Permanent Debt for Land Sites
Quick answer
Kismet Kapital structures permanent financing for land sites at 55–75% LTV, typically closing in 45–75 days. Entitlement status, carry cost, and exit visibility drive structure.
- Product
- Permanent Debt
- Asset Class
- Land
- Typical Leverage
- 55–75% LTV
- Typical Close
- 45–75 days
- Term
- 5–30 years
- Recourse
- Non-recourse with carve-outs
Overview
Land financing — including entitled, pre-development, and transitional sites — is one of the most structured corners of CRE capital, generally led by debt funds and private credit. Permanent debt is the long-term capital base for stabilized CRE — sourced from agencies (multifamily), life companies, CMBS, and bank balance-sheet groups. For land sites, permanent proceeds are sized against entitlement status, carry cost, and exit visibility drive structure. loans typically carry shorter terms with milestone-based draws and structured equity layers.
Why sponsors use Kismet Kapital for land permanent capital
land transactions are typically capitalized with Bridge, Land Loan, Preferred Equity, JV Equity. Kismet Kapital identifies which of those structures the current lender market will actually fund for your business plan, then runs a competitive process across the desks pricing land risk today.
Terms at a glance
- 55–75% LTV typical proceeds for permanent on land sites.
- Executions generally close in 45–75 days.
- Fixed-rate with defeasance or yield-maintenance prepayment provisions.
- Common structures: Bridge, Land Loan, Preferred Equity, JV Equity.
- Agency multifamily refinance
- Life company industrial and office
Key facts
Kismet Kapital typically closes permanent financing on land sites in 45–75 days.
Permanent Debt for land sites generally size to 55–75% LTV.
Land capital stacks commonly include Bridge, Land Loan, Preferred Equity, JV Equity.
Frequently asked questions
What leverage is available on permanent financing for land sites?
Permanent Debt for land sites typically size to 55–75% LTV, with the exact proceeds driven by in-place income, business plan, and sponsor experience.
How long does a permanent loan on land take to close?
Most land permanent executions close in 45–75 days from signed term sheet.
How do lenders underwrite land sites?
Entitlement status, carry cost, and exit visibility drive structure. Loans typically carry shorter terms with milestone-based draws and structured equity layers.
What capital structures work best for land sites?
Land Sites are typically capitalized with Bridge, Land Loan, Preferred Equity, JV Equity. Kismet Kapital engineers the mix that maximizes proceeds without breaking the business plan.
When is permanent the right product for an land deal?
Long-duration, fixed- or floating-rate senior debt for stabilized commercial real estate. It fits land transactions such as agency multifamily refinance and life company industrial and office.
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