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Bridge Loans |
Typical Transaction Profile:
- Office, Industrial, Retail, Multifamily (rental only) and Lodging.
- Class A or B Locations.
- Value Added Acquisitions/Rehab Transactions.
- Business Plans based upon increased occupancy and/or rents to market through more effective/efficient management and/or repositioning of asset.
- No land or ground-up development.
- Tenant Improvements, Curing of Deferred Maintenance and Cosmetic Improvements are Acceptable.
- NOI stabilization within 3 years.
- Exit within 5 years via sale of property or recapitalization.
- Stabilized/ ”Held for Sale” Properties also considered.
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Typical Deal Structure:
- Loan Size: $10 million to $60+ million.
- Leverage: Up to 90% Loan to Cost (up to 80% of “as is” value for stabilized properties).
- Coverage: Minimum DSCR of 1.10x on stabilized underwritten NOI (going-in DSCR of 1.20x on “held for sale”/stabilized properties).
- Interest Rate: 30 day LIBOR based floaters.
- Rate Protection: Caps or swaps may be required at borrower’s expense.
- Profit Participation: Determined on a case by case basis.
- Term: 3 to 5 years.
- Prepayment: 2 year lockout, flexible terms beyond 2 years.
- Fees: Commitment Fee, Exit Fee and Extension Fees determined on a case by case basis.
- Reserves: Interest reserves and/or other credit enhancements.
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Deal Sponsor:
- Demonstrated experience and successful track record with similar transactions within comparable markets
- Good reputation
- Sound management infrastructure and reporting systems
- Adequate financial capacity
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Mezzanine Loans |
Typical Transaction Profile:
- Office, Industrial, Retail, Multifamily (rental only) and Lodging.
- Class A or B Locations.
- Business Plans based upon enhancing occupancy and/or rents through effective/efficient management.
- No land or ground-up development.
- Tenant Improvements, Curing of Deferred Maintenance and Cosmetic Improvements are Acceptable.
- NOI stabilization within 3 years.
- Exit within 5 years via sale of property or recapitalization.
- Stabilized/ ”Held for Sale” Properties also considered.
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Typical Deal Structure:
- Loan Size: $5 million to $15+ million.
- Leverage: Up to 90% Loan to Cost combined with senior (up to 80% of “as is” value for stabilized properties).
- Coverage: Minimum combined DSCR of 1.10x on stabilized underwritten NOI (going-in combined DSCR of 1.20x on “held for sale”/stabilized properties).
- Interest Rate: 30 day LIBOR based floaters.
- Rate Protection: Caps or swaps may be required at borrower’s expense.
- Profit Participation: Determined on a case by case basis for loans.
- Term: 3 to 5 years not to exceed term of senior.
- Prepayment: 2 year lockout, flexible terms beyond 2 years.
- Fees: Commitment Fee, Exit Fee and Extension Fees determined on a case by case basis.
- Reserves: Interest reserves and/or other credit enhancements.
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Deal Sponsor:
- Demonstrated experience and successful track record with similar transactions within comparable markets
- Good reputation
- Sound management infrastructure and reporting systems
- Adequate financial capacity
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Limited Partner Equity |
Typical Transaction Profile:
- Office, Industrial, Retail, Multifamily (rental only) and Lodging.
- Class A or B Locations.
- Value Added Acquisitions/Rehab Transactions.
- Business Plans based upon increased occupancy and/or rents to market through more effective/efficient management and/or repositioning of asset.
- No land or ground-up development.
- Tenant Improvements, Curing of Deferred Maintenance and Cosmetic Improvements are Acceptable.
- NOI stabilization within 3 years.
- Exit within 5 years via sale of property or recapitalization.
- Stabilized/ ”Held for Sale” Properties also considered if purchased at discount to FMV.
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Typical Deal Structure:
- Investment Amount: $1 million to $5+ million.
- Contributions: Up to 85% of equity.
- Preferred Returns: 10%+
- Profit Participation: Percentage of net cash flow, capital gains and distributions. Determined on a case by case basis.
- Target IRR: 20%+.
Investment Horizon: Up to 5 years.
- Permitted Fees: Sponsor allowed to earn customary fees (management, leasing, etc.) at market levels.
- Guarantees: Responsibility of Sponsor
- Control: Approval on major decisions
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Deal Sponsor:
- Demonstrated experience and successful track record with similar transactions within comparable markets
- Good reputation
- Sound management infrastructure and reporting systems
- Adequate financial capacity
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