What is a blanket commercial mortgage?

A blanket mortgage is a single loan that covers multiple properties under one financing agreement. Instead of separate loans for each property, all properties serve as collateral for a single mortgage. This simplifies financing for investors who own multiple properties and can reduce overall costs versus individual loans. A key feature is the partial release clause, which allows individual properties to be sold and released from the blanket mortgage without paying off the entire loan (usually by paying a defined release price). Blanket mortgages are common in commercial real estate portfolios, land subdivisions, and for builders developing multiple lots.