Distressed Loan Details

Small-Medium balance debt opportunities ($1,000,000 - $15,000,000) and select joint venture equity participations with owners operators and developers throughout the nation.
 
 
Types of Investments:
 
Seasoned Performing Sub-Performing & Non-Performing Loans
Financing of Borrowers with Cash to Repurchase Notes at a Discount
Institutional and Non-Institutional Quality Real Estate and REO
Purchase Money Mortgages and Seller Paper
CMBS – Commercial Mortgage Back Securities
Municipal Revenue Bonds
Debtor in Possession Financing
Tax Liens
Charge-offs
Structured Settlements
No Raw Land Loans
 
 
Fixed Rate Bridge Loans – $300,000,000
 
 
Eligible Properties:
 
Multifamily
Retail
Office
Light Industrial & Warehouse
Self-storage
Hospitality
Healthcare & Skilled Nursing Facilities
Special Purpose & Mixed Use
Mobile Home Communities
Condominium Inventory
 
 
Targeted Transactions:
 
Opportunistic Acquisition Financing
Quick Close Special Situations
REO & Non-Performing Loan Acquisitions
Recapitalizations & Partnership Buyout
1031 Exchange Deadlines
Significant Rehabilitation & Renovation
Minimal Yield Maintenance Protection
 
 
Financing Parameters:
 
Timing to Close: 5-15 Days From Application

Loan Size: $2,000,000 to $30,000,000

LTC: Up to 75% LTC (maximum advance to 85% LTC
with inclusion of “B-piece” in tiered transactions)

Lien Position: First Mortgage or Deed of Trust with Pledge of LLC interests or Note Hypothecation for Note-on-Note Financing Transactions

Loan Term: 6 to 24 Months initial term (3 year maximum, including extensions)

Extensions: 6 to 12 Months extensions, available at market extension fees.

Interest Rate: 8.00% -10.50% fixed

Amortization: Interest-only

DSCR: Below 1.0X DSCR acceptable if supported by a Interest Payment Reserve

Yield Maintenance: Minimal pre-payment penalty

Recourse: Non-recourse, other than standard “bad boy acts” or Recourse for higher risk transactions

Deposits: Expense deposit adequate to cover third party reports, legal fees and other customary deal costs. No fees to lender required during underwriting.

Origination & Exit Fees Origination: 1.5%-2.5% & Exit: 0.5% to 1.0% (determined on a case-by-case basis)
 
 
Return to: Distressed Debt Page
 
 
 
Short Term Floating Rate Mortgages – $400,000,000
 
 
Eligible Properties:
 
Multifamily
Retail
Office
Light Industrial & Warehouse
Hospitality
 
 
 
 
 
 
 
Targeted Transactions:
 
Value-Add Acquisitions
Lease-up or Upcoming
Rollover Transition
Recapitalizations &
Discounted Payoff Financing
Refinance with Sale Flexibility
 
 
 
Financing Parameters:
 
Time to Close:  20-35 Days from Application

Loan Size:  $5,000,000 to $20,000,000

LTV:  Up to 75% LTV “as stabilized” / 80% LTC of total project
Lien Position:  First Mortgage or Deed of Trust with Pledge of LLC interests

Loan Term:  2, 3, or 4 year initial term (5 year maximum, including extensions)

Extensions:  1 Year or 6 Month extensions, available at market extension fees.

Interest Rate:  30-day LIBOR + 525bps to 750bps

Amortization: Interest-only

DSCR: Below 1.0X DSCR acceptable if supported by a Interest Payment Reserve

Yield Maintenance:  Pre-payable at any time subject to minimum interest equal to 50% to 75% of the Loan Term (determined on a case-by-case basis).

Recourse: Non-recourse, other than standard “bad boy acts”
Deposits: Expense deposit adequate to cover third party reports, legal fees and other customary deal costs. No fees to lender required during underwriting.

Origination & Exit Fees Origination: 1.0% & Exit: 0.5% to 1.0% (determined on a case by-case basis)
 
 
 
 
 
Return to: Distressed Debt Page