LOAN TYPES & CAPITAL STRUCTURES

Types of Loans:

Investment & Commercial Loans

Infrastructure & Horizontal Improvement Financing

Vertical Construction and Stabilization Financing

Product Type:

Residential For Sale Subdivision
Multi-Residential for Rent
All Income Property Types
Land Bank

Considerations:

Borrower Exit strategy
Viable Business Plan
Management Team execution more important than financial strength

Rates/Fees:

Rates Vary
Maturities of 1, 10 and 20 years are available.
Fees of the loan and may be financed with the loan.

Eligible Property Types:

Office: Professional, Condominium, Medical, Dental and Veterinarian.

Industrial: Heavy and Light Manufacturing, Warehouse and R&D Flex.

Retail: General.

Special Purpose: Self Storage, Assisted Living Facilities / Adult Care, Day Care Facilities, Restaurants, Funeral Homes and Hotels/Motels.

Capital Structures we work with:

Asset Backed Private Loans
Asset Backed Institutional Loans
Variable Rate and Letter of Credit Securitization Structure

Equity

Traditional equity investment into the ownership entity as a partner, member or stockholder. Investments are with qualified developers and operators in transactions where there is a significant opportunity for value creation or cash flow enhancement. The equity and preferred return will be distributed on a pari passu basis.

Preferred Equity

Preferred Equity is best suited for situations where the developer lacks the additional equity capital required to bridge the gap between debt and purchase or development cost. A Preferred Equity investment is typically structured so that the investor receives its investment plus a preferred return and a participation in profits to achieve their target IRR.

Mezzanine Debt

Mezzanine Debt provides developers with subordinate debt funding up to approximately 90% of the value of the property. This program is attractive to developers who want to retain a greater share of the profits. The first mortgage is typically straight debt and the second mortgage is the higher risk and higher yield instrument, which has either a higher coupon or exit fees. The lender may be the same for both debt instruments or could be two different lenders. This structure is particularly good for developers who want to retain 100% ownership.

Development Agreement

The investor actually takes the ownership position and through a Development Agreement contracts the developer to build and manage the asset. The developer receives 25% to 30% of the profits. This is ideally suited for developers who have no cash equity of their own, young developers with an experienced background but just starting out on their own and for those developers who want to minimize risk.

Loan Types & Capital Structures: Services