Commercial Loans and Fun Blog

C-Loans Closes $18.5MM Construction Loan on a Mixed Use Project

Posted by George Blackburne on Tue, Jun 3, 2014

Mick Carlson, General Manager of C-Loans, Inc., is pleased to announce that C-Loans has just closed an $18.5 million commercial construction loan on a mixed use project in Monona, Wisconsin.  Who says no one is making commercial construction loans these days?

Mixed Use

Mixed-use is not the same as mixed-commercial.  A mixed-use property combines residential income units (usually apartments) with commercial space (usually, but not always, retail).  

There was an issue with mixed-use properties that scared away many lenders in the 1970's - noise.  In the 1970's there were a number of court cases that penalized lenders which had foreclosed on mixed-use properties.  The residential tenants sued the lenders for a breach of their right of quiet enjoyment to their apartments.


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Apparently the prior owners of these mixed-use properties had rented the ground floor commercial units to noisy bars or loud disco's.  The poor residential tenants couldn't sleep at night, but they didn't want to move out because of the cost of moving or because they had rent-controlled apartments with below-market rents.  The foreclosing lenders had to either buy out the successful disco with a ten-year lease or buy out the residential tenants.  For several decades afterwards, mixed-use properties were shunned by most lenders.

In contrast, a mixed-commercial property is one that mixes two different classes of commercial property, like offices over ground-floor retail or retail in front of self-storage units.


A lady tells the story:  Waiting for our aerobics class to begin, several of us were standing around in our leotards chatting about fitness and diets. One woman said that her brother-in-law had quit smoking, gone on a diet, and lost weight - all at the same time. 

Thinking to myself that no human being could possibly do this without acquiring at least one other undesirable habit for compensation, I jokingly asked her, "What did he start doing instead of these things?" 

After a slight pause, she smiled and said, "Well, my sister is pregnant now."


This huge $18.5 million closing is an important milestone for C-Loans.  Even though we have closed over 1,000 different commercial real estate loans totaling over $1 billion, many of the large-loan lenders refused to believe that it was possible to close large commercial loans over the internet.  On top of a $17 million closing, this new $18.5 million closing finally puts this prejudice to bed.

Commercial construction lending is poised to come roaring back, as new commercial construction was almost non-existent during the Great Recession.  C-Loans, Inc. is so bullish on commercial construction lending that we just went out and paid a small fortune for the domain, 

Ultimately all of our loan requests get funneled into  If you need a large commercial construction loan - or any type of commercial real estate loan - please enter it into  Remember, it takes only four minutes, and is free!

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Somewhere in your pencil drawer is the business card of a banker who makes commercial loans.  It's probably stained and dog-eared, and you probably haven't even looked at in months.  You can trade the contents of this stinky 'ole business card for a free, written directory of 2,000+ commercial real estate lenders.

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Sooner or later you will be trying to get a commercial loan so that either you, or your investor client, can buy a commercial-investment property (as opposed to an owner-user property).  You will be very frustrated to learn that your bank will not lend up to 75% loan-to-value.  The bank will want you to put down a whopping 40% of the purchase price.  Blackburne & Son's will invest preferred equity in your project to make your down payment large enough.

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Topics: $18.5MM Closing