Industrial Financing in Chatham-Kent, ON

industrial financing in Chatham-Kent prices off the Government of Canada 5-year benchmark bond yield plus a 175 bps industrial financing spread, landing at 4.90% indicative. Term debt on warehouse, logistics, and light-manufacturing assets. On the $2,300,000 average Chatham-Kent transaction, a 70% advance is $1,610,000, carrying $111,820 of annual debt service on a 25-year amortization and a 5-year term.

Leverage binds before coverage here. The wide 7.0% cap rate produces roughly $161,000 of NOI, enough for $1,783,154 at a 1.30x floor — about $173,154 above what the 70% LTV cap will advance. The deal is sized by value, so the appraisal, not the rent roll, is the document to get right first.

Chatham-Kent scores 100 on the Capitalor Lender Density Score — a deep market, with 12 tracked lenders and brokers against 2,800 commercial buildings. Expect competitive tension on well-covenanted paper: quote at least three lenders before accepting a spread.

Stress the file before a lender does. Holding the $1,610,000 loan constant, coverage falls to the 1.30x floor at roughly 5.95% — 1.05% of headroom above today's indicative rate. That headroom, not the headline rate, is what determines whether this Chatham-Kent deal survives renewal.