Market
Commercial real estate financing in Burlington
Burlington is the only Vermont municipality with two tax increment financing districts, one downtown and one on the waterfront, and the only market in the state where inclusionary zoning genuinely binds. New market-rate residential development above the threshold the ordinance sets, and non-residential conversions that yield housing, must carry affordable units at prices targeted well below area median income under long-running price controls, offset by fee waivers and a density and lot-coverage bonus the city lets a sponsor spread across a mixed-use project including its commercial space.
- 20,000+loan programs screened
- 5–8matches on a typical deal
- Zero upfrontto submit and compare offers
- 1 hourmedian first offer
How does inclusionary zoning change a Burlington project?
It changes the rent roll the takeout is underwritten against, which makes it a credit question rather than a soft cost. The ordinance reaches new market-rate residential development above a threshold it sets and non-residential conversions that produce housing, the affordable share scales with market-rate pricing and is targeted well below area median income, and the price controls run with the unit for generations rather than for a holding period. Compliance offsite or by payment in lieu became possible under a later amendment, and the city offsets the obligation with fee waivers plus a density and lot-coverage bonus that can be applied flexibly across a mixed-use project, including its commercial component. A construction lender wants the unit mix settled before a term sheet means anything, because the affordable units are the part of the stabilized income that cannot be re-forecast later. A modernization of the ordinance is on the city’s stated agenda, which is the kind of open item that belongs dated in the loan file.
What do Burlington’s two tax increment districts pay for?
Public infrastructure, never the private building. Burlington Downtown and Burlington Waterfront are the only paired districts inside one Vermont municipality, and Vermont increment financing funds streets, sidewalks and stormwater out of new grand list growth. The redevelopment of the former Burlington Town Center mall site is the worked example: announced, then demolished, then stalled for years on financing and developer turnover before Farrington Construction, S.D. Ireland and Omega Electrical Construction took it over, with increment financing paying to reconnect the city streets the mall had blocked. Its first phase has opened with apartments, an AC Hotel, a restaurant and a cafe, while the phase carrying the bulk of the apartments and the deferred affordable obligation is still ahead and the developers have asked for more time on that deadline. The lesson a Burlington lender draws is that entitlement and capital risk here are measured in years, which is why infill and conversion inside the two districts price better than a long-horizon speculative play anywhere else in the city.
How does YieldStack actually place a loan?
You describe the deal once, in a 5-minute submit, and that single file is screened against 20,000+ loan programs. Most deals return 5–8 matches, with a median first offer in under an hour. There is $0 upfront; the fee is 0.50–1.00% and is paid only at closing.
YieldStack is a commercial mortgage brokerage, not a lender. We do not hold the capital and we do not decide your rate — we run the process that gets competing lenders to quote the same deal on the same terms, then help you read the offers side by side.
Frequently Asked Questions
Does a Burlington conversion trigger the affordable requirement?
It can. The ordinance reaches non-residential conversions that yield housing, not only ground-up residential, so a downtown office or warehouse building turned into apartments sits inside the rule. That belongs in the budget and the projected rent roll before a lender sizes the takeout, alongside the fee waivers and the density and lot-coverage bonus the city grants against it.
Which Burlington submarkets actually trade?
The waterfront is public recreation along the Burlington Bike Path and the Island Line Trail causeway rather than a development frontage.
What does YieldStack charge on a Burlington deal?
The same everywhere: $0 upfront, and a fee of 0.50–1.00% paid only at closing. It is a 5-minute submit, screened against 20,000+ loan programs.
Is YieldStack a lender?
No. YieldStack is a commercial mortgage brokerage, not a lender. Every term sheet comes from a lender in the network and is subject to that lender's underwriting.
Does it cost anything to see terms?
No. It costs Zero upfront to submit a deal and review offers; YieldStack's broker fee is 0.50–1.00% of the loan amount and is paid only at closing.
Is financing guaranteed?
No. Every credit decision is made by the lender; YieldStack arranges the introductions and negotiates on the borrower's side, and no loan, rate, or closing is guaranteed.
Where does YieldStack operate?
Nationwide. YieldStack arranges commercial real estate financing nationwide. Every deal is business-purpose commercial financing, and the broker fee is paid only at closing.
One deal.Several lenders.
YieldStack is a commercial mortgage brokerage, not a lender.