When businesses are ready to grow or expand their space, a commercial construction loan can help cover the costs involved, including purchasing land, buying materials and paying contractors.
To get the right loan—and the right loan experience—it’s important to know who you’re banking with.
Knut Torvik, Manager & Member with Phase II Investments, says the group developed plans for a major renovation of a building on West Harvard Avenue in Roseburg to become a new home for Evergreen Family Medicine. The project required sizeable financing, so they applied and received a commercial construction loan through Oregon Pacific Bank. OPB’s local decision making provided an efficient and streamlined loan process.
“The main thing for us was that we were able to deal with someone, someone who’s going to be local, be a community bank, someone we can trust and depend on for the long term,” Knut says.
OPB routinely handles loans of most any size, whether they’re of larger scale, like the Evergreen renovation, or smaller projects.
“I think a lot of people think a community bank can only do small loans, but we really do have the capacity to do practically any loan in our markets,” says Jeff Benham, now retired from our Roseburg Branch.
If you’re considering a commercial construction loan, make an appointment to talk with a banker. It doesn’t cost anything to have that conversation. It’s the best way to ask questions, and to learn about your options and how the loan process works—from getting started to getting draws to what’s needed when construction is complete.
“Once the construction project is done, you’re looking for term financing in most cases, so a lot of people want to know what kind of financing you’ll have at the end of the project and how that’s going to be put together,” Jeff says.
For Phase II Investments, renovating the medical building for Evergreen Family Medicine gave it new life—and provided a new home for family practice and women’s health services in the Roseburg area.
“It looks like a totally different place,” Knut says. “It looks like the best medical office building in town.”