Commercial Real Estate Financing

Investing in real estate to diversify your wealth portfolio

At U.S. Trust, we view borrowing for the purchase of investment real estate as a strategic wealth management tool. While lending to clients whose wealth is concentrated in commercial real estate is generally evaluated by Bank of America's Commercial Real Estate Bank, in some instances, U.S. Trust can assist clients whose wealth is primarily outside the commercial real estate industry. When you are looking to diversify your balance sheet or investment portfolio, we can offer guidance, as well as access to financing for a variety of commercial investment real estate properties, including but not limited to:

  • Apartments (non-owner occupied)
  • Farm, ranch and timberland
  • Industrial properties
  • Office buildings
  • Retail centers

Investing in real estate may enhance your overall wealth management strategy through:

Diversification1 — Investment in real estate can contribute to a well-balanced, diversified portfolio because its performance is often not correlated to the equity markets.

Cash flow — Real estate investments can create a stable cash flow source for retirement and other needs.

Favorable tax treatment2 — Taxpayers who itemize deductions may be able to deduct investment interest when the loan is used to purchase property held for investment.

CUSTOMIZED FINANCING OPTIONS AND RISK MANAGEMENT

Our underwriting sophistication and capabilities allow us to create financing based on your unique needs. We have the knowledge and product expertise to create a customized, flexible loan structure based on your balance sheet, asset allocation, cash flow, tax considerations and general wealth-building objectives.

We can offer a comprehensive array of financing solutions with competitive features and terms — from the traditional to the complex. We offer variable-rate financing options and interest rate hedging strategies. A customized credit solution that includes an interest rate swap, cap, collar, or other flexible strategy may help you manage interest rate risk while meeting your income and borrowing requirements.3

DEDICATED ADVICE AND ACCESS

Investment real estate lending at U.S. Trust offers you a broad range of experience and the ability to bring you choices and flexibility many other providers don't offer. We understand real estate, and our specialists within U.S. Trust and across Bank of America can assist you with many different property types, providing guidance and access to the appropriate type of financing for you.

THE RESOURCES OF A LEADER

In addition to customized commercial real estate financing, U.S. Trust can deliver access to a wide spectrum of credit capabilities and a depth of resources, expertise and capital strength that few financial institutions can match.

The critical dimension we bring to this relationship is a high level of personal service, because you work with knowledgeable credit specialists who seek to ensure that your credit strategy effectively complements the other key components of your wealth management plan. Supported by the capital base of U.S. Trust, we have the flexibility to fund significant loans while offering competitive terms and interest rates. Because time may be a critical factor as you evaluate different financing options, we provide a prompt and informed response to all credit requests.

CONSIDERATIONS AND RISKS

  • Customized lending solutions involve special risks and may not be appropriate for all clients.
  • Customized lending solutions may be subject to additional credit and legal approval.
  • Clients should consult with their independent attorney, tax advisor and investment manager before implementing any financial, tax or estate planning strategy.
  • Clients should also consider their portfolio diversification requirements, time horizon, risk tolerance, debt tolerance, tax situation and any cash flow and appreciation objectives they may have.

1 Diversification does not ensure a profit or protect against loss in declining markets. Asset allocation cannot eliminate the risk of fluctuating prices and uncertain returns.

2 Neither U.S. Trust nor any of its affiliates or advisors provide legal, tax or accounting advice. You should consult your legal and/or tax advisors before making any financial decisions.

3 Hedging strategies can result in higher return potential but also higher loss potential. Prospective investors are required to meet certain qualifications and acknowledge that they understand the risks associated with certain hedging strategies may not be suitable for all investors.

Credit facilities are provided by Bank of America, N.A., Member FDIC, its subsidiaries or other bank subsidiaries of Bank of America Corporation, each an Equal Opportunity Lender. All loans and collateral are subject to credit approval and may require the filing of financing statements or other lien notices in public records. Asset-based financing involves special risks and is not for everyone. When considering an asset-based loan, consideration should be given to individual requirements, asset portfolio composition, and risk tolerance, as well as capital gains, portfolio performance expectations and investment time horizon. A complete description of the loan terms will be found in the individual credit facility documentation and agreements. Clients should consult with their own independent tax and legal advisors.

Bank of America, N.A., and U.S. Trust Company of Delaware (collectively the "Bank") do not serve in a fiduciary capacity with respect to all products or services. Fiduciary standards or fiduciary duties do not apply, for example, when the Bank is offering or providing credit solutions, banking, custody or brokerage products/services or referrals to other affiliates of the Bank.

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