Commercial cooperatives are a popular method for acquiring a location for your business. Long a staple in the residential housing market in New York City and other large metropolitan areas, the uniqueness of co-op ownership makes it essential for buyers to work with mortgage loan officers with experience financing commercial cooperatives. The mortgage professionals at MortgageDepot understand the commercial co-op real estate market and how to obtain the best terms and financing options for our borrowers.

Distinctive features of commercial cooperatives

Cooperative ownership of real estate, whether for commercial or residential use, differs from ownership of a condominium unit or a stand-alone building. Owners of commercial co-ops do not own the building in which the space unit is located. The building is owned by a corporation.

Commercial co-op owners purchase shares of stock in the corporation. The number of shares is usually determined by the square footage of the space occupied by the shareholder’s business. The space is occupied under a commercial proprietary lease from the co-op board. A co-op board is composed of shareholders who are elected to run the corporation as representatives of all of the shareholders.

When someone purchases a commercial cooperative, the buyer receives shares of stock in the corporation and a proprietary lease allowing a business to occupy the space. Your proprietary lease ends when you sell your shares in the corporation.

Types of commercial cooperatives

Subject to zoning restrictions or the bylaws, rules, and regulations of a particular co-op board, any type of business or professional practice can be located in a cooperative building. Businesses for which co-op ownership is well-suited include:

  • Law offices
  • Medical practices
  • Retail stores
  • Architects
  • Clothing designers

No matter what business or profession you are in, the mortgage loan officers at MortgageDepot can make your search for the perfect commercial co-op easier by taking the uncertainty out of the financing process.

Commercial co-op loans

Whether you are purchasing a commercial co-op as a location for your business or professional practice or acquiring it as an investment, MortgageDepot offers you a variety of financing options because we search for the lender offering the best terms, including:

  • Owner acquired or investment loans
  • Fixed- or variable-rate financing
  • Loan durations up to 30 years

We offer commercial cooperative financing for purchases or refinancing a commercial coop that you already own.

Contact us today

Speak to a commercial co-op mortgage loan officers at MortgageDepot for more information about our lending programs.

*This product is not regulated by the New York State Department of Financial Services

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