CRE-Finance LLC Illustrates the Difference of a Mixed-Use Property Compared to a Mixed-Commercial Property

A Mixed use is not the same as a mixed commercial.

There is some confusion in the commercial world as why some properties are considered a mixed use and some are considered a mixed commercial. "Aren't they the same?" is a common question we hear at Commercial Real Estate Finance LLC.

A mixed use is not the same as a mixed commercial, says Todd Tretsky of CRE-Finance. A mixed-use property combines residential income units (usually apartments) with commercial space (usually, but not always, retail).

There was an issue with mixed-use properties that scared away many lenders in the 1970's - noise. In the 1970's there were a number of court cases that penalized lenders which had foreclosed on mixed-use properties. The residential tenants sued the lenders for a breach of their right of quiet enjoyment to their apartments.

Apparently the prior owners of these mixed-use properties had rented the ground floor commercial units to noisy bars or loud disco's. The poor residential tenants couldn't sleep at night, but they didn't want to move out because of the cost of moving or because they had rent-controlled apartments with below-market rents. The foreclosing lenders had to either buy out the successful disco with a ten-year lease or buy out the residential tenants. For several decades afterwards, mixed-use properties were shunned by most lenders.

In contrast, a mixed-commercial property is one that mixes two different classes of commercial property, like offices over ground-floor retail or retail in front of self-storage units.

The mortgage professionals at CRE-Finance LLC are very well versed in both Mixed-Use and Mixed Commercial properties.

If you have any questions regarding commercial real estate or are seeking financing, do not hesitate to contact Rich Tretsky or Todd Tretsky at 855-515-5585 or visit us at