The Program Details

Property Types

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

Location

Nationwide in MSA's with populations of at least 300,000 with good long-term growth prospects.

Holding Period

Investment term of five to ten years is typical, but the Lender does not have a defined hold period. 

Yield Targets

Above 15% on a levered basis.

Sponsor Equity

Cash equity investment by the Sponsor is required. Percentage varies by transaction, Typically 4-5% of total Capital Stack. 

Leverage

Capital provider can provide Bridge Debt or is amenable to third-party financing depending upon the investment characteristics.
 

Project Involvement

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.

 

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