By K2 Capital | April 7, 2025 | Life company permanent financing, stabilized commercial real estate, long-term fixed-rate debt
We typically introduce life company capital once a project has cleared construction or lease-up and settled into stable operations. The income is predictable, occupancy is solid, and the borrower wants long-term debt they do not have to revisit every few years.
Banks are fine for a lot of permanent financing. But they come with conditions: deposit relationships, treasury management requirements, internal exposure limits. Eventually those conditions start to create friction, especially for investors with multiple properties financed through the same institution.
Recent Example
An investor we worked with had several retail and medical office properties financed through the same regional bank. The relationship was strong, but internal concentration limits were making additional loans harder to approve.
Rather than forcing that relationship to stretch further, we introduced a life company lender focused on stabilized commercial assets. The property qualified on its own performance, and the investor locked in long-term fixed-rate debt without moving operating accounts or treasury relationships.
That independence became the real advantage. The bank relationship stayed intact for day-to-day operations, and the investor gained a second institutional lending relationship with no strings attached.
How It Works
Life company loans are structured as long-term fixed-rate permanent financing, typically with 25 or 30 year amortization schedules. Terms are usually 5, 7, or 10 years. Recourse and non-recourse options are available depending on the transaction.
Underwriting focuses on property performance, tenant strength, and the borrower’s track record managing the asset. Unlike some bank programs, there are no deposit requirements, no tax or insurance escrows in many cases, and no cross-collateralization with other assets.
For investors holding stabilized properties where predictable income and long-term rate certainty matter more than short-term flexibility, this is one of the cleanest permanent financing structures available.
| Loan Size | $1,000,000 to $15,000,000; average around $5,000,000 |
|---|---|
| Leverage | Up to 75% LTV |
| DSCR Requirement | Minimum 1.25x trailing 12 month DSCR |
| Property Types | NNN retail, medical office, industrial, warehouse, stabilized multifamily, office, specialty commercial |
| What Makes This Capital Different | Recourse and non-recourse options available; no deposit relationship required; no tax or insurance escrows in many cases; long-term fixed rates for predictable cash flow |
| Closing Timeline | 30 to 45 days from signed LOI |
If this sounds like a fit for your situation, submit a request with some additional context. We will review it and determine whether this capital partner aligns with your situation.