Product Offerings
Construction Financing
Category | Target | Description |
|---|---|---|
Leverage | Debt Yield 100–200bps inside of market cap rate | • Targeting basis debt yield 150bps to 200bps inside of market cap rate on stabilized annual rent. Generally, less than 80% market value and <100% cost. |
Interest Rate | 11.0% to 14.0% | • Interest rate is a function of back leverage, borrower credit, developer experience, real estate fundamentals, asset type, etc. • On construction projects, interest payments will either accrue or be funded at loan origination via interest reserve, given the underlying collateral is not yet cash flowing |
Origination Fees | 1.00% to 2.00% per loan | • Origination Fee paid out of loan proceeds on borrower’s initial draw |
Exit Fees / Min. Multiple | 1.00% to 2.00% or corresponding repayment multiple | • Exit Fee/Minimum Multiple to protect yield on prepayment |
Term | 12 Months to 18 Months | • Borrower will receive 12-month base term with one or two six-month extension options • Extension options at Lender’s discretion • Borrower will pay fees should they elect to exercise the extension option |
Extension Fees | 1.00% to 2.00% per loan | • Extension options on underlying loans will vary project to project |
Servicing Fee | 0.15% to 0.30% per loan | • Retain a third-party to service the underlying loans • Servicing Fee charged to Borrower at initial draw help support this ongoing expense |
Recourse | Full or Partial Recourse | • All construction projects will feature full recourse and require completion guarantees from an underwritten Borrower (or affiliated) entity
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Bridge Financing
Category | Target | Description |
|---|---|---|
Leverage | Debt Yield 100–200bps over market cap rate | • Targeting debt yield 100bps to 200bps over market cap rate on stabilized annual rent. Generally, less than 80% market value. |
Interest Rate | 11.0% to 14.0% | • Interest rate is a function of back leverage, borrower credit, developer experience, real estate fundamentals, asset type, etc. |
Origination Fees | 1.00% to 2.00% per loan | • Origination Fee paid out of loan proceeds on borrower’s initial draw |
Exit Fees / Min. Multiple | 1.00% to 2.00% or corresponding repayment multiple | • Exit Fee paid out of loan proceeds on borrower’s initial draw or at borrower’s ultimate sale/refinance/exit
|
Term | 12 Months to 18 Months | • Borrower will receive 12–18-month base term with one or two six-month extension options • Extension options at Lender’s discretion • Borrower will pay fees should they elect to exercise the extension option |
Extension Fees | 1.00% to 2.00% per loan | • Extension options on underlying loans will vary project to project |
Servicing Fee | 0.15% to 0.30% per loan | • The Fund will retain a third-party servicer to help manage the underlying loans • Servicing Fee charged to Borrower at initial draw help support this ongoing expense |
Recourse | Full Recourse | • Full tenant & Guarantor recourse. |
Additional Compensation | • Profit participation on sale of assets
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