Capital Spotlight: Flexible Fixed-Rate Senior Perm Debt Provider for Stabilized Assets
For sponsors that are relationship driven, this multi-billion-dollar private credit group would serve as a valuable partner for a variety of financing needs. Offering low-cost bridge, stabilized subordinate, construction, and fixed rate perm debt they can serve as a one stop shop throughout the life of your deal. In this spotlight we have highlighted two of their facilities, which we find interesting in the market right now, their fixed rate senior perm loans and senior bridge debt.
Flexible and Competitive Fixed-Rate Debt
This lender provides fixed-rate senior perm loans with pricing of the 5-Year U.S. Treasury + 200-250 bps. The combination of competitive rates and a fixed structure is ideal for sponsors seeking predictable cash flow.
General Loan Terms
- Loan Size: $10MM to $60MM.
- Term Lengths: 3 to 30 years, offering sponsors the ability to align debt with long-term business strategies
- Loan-to-Value (LTV): 60-65% of stabilized value or acquisition plus hard costs
- Asset Classes: Multifamily, Self-Storage, Student Housing, and Senior Housing
- Geography: Primary, Secondary and Select Tertiary markets
- Other: ** willing to lend on 1970’s and 1980’s vintage properties, contingent on the asset’s basis and the strength of the market.
Aggressive Middle-Market Bridge Debt
This credit group is targeting upper-middle market value-add acquisitions facilitated by experienced sponsors. This includes their ability to structure high leverage by utilizing their own mezzanine program. The cost of Capital is SOFR+ 300-550 and SOFR+ 600 for the subordinated mezzanine slug.
General Loan Terms
- Loan Size: $50MM to $750MM.
- Term Lengths: 2 to 3 years
- Loan-to-Value (LTV): 70-80% LTC
- Asset Classes: Multifamily, Industrial, Retail, Office, Hospitality, Student Housing, and Data Centers
- Geography: Primary and Secondary markets
When to Consider This Lender
- Stabilized Acquisitions and Refinances: For sponsors looking to optimize their capital stack on stabilized acquisitions or refinances, this lender provides an alternative to CMBS or agency loans with competitive rates and terms.
- Light and Heavy Value-Add Strategies: Their flexible LTV sizing and willingness to work with older properties provide opportunities to add value to underperforming assets.
Why Choose This Lender?
With a variety of loan products, a sophisticated originations team and a streamlined lending process, this lender is efficient in their ability to quote and close a diverse array of transactions. Their perm product provides a competitively priced fixed rate product, pricing in the mid 6’s full term I/O, and can write as low as a $10MM check. Additionally, they have the flexibility to underwrite more sophisticated transactions in their bridge program.
Capital Structure Overview
| Capital Types | Fixed-Rate Senior Perm, Construction, Bridge, and Mezzanine Debt |
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| Vintage | Will lend on 1970s–1980s product (basis and market dependent) |
| Deal Types | Stabilized and near-stabilized refinances, CMBS/agency alternatives, light value-add, and Heavy Value-add |
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| Cost of Capital |
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| Term |
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| Closing Time Frame | 30-45 days |
If this capital source may be of interest, book a call to discuss a potential capital arrangement. Read our last Capital Spotlight: “Private Permanent” Agency/CMBS Alternative Offers 1.0X-1.15X DSCR up to 80% LTV