CAPITAL SPOTLIGHT

Low cost, 99-year unsubordinated ground lease options
CAPITAL STRUCTURE: GROUND LEASE
Eyzenberg LFC creates and acquires 99-year, unsubordinated ground lease options in tandem with its institutional partners.
Property & Transaction Types: Acquisition, recapitalization & development of all income-producing asset classes
Transaction Size: $10MM - $150MM+
Pricing: 3.75% - 5% acquisition cap rate dependent on the asset class, location, percentage of the total value, coverage, development, etc…
Purchase Price: Approximately 20% - 35%+ of the total property (fee simple) value
Ground Rent Coverage: 3x - 5x of stabilized NOI (depending on asset class and deal specifics)
Rent Escalation: Flexible options include fixed steps, CPI adjusters (with or without caps and lookback resets), percentage rent or flat/ramp up options
Buy-back Options: Deals can be structured with options priced in
Leasehold Financing: Ground leases are structured to accommodate current balance sheet and securitization requirements enabling leaseholds to be easily financed
International life insurance company seeking to gain market share is actively lending
CAPITAL STRUCTURE: BRIDGE LOAN, PERMANENT LOAN
Large international LifeCo providing low cost and flexible alternative to banks and domestic insurance company options.
Property Type: Office, Mixed-Use, Self Storage, Flex, Industrial, Hotel, and Multifamily.
Check size: $10 - $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: Acquisitions, Recapitalization and Repositioning
Geography: Top 25 U.S markets
Bridge lender not dependent on internal leverage actively lending
CAPITAL STRUCTURE: BRIDGE LOAN
Closed end fund not dependent on the CLO market and utilizing lower leverage credit facilities has avoided mark-to-market & margin calls provision.
Property type: Multifamily, multi-tenant Industrial in infill locations, CBD and/or transit-oriented Office, performing Hotels on a very select basis.
Check size: $10 - $75MM
Leverage: Up to 75% LTV on post-COVID pricing.
Rates: 5.5% - 6.0% over LIBOR with a .50% floor
Fees: 0% in w/ 1%-1.5% exit
Term: Up to 3 years
Amortization: Interest only
Future Funding: Holdbacks for renovations and "good news"
Uses: Acquisitions, Recapitalization, and Repositioning
Geography: Nationwide
Joint venture equity for heads in beds strategies in the continental US
CAPITAL STRUCTURE: JV Equity
Fully integrated, internally managed investment and asset management platform seeking to deploy capital into heads in beds strategies.
Check size: $15 million - $75 million
Co-Invest: 90%/10%
Target returns: 8% annual cash yield with targeted growth returns in upper mid-teens 
Hold period: 1-7 years
Property type: Multifamily, Student & Senior Housing
Use: Acquisition, Recapitalization, Development
Geography: US
High leverage structured capital for multifamily transactions
CAPITAL STRUCTURE: PREFERRED EQUITYMEZZANINE DEBT
Closed end fund offering a high levered participating preferred equity program for owners and developers of income-producing commercial real estate.
Investment size: $5 million - $75 million
Leverage: Last dollar up to 95% LTV
Pricing: Low to mid-teens pricing dependent on risk
Pay structure: ranges from 100% accrual preferred equity to 25% current pay mezzanine debt
Term: up to 7 years, open to prepayment at any time subject to minimum equity return multiple
Property type: Multifamily, Student & Senior Housing
Use: Acquisition, Recapitalization, Development
Geography: US
Flexible bridge loans for value add opportunities
CAPITAL STRUCTURE: BRIDGE LOAN
Midwest asset management firm seeking to fund acquisition and renovation plays nationwide
Property type: Student/Multifamily Housing, Self-Storage, Retail, Office, MHP's and Hospitality
Check size: $10 - $75MM
Leverage: Up to 85% LTC / 75% LTV
Rates: Spreads to LIBOR of 2.5% - 4.5%
Term: Up to 5 years
Amortization: Interest only
Future Funding: Holdbacks for renovations and "good news"
Uses: Acquisitions, Recapitalization and Repositioning
Geography: Nationwide
Partial/non-recourse bridge and construction loans
CAPITAL STRUCTURE: BRIDGE LOAN, CONSTRUCTION LOAN
An aggressive East Coast Bank has dropped pricing for construction and bridge loans across various asset classes.
Check size: $20-$150MM
LTV: Up to 70% for Multifamily and 65% for all others
Rate: Spreads ranging from high 1s to low 2s on transitional assets and high 2s to mid 2s for construction transactions Recourse: non-recourse for bridge loans and 20-25% recourse for construction loans with burn offs
Term: 3 to 7 years
Amortization: 30 years for multifamily and 25 years for all other asset classes
Interest Only: Up to four years
DSCR sizing: 1.15x
Structured Capital Friendly: Allow mezzanine debt up to 80% and preferred equity up to 90%
Asset Types: Multi-family, condo, office, retail, hotel, mixed use, industrial, self-storage, parking, some land
Geography: East of the Mississippi, Boston to Key Largo
Fund manager writing long term loans
CAPITAL STRUCTURE: PERMANENT LOAN
Asset management firm providing balance sheet execution for core+ permanent loans
Property Type: Student/Multifamily Housing, Self-Storage, Retail, Office, MHP's and Hospitality
Check size: $10 - $75MM
Leverage: Up to 85% LTC / 75% LTV
Rates: Spreads to Treasuries of 150 bps+
Term: Up to 15 years
Amortization: Interest only
Future Funding: Earn Outs for performance-based goals
Uses: Acquisitions & Refinance
Geography: Nationwide
Joint Venture equity for middle market value add transactions
CAPITAL STRUCTURE: JV Equity
Closed-end fund offering a longer-term hold period is seeking to deploy discretionary funds into pari-passu promotable LP positions
Check size: $1 million - $10 million
Co-Invest: 95%/5% to 50%/50%
Target returns: 5% to 8% annual cash yield with targeted growth returns in upper mid-teens.
Hold Period: 5 - 10 years
Property type: Multifamily, retail, office and industrial
Use: Acquisition and/or recapitalization
Geography: Midwest, Southeast and Southwest
Non-Recourse fixed rate small balance loans
CAPITAL STRUCTURE: PERMANENT LOAN
CMBS lender rolls out a new program offering streamlined documentation and fixed low closing costs for fixed-rate loans.
Check size: $1.5-$5MM
LTV: Up to 75% as-is value
Rate: Market spreads (180-220bps for full leverage) over SWAPS
Term: 10 years
Amortization: 30 years
Non-Recourse: Limited to standard carve outs
Property type: Industrial, Retail, Office, Hotel, Multifamily, Self-Storage, Net lease, & MHP
Uses: Acquisitions, recapitalization
Geography: Nationwide Fixed Closing
Costs: $25,000 for lender legal and all third parties
Loan Documentation: Abbreviated securitization agreements
Specialty asset bridge, construction and mezzanine debt
CAPITAL STRUCTURE: BRIDGE LOAN, CONSTRUCTION LOAN, MEZZANINE DEBT 
Newly formed finance arm of private equity vehicle seeking to deploy capital for senior housing, medical offices, student/multifamily housing, self-storage. 
Check size: $10 - $500MM
LTV: Up to 85% LTV/LTC
Rates: Spreads to LIBOR of 2.5% - 5.5% (first mortgage) or 6.0% - 10.0% (mezzanine/preferred equity)
Term: Up to 7 years
Amortization: Typically interest only
Property type: Senior Housing, Medical Office, Student/Multifamily Housing, Self-Storage
Uses: Development, Acquisitions, Recapitalization
Geography: Nationwide
High leverage flexible long-term balance sheet financing
CAPITAL STRUCTURE: PERMANENT LOAN
An aggressive Bank lending in the top 200 MSAs offering flexible long-term balance sheet financing for Multifamily, Industrial, Retail, Office, Medical Office, Self-Storage & Student Housing
Check Size: $3MM - $50MM 
LTV: Up to 80% for Multifamily and 75% for all others
Rate: Spreads ranging from 1.25% to 2% dependent on asset class, leverage and term
Recourse: Non-recourse, partial, and full options available
Term: 5 to 15 years
Amortization: 15 to 30 years
Interest Only: Available for 3 to 10 years based on leverage variation below 65%
Forward Rate Locks: Up to 12 months as early as commitment
Prepayment Flexibility: Step downs with option to buy down
Reserves: No Tenant Improvement reserves, only for Taxes & Insurance
Geography: Must have population greater than 75,000 within a 5 mile radius of the asset
Closing Costs: $9,500 to $25,000 depending on size 
Participating preferred equity program for existing and development properties
CAPITAL STRUCTURE: PREFERRED EQUITY
Closed end fund offering a high levered participating preferred equity program for owners and developers of income producing commercial real estate
Investment size: $1 million - $20 million
Leverage: Last dollar up to 97%
LTV Pricing: 8.5% - 10% preferred return plus negotiated percentage of excess cash flow and residual profit (15% to 45% depending on risk/reward)
Term: Up to 10 years, open to prepayment at any time through sale or refinancing. If through refinancing, the Preferred Equity provider retains its participation until earlier of sale or original term.
Property type: Multifamily, retail, and self-storage assets Use: Acquisition, Recapitalization, Development
Geography: USA and Canada
Fees: 1% commitment
Unique to CMBS, a longer amortization program for senior loans 
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 
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 
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 
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 
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 
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 
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 
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)