CAPITAL SPOTLIGHT

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 days 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, JV EQUITY
An international fund manager is deploying rare participating debt investments out of its multi-billion open-ended fund
.
Check size: $12-200MM
LTV: 90%
Rate: Current pay rate of 5-6% wih 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 borrowers equity
  • Preferred return of 7-9% to borrower
  • 50/50 share thereafter
Term: Closed to pay of 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 & 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 mezz, 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)