Debt Finance
We provide debt options for the full life cycle of your commercial real estate investments.
General guidelines for debt financing
Bridge Loans
Minimum $5,000,000
- All major asset classes
- Funds used for value add acquisition, asset repositioning, or recapitalization
- Up to 80% loan to cost for value add and repositioning
- Up to 75% loan to value for hard money loans
- Floating rate
- Lender origination and exit fees; exit fees are generally waived if refinanced with the same lender
- Term of 1 – 3 years with extension options
- Interest only for the initial term; amortization may be required during extension periods
- Non-recourse except standard carve-outs and completion guarantees
- Escrow of future capital requirements to execute the business plan; future funding facility in lieu of escrow available on a case-by-case basis
Permanent Debt
Minimum $5,000,000
- All major asset classes
- Funds used for acquisition or refinancing
- Up to 75% loan to value
- Fixed-rate
- Terms of 5, 7, or 10 years; longer terms available on some transactions
- Amortization is generally required; interest-only periods may be available
- Non-recourse except standard carve-outs
- Escrows required for taxes and insurance
- Escrows may be required for leasing rollover costs
Construction Loans
Minimum $10,000,000
- Preferred asset classes include multifamily, manufactured housing, industrial, and single-tenant NNN
- Funds for ground-up construction
- Smaller balance funding is available on a case-by-case basis
- Generally up to 65% loan to cost; up to 80% loan to cost available on a case-by-case basis
- Floating rate
- Term of 2 – 3 years with possible extension options
- Completion guaranty required
- In addition to standard carve-outs, additional recourse may be required
- Fully entitled transaction
Capital Sources
Types of Debt Financing Relationships
- Private finance companies
- DUS Lenders (Fannie, Freddie, HUD)
- CMBS
- Banks
- Insurance companies
- Hedge funds
- Credit unions