What is a mini perm in real estate?

What is a "Mini Perm" in Commercial Real Estate?

A "mini-perm" is a type of short-term loan used to finance commercial properties. It typically lasts 3 to 5 years and is used to pay off construction or development costs. After this period, the borrower must either refinance with a longer-term loan or sell the property to pay off the mini-perm loan. This loan is often used as an intermediate solution until a property generates stable income and qualifies for traditional financing.