I think I know the answer to this, but I wanted to make sure:

Loan Purpose: Improve commercial property (lake resort), such as parking lot, docks, and marina.
Collateral: Leasehold mortgage on said resort property (no dirt)

Is the loan subject to HVCRE classification?

In most states, taking an interest in a leasehold agreement is the equivalent of taking an interest in the real property. Are you not getting title insurance and is the mortgage not filed in the real property records?


An HVCRE ADC loan includes a credit facility that: is secured by real property; primarily finances, has financed, or refinances acquisition, development, or construction of real property; has the purpose of providing financing to acquire, develop, or improve such real property into income-producing property; and is dependent on future income or sales proceeds from, or refinancing of, such real property for repayment.

I am not sure about state law, but yes, there is title insurance, and the mortgage is filed in the real property records.
The improvements will consist of adding new boat slits, and improve existing marina & parking lot.
The boat slits are, and will, provide rental income to borrower, in addition to the gas and food sales income from the marina.

Then I think you have your answer. The only other place to ask for additional clarification would be your EIC and ask their opinion. They are the only ones that count anyway.

Thanks for your help!