What we offer
| Loan Amount | $1 - $100 million |
| Interest Rate | LIBOR + 6.75% - 8.99% |
| Loan Term | 12 - 36 months |
| Amortization | Interest-only |
| Security | First Mortgage Lien or Deed of Trust |
| Loan-to-Value | Up to 75% |
| Loan-to-Cost | Up to 90% |
| Origination/Exit Fees | 2 - 4% |
| Minimum Yield | 6 - 12 months |
| DSCR | Not required |
| Recourse | Non-recourse |
| Sponsorship | No minimum experience required |
| Asset Types | All major asset types, including land |
| Closing Timeline | 7-21 days |
| Loan Types | Quick closing, new construction, rehabilitation, repositioning, value-add, pre-development, loan purchases |
| Geographical Focus | U.S. Primary and secondary markets |
| CONDUIT/CMBS | |
| Loan Amount | $3 – $75 million; may go higher in select cases |
| Term | 5-10 years |
| Loan-to-value (LTV) | Up to 75% on “As Is” |
| Debt Yield | 7.0% – 11.0% (based on underwritten cash flow) |
| Purpose | Acquisition/ Refinancing on stabilized assets |
| Loan Type | Fixed rate |
| Structure | Senior Mortgage |
| Pricing | Pricing will vary, rates will typically fall in 4.0% – 5.0% range depending on leverage |
| Minimum DSCR | 1.25x DSCR on underwritten net cash flow |
| Amortization | 30 years or less |
| Recourse | Typically non-recourse except for certain standard carve-outs |
| Fees | Generally at Par |
| Prepayment | Locked out followed by defeasance or yield maintenance |
| Property Types / Geography | Multifamily, Retail, Office, Industrial, Self-Storage, Mobile Home Parks, and Hospitality properties located in primary and secondary markets throughout the U.S. |
| Purpose | Purchase/Cash-Out/Refinance |
| Loan Sizes | $100K - $5MM |
| Terms | 5-Year ARM 30-Year Fixed |
| Amortization | 15,25,30 |
| Max LTV | <$500K: 75% >$500K: 70% |
| Min FICO | 650 |
| Min DSCR | Owner-Occupied: 1.2* Investor: 1.15** |
| Stabilization | 75% occupancy required over a 90-day trailing UW period** |
| UW Method | Owner-Occupied: Global DSCR
Investor: Property DSCR |
| Documentation | 2 years personal and business tax returns |
| Eligible Properties | Tier I: Multifamily, Mixed-Use (primary res)
Tier II: Retail, Mixed-Use (primary comm), Warehouse/Self-Storage, Office, Light Industrial, Automotive, Mobile Home Park |
| Pre-Payment Penalty | 5% for 5 years | 5% for 3 years | Declining 5%, 4%, 3%, 2%, 1% |
| Loan Amount | $1 – $20MM |
| Term | 3-10 years |
| Loan-to-value (LTV) | 90% |
| Debt Yield | Tailored to each transaction |
| Purpose | Acquisitions, refinancing, repositioning, workouts, recapitalization on stable and transitional assets >$500K: 70% |
| Loan Type | Equity investment with a fixed preferred rate of return and targeted overall IRR tailored to each transaction |
| Structure | Preferred or common equity interest |
| Pricing | Competitive pricing tailored to each transaction |
| Minimum DSCR | Based upon operating covenants |
| Amortization | Not applicable |
| Recourse | Standard carve-outs |
| Fees | Negotiable |
| Prepayment | Flexible |
| Borrowing Entity | Tailored to each transaction |
| Property Types / Geography | Multifamily, Retail, Office, Industrial, Self-Storage, and Hospitality properties located in primary and secondary markets throughout the U.S. |
TO-BE-BUILT REAL ESTATE PROJECTS
Our investor provides 100% of costs for its Lessee’s to-be-built real estate projects, in exchange for a lease with the Lessee buying out the investor for $1.00 at the end of the lease term. Due to the $1.00 buy-out, the Lessee receives considerable benefits under FASB ASC 842-Leases as opposed to a lease without $1.00 buy-out.
| PROJECT COSTS: | $5-500 million (higher if done in phases) |
| CONSTRUCTION PERIOD: | Up to 36 months. |
| LEASE TYPE: | Triple net on investor lease form. |
| There are no debt coverage or other restrictive covenants. | |
| LEASE TERM: | 10-30 years (usually 20-30 years) |
| LEASE PAYMENTS: | *Lease payments are typically comparable to or less than a lease without $1.00 buy-out on longer term leases. |
| BUY-OUT (at end of lease term*): | * Lessee buys out investor for $1.00. |
PURCHASE OF EXISTING BUILDING
Investor provides 100% of the purchase price of an existing building that its to-be-Lessee plans to (1) take occupancy or (2) buy out an existing landlord, in exchange for a lease with the Lessee buying out investor for $1.00 at the end of the lease term. Due to the $1.00 buy- out, the Lessee receives considerable benefits under FASB ASC 842-Leases as opposed to a lease without $1.00 buy-out.
ACQUISITION COSTS
| (including any renovations*): | * $5-500 million. |
| LEASE TYPE: | Triple net on investor lease form. |
| There are no debt coverage or other restrictive covenants. | |
| LEASE TERM: | 10-30 years (usually 20-30 years) |
| LEASE PAYMENTS: | Lease payments are typically comparable to or less than a lease without $1.00 buy-out on longer term leases. |
| BUY-OUT (at end of lease term): | Lessee buys out investor for $1.00. |
SALE-LEASEBACK
Investor acquires an existing building currently owned by its to-be-Lessee, in exchange for a lease with the Lessee buying out investor for $1.00 at the end of the lease term. Due to the $1.00 buy-out, the Lessee receives considerable benefits under FASB ASC 842-Leases as opposed to a lease without $1.00 buy-out.
PURCHASE PRICE
| (including any renovations*): | *$5-500 million. |
| Price substantially over market value can be considered. | |
| *LEASE TYPE: | *Triple net on investor lease form. |
| There are no debt coverage or other restrictive covenants. | |
| *LEASE TERM: | *10-30 years (usually 20-30 years) |
| *LEASE PAYMENTS: | Lease payments are typically comparable to or less than a lease without $1.00 buy-out on longer term leases. |
| BUY-OUT (at end of lease term): | *Lessee buys out investor for $1.00. |
ENERGY PROJECTS
Investor provides 100% of costs on energy projects to be utilized by its to-be-Lessee, in exchange for a lease with the Lessee buying out investor for $1.00 at the end of the lease term. Due to the $1.00 buy-out, the Lessee receives considerable benefits under FASB ASC 842-Leases as opposed to a lease, power purchase agreement or off-take agreement without $1.00 buy-out.
| *PROJECT TYPES: | *Biofuel, Combined Heat Power, Fuel Cell Power, Gas-to-Liquid, Solar Power, Tire Recycling, Wind Power |
| *PROJECT COSTS: | *$5-300 million (higher if done in phases) |
| *LEASE TYPE: | *Triple net on investor lease form. |
| There are no debt coverage or other restrictive covenants. | |
| *LEASE TERM: | *10-30 years (usually 20 years) |
| *LEASE PAYMENTS: | *Lease payments are typically comparable to or less than a lease without $1.00 buy-out. |
| BUY-OUT (at end of lease term): | *Lessee buys out investor for $1.00. |
SBA Lending
SBA LOAN PROGRAMS
The Small Business Administration (SBA) serves as the main resource for government-backed business loans. Because a portion of an SBA loan is guaranteed by the government, these loans allow small business owners to obtain capital with less equity than a conventional loan requires.
SBA 7(a) Loan
The SBA 7(a) loan is the most common SBA loan product, offering flexibility on terms and business uses. An SBA 7(a) loan is a good option for acquisitions, partner buyouts, real estate purchases, refinance and more.
Advantages:
SBA 504 Loan
While the eligibility requirements for a 504 loan are nearly the same as for the 7(a) loan program, the approved uses of the loan are different. They fall into three main categories: buying commercial real estate, financing improvements within that real estate and purchasing large equipment.
Advantages: