Multifamily, Industrial, Medical Office, Grocery-Anchored Retail, Self-Storage, and STNL.

Participating Mortgage Program

We are targeting $10mm-$50mm projects for both redevelopment and ground-up construction opportunities. Below is a quick summary that I am happy to jump on a call and discuss if you want. Please keep in mind these are just guidelines, and there is flexibility, and terms are subject to change on a deal-by-deal basis. I hope this helps.

Size: $10mm-$50mm+

Leverage: 80%-95%+ (Senior 1st mortgage)

Loan Term: 2-3 years beyond the construction period.

Asset Classes: Multifamily, Industrial, Medical Office, Grocery-Anchored Retail, Self-Storage, and STNL.

Structure: 5.50% coupon and participation in net cash flow and profit at exit.

Participation: As a guide, participation will be 30%-35% at 80%-85% leverage and 40%-50% at 90%+ leverage. The program maxes out at 85% LTC for spec deals and can get to 90%+ for de-risked opportunities such as build-to-suit or pre-leased properties.

Return on Cost: We are targeting a 7.0%-8%+ stabilized return on cost.

Recourse: Full through construction that burns off once the Property achieves a 1.0x dscr on an amortizing basis.

The financing is structured as debt, so the Sponsor receives 100% of the depreciation and the mortgage interest tax benefit. Finally, this is a balance sheet execution.

We do not have a targeted IRR, minimum multiple, or any hurdles, and there is no clawback in our program.