Capital Spotlight – Highlighting featured capital investors. We regularly publish the detailed criteria of our most unique real estate capital sources.
This CRE fund, based on the east coast, specializes in providing senior bridge and construction loans for a wide range of projects, from ground-up construction to heavy-value-add deals. With a national reach and a focus on strategic markets, this fund is designed to meet the diverse needs of experienced real estate developers. This fund offers a broad array of financing options, catering to various deal types, including ground-up construction, mid-construction, rehab, and acquisition. Their flexible approach ensures that developers can secure the necessary capital to move their projects forward.
Efficient Closing and Flexible Check Sizes
With a quick closing time frame of 10 to 28 days, this fund enables developers to act swiftly on opportunities. They offer check sizes ranging from $2 million to $25 million, providing substantial financial support tailored to the specific needs of each project.
Competitive Pricing and Terms
Investment terms range from 6 months to 48 months, catering to both short and medium-term project horizons. The fund’s maximum loan-to-cost (LTC) is 80%, which can stretch up to 85% if conservative underwriting assumptions support the leverage based on stabilized debt yield and LTV. Maximum loan-to-value (LTV) ratios range from 65% to 75%, depending on the asset class, deal term, market, and overall risk profile. Pricing on this product will range from 550 – 650 bps over SOFR, with both floating and fixed-rate optionality.
Flexible Recourse and Sponsorship Requirements
Recourse varies from non-recourse to full recourse, with construction deals requiring a completion guarantee from the sponsor. The fund prefers to work with experienced sponsors who have completed at least one or two similar projects, with general contractors who have a track record of comparable projects.
Strategic Expansion and Market Focus
Originally focused on self-storage along the East Coast, this fund has recently expanded into the other asset classes mentioned above. They typically prefer to invest in cities with populations of at least 100,000 people or in areas within 45 minutes of major metropolitan statistical areas (MSAs).
Conclusion
For real estate developers seeking creative and flexible bridge financing solutions, this CRE fund offers a unique blend of strategic focus, competitive pricing, and robust risk management. Their ability to bridge financing gaps for a variety of asset classes and deal types makes them an invaluable partner in achieving ambitious real estate goals.
| Capital Structures Offered | Senior Bridge Debt and Construction Debt |
| Geography | While they have a nationwide presence, their top states for investment include: Alabama (AL), Arkansas (AR), California (CA), Connecticut (CT), Washington, D.C. (DC), Delaware (DE), Florida (FL), Georgia (GA), Maine (ME), Maryland (MD), Massachusetts (MA), New Hampshire (NH), New Jersey (NJ), New York (NY), North Carolina (NC), Pennsylvania (PA), Rhode Island (RI), South Carolina (SC), Tennessee (TN), Vermont (VT), Virginia (VA), and West Virginia (WV). They typically prefer to invest in cities with populations of at least 100,000 people or in areas within 45 minutes of major metropolitan statistical areas (MSAs). |
| Property Types | This fund invests in a variety of asset classes, including multifamily, condominiums, self-storage, single-family rentals (SFR), recreational vehicle parks (RV), industrial, manufactured housing parks (MHP), credit retail, and entitled land. |
| Construction | Ground-up construction, mid-construction, rehab, and acquisition |
| Sponsorship | The fund prefers to work with experienced sponsors who have completed at least one or two similar projects, with general contractors who have a track record of comparable projects. |
| Recourse | Most loans are non-recourse. In the context of construction, there are completion and carry guarantees. |
| Check Size | Typically non-recourse with standard “bad-boy” carve outs; Typically will lean on the Senior guarantee requirements. |
| Check Size | $2MM to $25MM |
| Loan to Cost / Loan to Value | Usually up to 80-85%, in unique situations will go to 90% LTC (usually transitional assets). More focused on stabilized LTV and debt yield. |
| Sponsorship Equity Contribution | Sponsor must have skin in the game. Ability to write a 10-20% (of total cost) check (flexibility on a deal-by-deal basis) |
| Interest Rate / Returns | SOFR + 550-650 bps |
| Fees | 1-2 in, 0-1 out |
| Underwriting Requirements (Based on Investor’s UW) | Minimum last dollar debt yield for senior bridge debt: 8.0%-8.5%. |
| Term | 6-48 Months |
| Collateral Requirements | First Mortgage / UCC Lien |
| Deposits | Market standard deposit required upon signing of term sheet to fund appraisal, environmental, title, legal. Deposits are subject to deal size. (typical range: $40k-$75k) |
| Closing Time Frame | Can close in 10-14 days, typically 3-5 weeks. (from signing TS) |
| Approval Process |
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If this capital source may be of interest, book a call to discuss a potential capital arrangement. Read our last Capital Spotlight: Private Fund Offers Attractive Senior Perm Facilities as a Bank Alternative.