Valencia is actively seeking to connect well-qualified real estate investors, developers, and operators with our extensive network of capital sources. Our relationships are actively originating senior bridge loans, construction loans, and preferred equity facilities, catering to a diverse range of deal profiles and asset classes in strong primary, secondary, and tertiary markets across the United States.
These capital partners are typically focused on pursuing opportunities with significant value creation and are particularly interested in partnering with experienced sponsors who have demonstrated strong track records in their areas of specialization.
Through Valencia’s deep industry relationships, our in-depth understanding of capital underwriting requirements, and our proprietary underwriting system, we ensure opportunities are evaluated swiftly and efficiently. Our agile team is committed to understanding your unique needs and challenges, connecting you with the right capital sources, and negotiating the most competitive terms to help drive your success.
| Capital Structures Offered | Senior Bridge Debt; Senior Construction Debt, Preferred Equity (for Value-add deals and Construction) |
| Geography | Primary and Strong Secondary and Tertiary markets Nationwide. Can’t work with MSAs of <75,000 in population. |
| Property Types | Traditional Multifamily, BTR, Condominiums, Industrial, and Hospitality, and Grocery Anchored Retail. |
| Construction Profile | Light Value-Add, Heavy Value-Add, and Ground-Up Construction |
| Sponsorship | Comparable deal experience required |
| Recourse | Full-Recourse, Limited Recourse, and non-recourse options are available (subject to leverage level and deal profile) |
| Check Size | Senior Bridge: $7MM to $75MM Senior Construction: $10MM to $75MM Preferred Equity: $3MM to $20MM |
| Loan to Cost / Loan to Value (As-Is) | Senior Bridge: 70-80% LTC Senior Construction: 65 – 80%LTC (Selectively Groups will get to 85% in strong secondary markets and strong underwriting metrics). Traditional Preferred Equity: 75-85% LTC Participating Pref Equity: can size up to 65-80% of the equity requirements assuming bank or agency financing. |
| Max Loan to Value (Stabilized) | Senior Bridge: 60-70% LTV Senior Construction: 55 – 70% LTV Preferred Equity: 65-75% LTV |
| Debt Yield Requirements | Senior Bridge: 9.0%-10.0% +subject to asset class and markets Senior Construction: Typically 10%+ subject to asset class and markets Preferred Equity: 7.5% – 9.0% subject to asset ass class and markets |
| 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 | Senior Bridge (<$15MM): SOFR + 400-600 Senior Bridge (>$15MM): SOFR + 325 – 525 Senior Construction: SOFR + 600 – 750 Preferred Equity: SOFR + 850-1250 (all in, split between current payment and PIK/accrual). Full Accrual options available. |
| Fees | 1-2 points in, 0-1 points out |
| Term | Senior Bridge: 12-36 Months Senior Construction: 24-36 Months Preferred Equity: 18-36 Months |
| Closing Time Frame | Senior Bridge: Typically 30-60 days for signing of the term sheet (3-4 week closing timelines can be accommodated with certain deal profiles). Preferred Equity: 45-60 Days (from signing TS) |
| Approval Process |
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