We provide Permanent Financing on all income producing properties. Permanent loans are fixed or floating rate and a minimum of $1,000,000, with the loan term and amortization ranging from 5 to 30 years. The loan-to-value generally cannot exceed 75%, and the interest rate is priced over the corresponding US treasury rate or LIBOR index. Typically, a permanent mortgage acts as a take out of the existing mortgage or construction financing.
As an licensed MAP lender, we provided FHA-insured, fixed rate long term financing for apartments. FHA-insured loans can be for new construction with construction-permanent loans or permanent loans, including substantial renovation projects. These loans are non-recourse and can go as high as 85% Loan-to-Cost. Another type of financing available for multifamily properties are Freddie Mac and Fannie Mae loans that we process through our strategic alliance with PGIM Real Estate. Freddie and Fannie offer both fixed and floating rate loans, with loan terms between 5 and 30 years and amortization scheduled from Interest Only for the full term, partial interest only to 30 years. The loans are priced over the corresponding US treasury, are typically non-recourse, and can reach a loan-to-value of up to 80%.
We secure short term construction financing from banks to allow Borrowers to fund the development of their commercial or multifamily project. These loans are short term, generally 2 to 4 years, floating rate loans. We also secure construction-permanent loans from banks, life insurance companies, pension funds, and FHA/HUD. This execution allows the Borrower to lock in the fixed interest rate for both the construction period and the permanent loan term, therefore consolidating two transactions into one and saving the Borrower transaction costs.
Joint Venture / Preferred Equity
We secure both joint venture and preferred equity on ground up development, acquisitions, recapitalizations, and note purchases. Terms can vary widely on equity transactions depending on each partners role, the asset class, size of the investment, location / market, sponsor experience, return metrics, leverage used, and hold strategy. Our broad pool of capital can invest in all property types and investment sizes.
Bridge loans are short term, interim financing used for a property that is not fully stabilized and “bridge” the property until it is ready for a permanent loan. Bridge loans are typically higher leveraged, up to 90% Loan-to-Cost, floating rate, and are move expensive than a permanent loans.
Mezzanine financing is a hybrid of debt and equity financing that is typically behind a senior loan, secured by the Borrower’s interest in the property, short term (3 years +/-), and priced between the costs of debt and equity. Mezzanine loans can be used on development projects, renovation projects and stabilized assets. Mezzanine loan proceeds typically are at or below 90% loan-to-value.
Credit Tenant Lease Financing
We finance properties which are net leased to investment grade tenants. The tenants investment grade credit allows for substantially more aggressive financing than a typical permanent loan. Financing can generally go to 100% Loan-to-Value and as low as 1.0x DSCR. The loan can either be short or long term, but generally coincides with the tenants lease term.
Tax-Exempt Bond Financing
Tax-Exempt Bond Financing provides long-term below market interest rate financing for the construction, acquisition and rehabilitation of affordable rental housing or non-profit facilities, such as hospitals, universities, museums, etc. This financing type often comes with restrictions such as income limits for renters, or services to be provided by the non-profit facilities.