Commercial Real Estate Construction Loans

Turn your development vision into a functioning asset with AVANA’s commercial construction loans. We provide draw-based, interest-only financing tailored to your project budget, timeline, and exit strategy—so you can focus on building, not chasing capital.  

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SBA 504 Loans
Built for Growth

Fixed-Rate, High LTV (Up to 90%), Long-Term CRE Loans for Owner-Occupied Properties

Backed by $5B+ in SBA lending expertise. Fast, transparent closings tailored for small businesses and brokers.

Apply For a LoanProduct Sheet

Capital for Ground-Up, Expansion & Major Renovation

Construction loans provide short-term financing to fund the cost of building, renovating, or expanding commercial properties. Funds are advanced in stages as construction milestones are completed and verified.
AVANA’s construction lending programs support developers, business owners, and real estate investors who need an experienced, institutional-grade lending partner to navigate complex projects from shovel-ready to stabilized.

Draw-based, interest-only structures

Borrow only as you build, with interest charged on funds as they are drawn

Speed & certainty

Access a quick read on eligibility and a clear, actionable term sheet, so you can move confidently into pre-construction and construction phases.

Flexible terms up
to 3 years

Often with extension options to accommodate delays or extended lease-up periods.

Conversion Ready

Many projects are structured with an anticipated take-out via SBA 504, conventional term loans, or other permanent financing at completion.
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Diversify portfolios
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Expand lending programs beyond their communities
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Mitigate concentration risk
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Improve Loan-to-share ratio

Construction Loans Rates and Terms

Rates and structures vary depending on loan type and borrower qualifications

Interest rates

1-Month Term SOFR
+ 4.50%–7.00%

AVANA Oaktree Private Credit Partnership

1-Month Term SOFR + 4.00%. Floor of 8.00%

AVANA-IHG Co-Lending Construction Program

LTV

Up to 75% Total

Based on up to 75% of “as-is” value or 70% of “as-stabilized” value

Loan amount

$5MM - $30MM

Designed to fund mid- to large-scale commercial real estate projects

Loan terms

Up to 3 Years

Interest-only loans with annual extension options

Uses of proceeds

Construction

Financing available for hospitality construction projects

Download AVANA Oaktree product sheetDownload AVANA IHG product sheet

Wide range of asset types

We finance owner-occupied commercial real estate across a broad mix of property types

Franchised Hotels

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Strategic Partnerships: Oaktree & IHG

Through the AVANA Oaktree Private Credit Partnership, AVANA delivers institutional-grade construction and bridge financing to experienced commercial real estate sponsors, combining AVANA’s sector expertise with Oaktree’s private credit platform
The AVANA–IHG Co-Lending Construction Program offers tailored structures for IHG-branded hotel projects, giving qualified sponsors a specialized lending solution aligned with brand standards and ramp-up expectations.
These partnerships help accelerate funding timelines, sharpen pricing, and create co-investment opportunities for aligned investors.

A Streamlined Process

We make financing simple, transparent, and fast from application to funding

Submit Application

Submit your application with pre-qualification documents. We’ll review and issue a soft quote within 1 business day

Review

We review initial documents and confirm loan structure and key terms. If the deal meets criteria, we issue a Letter of Intent with proposed terms

Approval & Terms

We complete underwriting and order third-party reports as needed. Credit team issues final approval when complete (timing can vary)

Closing & Funding

We prepare final loan documents, open escrow, and coordinate closing. Funds are released once closing requirements are met

Explore Process
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Proven Success Stories

We’ve helped businesses across industries

6-unit multi-family property
Featured
November 27, 2024

6-unit multi-family property

Loan Purpose:

Acquisition

Asset Class:

Multi-Family

Loan Amount:

1,240,000

College Park Hotel Deal
Featured
January 10, 2025

College Park Hotel Deal

Loan Purpose:

Refinance

Asset Class:

Hotel

Loan Amount:

12,500,000

Frequently asked questions

Find answers to common questions
What types of construction projects do you finance?
We fund ground-up builds, expansions, and renovations for experienced sponsors across hospitality (including branded hotels), industrial/warehouse, medical office, self-storage, and select retail. Each project should have a clear business plan, a validated budget, and a defined route to stabilization.  
What are the typical loan amounts, leverage, terms, and pricing?
Construction loans are commonly $5M–$30M, with leverage up to ~70–75% of cost or value, and terms up to 3 years(often interest-only with extension options). Pricing is floating over SOFR and is based on risk, property type, and sponsor strength.  
How long does it take to close, and how do construction draws work?
From a signed LOI, anticipate ~45 days to close, largely driven by third-party items like appraisal, environmental, and PCA. After closing, proceeds are disbursed through draws tied to completed work, supported by inspections and lien waivers.  
Can construction financing pair with SBA or permanent debt?
Yes. Many sponsors arrange a take-out—SBA 504 or conventional perm—before construction begins. We can align the structure to the expected exit and help coordinate third-party timing to reduce rework.  
How does the AVANA Oaktree Private Credit Partnership help with construction deals?
Through the AVANA Oaktree Private Credit Partnership, borrowers can access custom bridge or construction financing between $5MM and $30MM, typically structured as interest-only loans for up to 3 years plus annual extensions, at rates of approximately 1-Month SOFR + 4.50%–7.00%, depending on asset type and risk profile.    
What are the terms for the AVANA–IHG Co-Lending Construction Program?
The AVANA–IHG Co-Lending Program supports IHG-branded hotel construction with loan amounts from $5MM to $30MM, terms up to 3 years plus extensions, and rates starting around 1-Month SOFR + 4.00% (floor of 8.00%). Loans are typically interest-only, secured by a first mortgage, and limited to the lesser of 75% of as-is value or 70% of as-stabilized value.

Ready to Build? Let’s Start Your Loan

Secure the capital you need to move forward fast. Complete our quick online form, and our lending team will guide you through every step of the process
Apply for a loanSchedule a call ↗

Insights

Why are SBA 504 Loans a Powerful Tool for Real Estate Financing?
October 22, 2025

Why are SBA 504 Loans a Powerful Tool for Real Estate Financing?

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Education
The Potential Path to Portfolio Diversification
October 2, 2025

The Potential Path to Portfolio Diversification

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Market Commentary
Hotel Loans Explained: What Hotel Developers and Owners Need to Know to Secure the Right Financing
July 31, 2025

Hotel Loans Explained: What Hotel Developers and Owners Need to Know to Secure the Right Financing

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Education
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Our Team

About Sanat Patel

As Chief Lending Officer at AVANA Companies and Chair of the Board at AVANA Bank, Sanat Patel brings more than three decades of experience in financial services, private credit and commercial banking, with a proven track record in loan structuring, risk management, and balance sheet growth. Sanat has led strategic initiatives that connect institutional capital with entrepreneurial ambition, supporting the growth of businesses, and  owners engaged in commercial real estate across the U.S. He has built and scaled lending platforms in partnership with banks and credit unions, developing tailored financial solutions that drive job creation and foster inclusive economic development.

Sanat Patel
Chief Lending Officer

Our Team

About Christyna Lane

As a lending participation expert in Southern California, Christyna Lane manages the direct loan placements for AVANA CUSO, a Member of the AVANA Family of Companies, with lenders like credit unions, community banks and other financial institutions while establishing and maintaining relationships for the organization.  Joining the CUSO team in 2014, she works in connection with lenders nationwide to assist them in reaching their commercial lending goals and diversifying their portfolio.

Christyna Lane
Vice President Participations