Senior Debt

An efficient debt execution is one where the financial strategy and structure are complementary to the business strategy of the borrower. The position of an asset in its life cycle will dictate the structure and nature of the corresponding financing.

We source, structure and close the following senior debt loans:

  • Land loans for pre-development deals
  • Construction loans for development deals
  • Permanent financing for stabilized assets
  • Bridge loans for transitional opportunities
  • Credit facilities for fund or loan leverage
  • CTL structures for single-tenant credit deals
  • Bifurcated A/B notes
  • Tenant improvements financing
  • Leased Fee and/or Leasehold financing

We maintain ongoing relationships with a diverse constituency of senior debt providers including:

  • Commercial Banks / Credit Unions
  • Life / Casualty Insurance Companies
  • Pension Plans
  • Credit Companies
  • Mortgage REITs
  • Real Estate Private Equity / Hedge Funds
  • Union Funds
  • CMBS/CDO/CLO/CMO Conduits
  • SBA/SBIC
  • HUD/FNMA/Freddie Mac in the US & CMHC in Canada
Though most borrowers tend to focus on rate, there are many other nuanced key terms to be negotiated.

Construction loan key terms:

  • Magnitude, counterparty and timing of completion and/or principal/interest, and carve-out guarantees
  • Basel III structuring requirements
  • Presale/Preleasing minimums¬†
  • Lockout/Prepayment clauses
  • Timing of equity contributions by the sponsor
  • Release provisions
  • Amount and allocation of budgeted contingencies
  • Additional credit support
  • Treatment of land equity vs. cash investment
  • Syndication requirements
  • Timing and percentage of retainage for contractor and subs
  • GMP versus other construction contracts

Bridge and permanent loan key terms:

  • Magnitude, counterparty and timing of carve out and/or principal/interest guarantees
  • Reserve requirements
  • Escrow calculations
  • Amortization terms
  • Interest-only periods
  • Discount points
  • Debt yield requirements
  • Loan maturity
  • Prepayment penalties
  • Lockbox provisions
  • Assumability and assignment options
  • Holdbacks vs. earn-out future funding
  • Title, estoppel, insurance requirements