types of real estate + construction finance

These are some of the most common forms of real estate finance used across development, acquisition, and portfolio management. Each plays a distinct role depending on project risk, asset maturity, capital needs, and execution speed—and in practice, many projects combine multiple financing types to optimize cost of capital, flexibility, and risk allocation.

Commercial Bank

  • Term loans & refinancing

  • Portfolio-level facilities

Used for:
Ground-up development, major renovations, stabilized assets

Private Credit & Infrastructure Funds

  • Senior and mezzanine capital

  • Structured real estate debt

Used for: Complex projects, faster execution, higher leverage tolerance core part of the process.

Sale-Leaseback & Asset Monetization

  • Operating assets with strong tenants

Used for: Capital recycling, Balance sheet optimization, Development equity

  • Development equity

  • Joint ventures

  • Platform investments

Used for: New markets, portfolio growth, risk-sharing

Strategic & Institutional Equity

“What about the large commercial lenders? Do they offer green, social or other preferential financing?

Commercial banks may offer access to incentivized and program-based financing, but it is rarely a core part of their business model. As a result, many of the loan originators/underwriters are unaware of the program. The responsibility for researching, identifying, and asking for the specific program, mostly sits with the borrower.