Programs & Specials
100%
Funds for Investments
WHO : The program is designed for the
experienced developer/manager who has excellent skills in building,
leasing and selling investment grade property, the so-called merchant
builder. For various reasons, the developer may not have
the required equity necessary for the project.
WHAT :
A maximum loan of 85%
of value versus the customary
75%.
While the program was designed for credit
anchored retail, it works well for apartment and credit tenant warehouses.
WHEN : The program works for both proposed projects using
Lender’s forward commitment capability with a tri-party agreement, and
older properties which have unrealized upside potential.
WHERE : In smaller county
towns and communities. In larger communities and cities where the
demand for development and purchase of investment grade properties is
often greater.
WHY :
Goal for this year is $250
to $300 million dollars of high quality participation loans.
Lender has targeted specific market niches where
other lenders are not as active. Utilizing the lenders credit enhancement,
we foresee the development of long- term relationships with the quality
borrowers who participate in this program.
INVESTMENT CRITERIA:
Lender will lend 100% of the Cost up to 85% of Value.
Includes all hard and soft costs ; leasing
commissions and other costs will be included, only if third party entities
are utilized.
TRI-PARTY AGREEMENT
issued up to 24 months. This allows for completion of improvements and
some level of leasing. Lender will fund construction loan without a
leasing requirement.
Construction, Perm & Equity Program
| Property Type |
Market Rate Multifamily, including Student & Senior Housing; for new construction, acquisition, and rehab Nationwide. Investor will consider equity capital only If debt also being processed simultaneously. |
| Priority Return |
Guaranteed return to Limited Partner fixed at 400 basis Points over the ten-year U.S. Treasury Rate rounded up To the nearest 1/8% with a floor of Ten percent (10%). |
| Distribution and
Allocation of Benefits |
After Priority Return to Limited Partner and Return of Capital Contributions, profits, losses and cash flow split (40% to General Partner and 60% to the Limited Partner). |
| Term |
7 to 10 years at which time the property must be sold or Refinanced or the Investment Limited Partner's interest Must be purchased. |
| Distribution of Net Proceeds |
Upon event of sale or refinance, net proceeds split 40% to the General Partner and 60% to the Limited Partner Receives a return of its Capital Contribution and a senior Residual return commensurate with its yield objectives. |
| Capital Contributions |
Paid in two installments based on needs of the Project. |
| Adjuster |
Capital contribution reduced upon stabilization if necessary So that there is a 1.10 Priority Return coverage. |
| General Partner Guarantees |
Lien free construction completion of Project, Priority Return; Payment of any Adjuster; and, Assurance that all Required insurance coverage will be maintained. |
| Transaction Costs
Due Diligence Fee |
Included with application for debt. |
| Other Costs & Fees |
Operating Partnership responsible for legal fees and Customary third party costs. |
| Annual Expense |
Operating Partnership responsible for annual site visits |
| Equity Fee |
3.5% of Equity Contribution. |
Small
& Miscellaneous Loan Programs
$250,000 to $2,500,000
--
Retail Auto Service, Gas Stations/Convenience Stores, Day Care Centers,
Fast Food Franchises, Retail Down/Apts Above, Mobile Home Parks, Small Apts-6 units +, Independent Hotel, Motel & Extended Stay Inns,
Self Storage, Office/Warehouse, Owner /Occupied Medical Buildings, All Income Producing Properties Will Be Considered
LAND LOANS --
Acquisition and Lot Development for Residential Subdivisions
Apartment- Commercial- Industrial - Mixed Use- Special Purpose
GOLF COURSES -- SPORTS CENTERS -- MARINAS
$5,000,000 to $75,000,000
www.Bloomberg.com
(click on "US Treasuries" for current rates)
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