Experienced real estate operators can now take advantage of our customized subordinate capital program to facilitate the acquisition, repositioning or development of real estate projects in major matropolitan markets throughout the U.S.
USES
- Acquisitions for Core, Core-Plus, Value-Added Opportunities, Credit Tenant Build-to-Suit and Development
- First Mortgage Refinancing Shortfalls (fill or help fill deleveraging gaps)
- Debt Paydowns to Existing Lenders to Encourage Extensions
- Discounted Debt note acquisitions, (by current owner or if a 3rd party purchaser if there is a clear path to title)
- Tenant Improvements & Capital Expenditure “Good News” Funding
- Owner Recapitalizations and Partner Buyouts
INVESTMENT
- $2 – $12 million of Mezzanine Debt, Preferred Debt, Preferred Equity or Joint Venture Equity for properties with values of $10 – $75 million
TERM
- 3 or more years co-terminus with the first mortgage maturity
FEES
- 1 – 2%
RETURN
- 12 – 18%, made up of pay-rates of +/- 10% combined with either equity kickers or interest accrual to make up difference
RECOURSE
- Typically non-recourse
PROPERTY TYPES CONSIDERED
- Multi-Family
- Anchored Retail
- Office
- Industrial
- Student Housing
- Manufactured Housing
- Self-Storage
- Mixed Use
PROPERTY TYPES EXCLUDED
- Fractured Condominiums
- Land
- Hospitality
- Senior Housing
- Anything for-sale, by-the-unit
LOCATION
- MSA’s with populations of 1 million and greater with historic patterns of population and job growth
SPONSOR
- Operators with property type and local market expertise
3rd PARTY FIRST MORTGAGE
- Term and rates necessary to execute the proposed business plan
For more information, please contact
- Dan Hartman, Senior Regional Director (Northeastern U.S.)
- Michael Lowinger, Senior Regional Director (Western U.S.)
- Mark Macedo, Senior Regional Director (Western U.S.)
- Frank G. Sullivan, Senior Regional Director (Texas, Southeastern, Midwestern U.S.)