CAPITAL SPOTLIGHT

Unique to CMBS, a longer amortization program for senior loans – April 24, 2018
CAPITAL STRUCTURE: PERMANENT LOAN
An aggressive CMBS lender has rolled out a new program offering a 40-year amortization period for 90s+ vintage multifamily, industrial, and select office properties.
Check size: $5-$60MM
LTV: Up to 75% as-is value
Rate: Market spreads (180-200bps for full leverage) over SWAPS
Term: 10 years
Amortization: 40 years
Interest Only: Available for 1-3 years, or more on lower leverage
Property type: Multifamily, Industrial and select Office
Uses: Acquisitions, recapitalization
Geography: Nationwide
No Closing Costs: On loans over $30MM where leverage is 60% or less
Fixed Rate, Non-recourse institutional bridge loan program – April 17, 2018
CAPITAL STRUCTURE: BRIDGE LOAN
A New York-based investment manager is funding hybrid bridge loans that start out fixed-rate for the first two years. DSCR can be lower than one with reserves and structure.
Check size: $10-$35MM
LTV: Up to 75% loan to cost
Rate: 5.5% fixed for two years with two one-year extensions at 350 over 30-day LIBOR
Term: 2-4 years with extension options
Property type: Multifamily
Uses: Acquisitions, recapitalization, value add CAPEX repositioning, transitional assets
Geography: Nationwide
Non-recourse, institutional bridge loan program – December 11, 2017
CAPITAL STRUCTURE: BRIDGE LOAN
A West Coast fund manager has rolled out a cheaper version of its national bridge loan program targeting higher quality assets with some in-place cash flow.

Check size: $10-$40MM
LTV: The lesser of 80-85% as-is value or 70-75% of as-stabilized value
Rate: 375-550 over 30-day LIBOR
Term: 2-4 years, up to 5 with extension options
Property type: Multifamily, Industrial, Office, Retail, Student Housing, Hospitality, Self Storage
Uses: Acquisitions, recapitalization, value-add CAPEX repositioning, transitional assets
Geography: Nationwide
Non-recourse, subordinate debt and preferred equity platform – December 04, 2017
CAPITAL STRUCTURE: MEZZANINE DEBT, PREFERRED EQUITY
A private equity fund has rolled out a new structured product platform focused on smaller check size opportunities.

Check Size: $2-$8MM
LTV: Last dollar exposure of 70-85%
Rate: Low-to mid-teens
Term: 2-5 years
Property type: Primarily office and multifamily, and select industrial assets
Uses: Acquisitions, refinance and recapitalization
Geography: Atlanta, Austin, Charlotte, Chicago, Dallas, Denver, Houston and Raleigh
Non-recourse, participating construction or permanent loan structure – November 28, 2017
CAPITAL STRUCTURE: CONSTRUCTION LOAN, PERMANENT LOAN, PARTICIPATING LOAN
An international fund manager is deploying rare participating debt investments out of its multi-billion open-ended fund
.
Check size: $20-$200MM
LTV: 90%
Rate: Current pay rate of 5-6% with 50% operating cash flow participation post debt service
Waterfall: Upon a capital event; 
  • Repayment of mortgage
  • Preferred return of 7-9% to lender
  • Return of borrower's equity
  • Preferred return of 7-9% to borrower
  • 50/50 share thereafter
Term: Closed to pay off after 5-7 years
Property type: Multifamily, Industrial, Office, Retail, Student Housing, Hospitality, Self Storage
Uses: Acquisitions and/or development
Geography: Nationwide
Lower middle market joint venture equity program – November 21, 2017
CAPITAL STRUCTURE: JV EQUITY
A private equity firm is seeking to co-invest with local operating partners targeting value add opportunities.

Check size: $2-20MM
Co-Invest: 90%/10% to 50%/50% Return
Target: 9% current return in years 2-4. Overall 16% gross IRR
Term: 3-7 years Property type: Multifamily (Class C+ to A-), Industrial, Office, Retail.
Uses: Acquisitions and/or development
Geography: Nationwide 
Permanent, bridge and mezzanine loans and preferred equity targeting hotels – November 14, 2017
CAPITAL STRUCTURE: PERMANENT LOAN, BRIDGE LOAN, MEZZANINE LOAN and PREFERRED EQUITY
Hotel specialist providing various debt and equity products for select and limited service premium branded assets.

Check size: $5-$100MM for bridge and permanent loans, $1-$10MM for mezzanine and preferred equity
LTV: Up to 85% on bridge and mezzanine, up to 95% on preferred equity
Rate: Starting at 4.5% for senior debt and starting at 12%/13% with potential equity kickers for structured capital
Term: Bridge 2-5 years, mezzanine matched to senior and preferred equity up to 5 years
Property type: Hospitality-only uses, Acquisitions, Recapitalization, Construction Takeout, PIP/Renovation Financing, and Gap Financing
Geography: Nationwide
Construction-to-Permanent Loan Program – November 7, 2017
CAPITAL STRUCTURE: CONSTRUCTION LOAN, PERMANENT LOAN
An insurance company is funding large senior construction loans at a fixed rate (locked at application) that convert into the fixed-rate permanent loan.
Check size: $50MM+
LTV: Max 70%; typically 65% or less
Rate: Market spreads over treasuries
Term: 36 months of construction term followed by 7+ year permanent loan for total of 10-25 years
Property type: Multifamily, (high & mid-rise, wrap and podium construction, no suburban garden-style product)
Uses: Development
Geography: Top 10 metro areas in the U.S. (urban, in-fill locations)