In one sentence
Long-term, typically fixed-rate financing on a stabilized property, replacing construction or bridge debt.
The longer version
Permanent loans, often called takeout financing, refinance construction or bridge debt once a property is built and leased. Life companies, agencies, and CMBS are the classic permanent lenders.
The move from bridge to permanent is a refinancing closing with its own diligence, and the availability of a takeout is what makes the earlier short-term loan bankable.
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