Eyzenberg & Company partners with Greenworks Lending to launch Eyzenberg Green Capital, a joint venture uniquely dedicated to arranging C-PACE financing for commercial real estate transactions.

PROPRIETARY CAPITAL SOLUTIONS

Eyzenberg & Company affiliated entities, Eyzenberg Ground Lease Capital and Eyzenberg Green Capital, provide innovative proprietary solutions for CRE transactions.
GROUND GAME
Description Low-cost, 99-year unsubordinated ground lease options
Property & Transaction Types Acquisition, recapitalization, and 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 look-back 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
C-PACE RACE
Description Low-cost, long-term, non-recourse capital for new construction, gut rehabs, and value-add acquisitions of commercial real estate
Transaction Scenarios New development, acquisition with a heavy renovation component, or recapitalization in tandem with a redevelopment of the property
Funding Size $10MM - $150MM+ (smaller requests reviewed on a case-by-case basis)
Recourse No repayment or carry guarantee, completion guarantee burns off at TCO
Pricing 5% - 6.5% dependent on term, location, use, and leverage
Term/
Amortization
Self-amortizing (no balloon) with terms up to 30 years (based on estimated useful life of the improvements)
Max Lien-to-Value 90% (combined debt) for new developments; 95% for retrofits
Max LTV/LTC 25% of as-completed value / 30% of total capitalized budget for new developments (higher for retrofits)
Prepayment No lockout but subject to a pre-negotiated fee
Geography Currently active in 22 states plus D.C. with legislation approved in 38 states plus D.C.

RECENT CLOSINGS

Select completed transactions
$10MM Grocery Anchored Retail Portfolio | Acquisition | VA & NC
Structured and arranged a combination of long-term, fixed-rate senior debt and joint venture equity to capitalize the acquisition of two grocery-anchored retail shopping centers in Petersburg, VA & Norlina, NC.
$18MM Multifamily Property | Recapitalization | Memphis, TN
Placed a permanent loan to recapitalize a garden-style multifamily complex totaling 436 units in Memphis, TN
$15MM Marina, Hotel, & Retail Property | Predevelopment | Bridge Loan | Miami, FL
Arranged a short-term, fixed-rate bridge loan for the predevelopment efforts of a multi-phase mixed-use marina, hotel, and retail project located in Daytona Beach, FL.

CAPITAL SPOTLIGHT

Program summary of active capital providers
High-Leverage Structured Capital for Multifamily Transactions 
Capital Structure Preferred Equity, Mezzanine Debt
Description Closed-end fund offering a high-levered participating preferred equity program for owners and developers of income-producing commercial real estate
Property Type Multifamily, Student & Senior Housing
Investment Size $5MM - $75MM
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
Use Acquisition, Recapitalization, Development
Geography US
Joint Venture Equity for Heads-in-Beds Strategies in the Continental US 
Capital Structure JV Equity
Description Fully-integrated, internally-managed investment and asset management platform seeking to deploy capital into heads-in-beds strategies
Property Type Multifamily, Student & Senior Housing
Check Size $15MM - $75MM
Co-Invest 90% / 10%
Target Return
8% annual cash yield with targeted growth returns in upper mid-teens
Hold Period
1 - 7 years
Use
Acquisition, Recapitalization, Development
Geography US

RECA CORNER

Eyzenberg & Company is a member of the Real Estate Capital Alliance (reca.us). Below are the aggregate fourth quarter production statistics for all RECA members.