How New City Financial underwrites manufacturing facility financing
Industrial real estate is underwritten differently from most commercial property, and manufacturing plants sit at the specialized end of that spectrum. New City Financial qualifies these loans on the asset's own economics rather than your personal income, so the starting point is the facility's net operating income and its debt-service coverage ratio (DSCR) — not your tax returns. For an income property, that means the rent a production tenant pays measured against the debt; for an owner-occupied plant, it means the cash flow the operating business generates from the space it owns. Deals that clear a 1.0 DSCR or better, backed by credible in-place or projected numbers, are our core business — which is what lets a manufacturer, a partnership, or a real-estate LLC finance an industrial building without the multi-year income packages a conventional bank requires.
As a commercial lending firm, we lend up to 75% of value on loan amounts from $75,000 to $50 million, with a 500 FICO floor and closings in under three weeks when title and third-party reports move on schedule. We work across 40-plus states. Fixed-rate structures over 3, 8, and 30 years — with no balloon payments — give an industrial owner a debt cost that stays put while equipment is installed, a line is retooled, or a new tenant ramps up production. Any rates referenced on this site are illustrative only; your actual pricing depends on the facility, the market, your leverage, and your experience.
Manufacturing facility loans we finance
We finance a wide range of production and assembly real estate: single-tenant plants leased to one manufacturer, multi-tenant industrial and flex buildings that blend production with office and warehouse, light-manufacturing and fabrication space, food and beverage processing, and general-purpose industrial that can be re-tenanted across users. Value-add business plans are welcome — acquiring an under-utilized or dated plant and upgrading its power service, loading, clear height, or floor systems to lift rent and occupancy is exactly the kind of plan our financing supports. Owner-occupied manufacturing, where your operating company takes space in the building it owns, qualifies as a business-purpose loan.
Because every loan is business-purpose, we do not finance primary residences, and we work with investors and business owners rather than consumer borrowers. The common uses are straightforward: acquisition of a new plant, rate-and-term refinance to replace a maturing or higher-cost note, and cash-out refinance to pull equity for equipment, expansion, or the next building. If you are weighing whether a specific facility pencils, the fastest path is a short conversation about the lease or owner-occupant economics, the in-place NOI, and your business plan for the asset.
What makes a manufacturing facility distinct to underwrite
Manufacturing buildings carry features that a general commercial lender may not know how to weigh — heavy three-phase power, reinforced floor loads, crane capacity, ceiling clear height, dock and drive-in access, and utilities sized for production. Those same features drive both the value and the re-use potential of the asset, so we look closely at how general-purpose or special-purpose a building really is: a flexible industrial box appeals to many future users, while a highly specialized plant leans harder on the strength of its current occupant. We weigh the credit and lease term of the tenant — or, for owner-occupied deals, the durability of the operating business — alongside the building's condition and its position within the surrounding industrial market.
