Multifamily, industrial, office and retail properties. Other – Defaulted promissory note purchases where Sponsor formulates and presents a plan to reposition the asset after acquisition of the promissory note.
Multifamily Acquisition Parameters
Existing Class B and C workforce housing Apartments with 100+ units built in the 1970s –early 1990s in markets with 100,000+ populations with stabilization/repositioning risk that can be acquired substantially below replacement cost.
Total Project Budget:
$3,000,000 to $25,000,000
Nationwide in MSA's with populations of at least 300,000 with good long-term growth prospects.
Investment term of five to ten years is typical, but the Lender does not have a defined hold period.
Above 15% on a levered basis.
Cash equity investment by the Sponsor is required. Percentage varies by transaction, Typically 4-5% of total Capital Stack.
Capital provider can provide Bridge Debt or is amenable to third-party financing depending upon the investment characteristics.
Capital Provider prefers to be involved in a potential investment as early as possible and must be involved prior to Purchase and Sale Agreement execution at a minimum. After acquisition, the Sponsor will act as the managing member while the capital provider takes on the role of a limited partner maintaining approval rights over major decisions such as sales, refinances, loan modifications and changes to the approved budgets.