Upstate New York Market Update: May 2026 CRE Lending
By Marty Cole – Associate
One of Largo’s correspondent life insurance companies is allocating $500 million to a new stretch senior lending program, with plans to be active throughout Upstate New York. This lender offers an attractive combination of high leverage and interest-only terms, helping to offset the elevated interest rates experienced over the past several years. Largo services loans for this lender as part of its $4.5 billion servicing portfolio.
Depth of Lending Platform
- Property Type: Industrial, self-storage, retail, student housing, multifamily, medical office, & select full service hotels.
- Loan Types: Permanent & Bridge
- Loan Size Range: $10-40MM
- Term Lengths: 3 to 30 years
- Amortization: Full Term interest only expected on loan terms up to 5 years; otherwise, 25/30
- Prepayment Penalty: Yield maintenance with a minimum of 1%, then 90 days open at par. Alternative PPP structures available for additional spread
- Pricing: Corresponding US Treasury +/- 200 bps
- Rate Lock: At application
- LTV: Up to 75%
- Debt Yield: Minimum 7.5%
- Lender Fee: Up to 1%, based on a case-by-case basis
- Recourse: Only “Bad Boy” carveouts
- Largo has represented this lender in Upstate New York since 1991.
This is an excellent solution that enables the lender to deploy more capital with strong sponsors they want to do additional business with. With $500 million to allocate nationwide, this program is expected to move quickly. If you’re working on a qualifying opportunity, we’d welcome the chance to connect.
