Transaction Metrics
Our Investment Parameters and Deal Structures
Transparency is key. Below are key metrics for our STNL financing, tailored for larger, transitional deals (e.g., development or M&A roll-ups). We focus on protecting returns while offering flexibility
Key Parameters
Debt Yield Spread
100-150bps over prevailing market cap rates
Loan-to-Cost (LTC)
Less than 95% of total
costs.
Loan-to-Value (LTV)
Less than 85% of market value.
Points & Fees
Upfront points for origination.
Interest Rates
Competitive, short-term rates aligned with 12-18 month durations.
Profit Participation
Shared upside on asset performance or disposition.
Exit Fees & Protections
Minimum multiples or exit fees on underlying loans to safeguard against prepayment and ensure returns.
Deal Size Minimum
$25M
Sectors We Target
- Retail (e.g., QSRs, big-box)
- Industrials & Logistics
- Office
- Specialty (e.g., education centers, bank branches, data centers)
Example Deal Structure
For a $50MM development loan: 150bps spread over 6.8% cap rate, 90% LTC, 80% LTV, 2% points, exit fee of 1x multiple, plus 20% profit participation on sale.