slower — two document sets, two closings | ✅ Faster — single transaction |
| Documentation | Two full loan packages | ✅ One streamlined loan package |
| Relationship Management | Two lenders to manage simultaneously | ✅ Single lender relationship |
| Structural Complexity | Higher — multiple agreements to negotiate | ✅ Lower — single loan agreement |
| Ongoing Loan Management | Two servicers, two sets of reporting | ✅ Single servicer, simplified reporting |
A stretch senior commercial loan is a first-lien commercial real estate loan that provides higher leverage than a conventional senior loan — “stretching” beyond the 65–70% LTV ceiling that traditional bank senior financing typically offers. Rather than combining a standard senior loan with a separate mezzanine loan to achieve higher leverage, a stretch senior loan consolidates both into a single first-lien instrument with a single lender. The result is more leverage, fewer parties, a single closing, and a significantly simpler structure than a two-loan senior-plus-mezzanine stack.
A standard senior commercial loan from a bank or conventional lender typically caps leverage at 65–70% of the property’s value or cost. A stretch senior loan extends that leverage ceiling to 75–80% or higher — in the same first-lien position. The additional leverage is reflected in a higher interest rate compared to a conventional senior loan, as the lender is taking on more risk by stretching beyond typical senior loan limits. However, for borrowers who need higher leverage and want to avoid the structural complexity of adding a mezzanine layer, the stretch senior structure offers a compelling combination of leverage and simplicity.
The primary advantages are structural simplicity and execution speed. A traditional senior plus mezzanine structure requires two separate lenders, two separate loan closings, two sets of legal documentation, and an intercreditor agreement between the senior and mezzanine lenders governing how they interact in default or exit scenarios. This multi-party structure adds time, cost, and complexity to every transaction. A stretch senior loan eliminates all of that — one lender, one closing, one agreement — while achieving similar leverage to the two-loan stack in a streamlined, single first-lien instrument.
An intercreditor agreement is a legal contract between a senior lender and a mezzanine lender in a two-loan structure that governs how each lender’s rights are prioritized — particularly in default scenarios, workout situations, or property sales. Negotiating and executing an intercreditor agreement adds time and legal cost to a closing, and the provisions can create friction between the two lenders when market conditions change or the borrower encounters challenges. Because a stretch senior commercial loan is a single first-lien instrument with a single lender, no intercreditor agreement is required — removing this layer of complexity from the transaction entirely.
Stretch senior commercial loans typically extend leverage to 75–80% of the property’s value or cost, compared to the 65–70% ceiling of conventional senior financing. The specific LTV available on any given transaction depends on the asset type, location, current occupancy and condition, business plan, borrower experience, and exit strategy. Each deal is underwritten individually — contact our team to discuss the appropriate leverage structure for your specific transaction.
Select Capital Funding considers stretch senior commercial loans across a broad range of property types, including:
Cross-collateralization across multiple properties may be available for maximum loan amounts. Unimproved parcels and single-use properties are reviewed on a case-by-case basis.
Stretch senior commercial loans are most commonly used by experienced commercial real estate investors, sponsors, and developers who need higher leverage than a conventional bank will provide, but want to avoid the time, cost, and structural complexity of arranging a two-lender senior-plus-mezzanine structure. They are particularly useful for time-sensitive acquisitions, value-add bridge scenarios, and transactions where speed and simplicity are essential to getting the deal done.
Many stretch senior commercial loans are structured as interest-only for the loan term — particularly bridge and shorter-term structures — meaning the borrower makes interest payments only during the loan period, with the principal balance due at maturity. Whether a specific loan is structured as interest-only or includes amortization depends on the loan term, the deal structure, and the lender’s specific program parameters. Our team will discuss the appropriate payment structure for your transaction during the underwriting process.
Stretch senior commercial loans are most commonly structured as short-term to intermediate-term instruments. Bridge-style stretch senior loans typically range from 12 to 36 months, while intermediate-term structures may extend to 3 to 7 years depending on the asset, business plan, and borrower objectives. Longer-term permanent financing is also available for stabilized commercial assets. Each transaction is structured individually to align with the borrower’s hold period and exit strategy.
Yes. Stretch senior commercial loans are frequently used for value-add acquisitions and repositioning transactions, where a borrower acquires a commercial asset with a defined improvement or lease-up plan and needs higher leverage than a conventional senior loan provides to execute the strategy. The single-lender structure is particularly well-suited for value-add deals, where the reduced closing complexity allows the borrower to move quickly and begin executing the business plan without the delays inherent in coordinating two separate lenders.
Select Capital Funding provides same-day expressions of interest on most commercial transactions. In-house decision making — rather than loan committee review — allows us to move significantly faster than traditional lenders. For transactions with a complete deal package submitted upfront — including property information, the proposed capital structure, business plan, and borrower background — we can advance from initial review to term sheet and through closing quickly. When timing is critical to a deal, the single-lender structure of a stretch senior loan is a key advantage over a two-lender stack.
The initial review process typically requires the following information:
Providing a well-organized deal package at the outset allows our team to deliver a same-day expression of interest and advance toward a term sheet without unnecessary delays.
Whether you’re acquiring, refinancing, or repositioning a commercial asset and need more leverage than conventional lenders will provide — our team can structure a stretch senior commercial loan built around your deal, your timeline, and your exit strategy.
