While we could have never predicted what was waiting for us this quarter, we are pleased to share some highlights from this period. Earlier this year, we continued our expansion with the opening of a Miami office. In light of current market conditions, we continue to seek out like-minded individuals to join our growing team to help our clients capitalize on opportunities. While maintaining our focus on Ground Lease Capital, we’ve made inroads into further developing our proprietary C-PACE product – what has turned out to be quite useful in the way of retroactive rescue capital. Additionally, with a number of recent closings, we've maintained our momentum in arranging development capital for Single Family Rental Housing.
RECENT CLOSINGS
Select completed transactions
$65.9MM Land Parcel | Recapitalization | Miami, FL
Structured and arranged a fixed-rate bridge loan to fund pre-development costs for a mixed-use hotel and multifamily project.
$47MM Multifamily Property | Recapitalization | Fairfield, CT
Restructured and upsized a multi-tier capital stack to retire the existing investor base.
$43MM Single Family Rental Housing | Construction | Lebanon, TN
Structured and placed a revolving first mortgage construction loan for the development of a 110-building, 224-unit multifamily community.
$100MM+ Student Housing Leasehold Development | Blacksburg, VA
Structured a ground lease and appointed a developer for a 11.5-acre, 517,000-square-foot, 424-unit, purpose-built student housing complex located near the Virginia Tech campus.
CAPITAL SPOTLIGHT
Program summary of active capital providers
| Capital Structure | Bridge Loan |
| Description | Closed-end fund not dependent on the CLO market and utilizing lower leverage credit facilities has avoided mark-to-market and margin calls provision |
| Property Type | Multifamily, Multi-tenant Industrial (in infill locations), CBD and/or Transit-Oriented Office, Performing Hotels (on select basis) |
| Investment Size | $10MM - 75MM |
| Leverage | Up to 75% LTV on post-COVID pricing |
| Rates | 5.5% - 6.0% over LIBOR with a 0.50% floor |
| Fees | 0% in with 1.0% - 1.5% exit |
| Term | Up to 3 years |
| Amortization | Interest-only |
| Future Funding | Holdbacks for renovations and "good news" |
| Uses | Acquisition, Recapitalization, and Repositioning |
| Geography | Nationwide |
| Capital Structure | Bridge Loan, Permanent Loan |
| Description | Large international life insurance company providing a low-cost and flexible alternative to banks and domestic insurance company options |
| Property Type | Office, Mixed-Use, Self Storage, Flex, Industrial, Hotel, and Multifamily |
| Investment Size | $10MM - 40MM |
| Leverage | Up to 70% LTV on post-COVID pricing; Lower for retail and hospitality |
| Rates | Starting at 3.5% over LIBOR on floating and low 4s all-in rate on fixed basis |
| Fees | 1% in |
| Term | Up to 7 years + extension |
| Amortization | IO options available |
| Future Funding | Holdbacks for renovations and "good news" |
| Uses | Acquisition, Recapitalization, and Repositioning |
| Geography | Top 25 U.S. markets |
CURRENT OFFERINGS
Select Deals in the Market Seeking Capital
Ground Lease
$48MM | Multifamily | Development | Greenwich, CT
Bridge Loan
$7MM | Office | Recapitalization | Laguna Niguel, CA
Bridge Loan
$35MM | Land | Development | Memphis, TN
Bridge Loan
$4MM | Office | Recapitalization | Los Angeles, CA
Ground Lease
$175MM+ | Mixed Use | Development | Miami, FL
JV Equity
$50MM+ | Distressed | Acquisition | Various
RECA CORNER
Real Estate Capital Alliance (RECA) Quarter 1 Production Statistics.
Eyzenberg & Company is a proud member of the Real Estate Capital Alliance (reca.us). RECA members arranged over $4.8 billion in capital in 2019. Below are RECA production statistics for Quarter 1 of 2020.
Eyzenberg & Company is a proud member of the Real Estate Capital Alliance (reca.us). RECA members arranged over $4.8 billion in capital in 2019. Below are RECA production statistics for Quarter 1 of 2020.
