Retail & Office Financing in Chatham-Kent, ON

retail & office financing in Chatham-Kent prices off the Government of Canada 5-year benchmark bond yield plus a 245 bps retail & office financing spread, landing at 5.60% indicative. Term debt underwritten on tenant covenant and lease rollover risk. On the $2,300,000 average Chatham-Kent transaction, a 60% advance is $1,380,000, carrying $114,851 of annual debt service on a 20-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 $1,432,962 at a 1.35x floor — about $52,962 above what the 60% 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 $1,380,000 loan constant, coverage falls to the 1.35x floor at roughly 6.06% — 0.46% of headroom above today's indicative rate. That headroom, not the headline rate, is what determines whether this Chatham-Kent deal survives renewal.