Capital Spotlight – Highlighting featured capital investors. We regularly publish the detailed criteria of our most unique real estate capital sources.

In the ever-evolving landscape of commercial real estate finance, developers and investors often find themselves at a crossroads when traditional banks tighten lending criteria or demand hefty deposit relationships for CRE loans. This challenge is particularly acute for projects outside the multifamily sector, where agency-backed financing isn’t an option. Enter a robust $10B+ private fund based in Canada, designed to bridge these financial gaps and propel projects forward. This fund offers a compelling solution with lending terms up to 65% LTV, focusing on interest-only (I/O) debt service with competitive rates in the high 6s. It’s an ideal fit for recently stabilized industrial properties demonstrating solid cash flows, or for grocery-anchored retail centers employing successful blend-and-extend strategies, located within the top 25-50 MSAs across the U.S.

Beyond permanent debt solutions, the fund manages three additional capital buckets: subordinate capital, construction debt, and bridge debt. With current economic pressures from supply-chain uncertainties and heightened interest rates, constructing new developments requires not only financial acumen but also strategic capital structuring. This fund excels in providing up to 80% LTC construction facilities, catering to multifamily, student housing, and industrial projects in high-growth MSAs—reserved for experienced sponsors.

In today’s market, having access to versatile capital sources and the ability to engage in creative financing structures is crucial. As such, ensuring a comprehensive exploration of available capital avenues is paramount for the savvy investor.

Senior Construction & Bridge Debt

Mezzanine & Preferred Equity

Permanent Debt

Project Type

Construction and Value-add

Value Add and Construction (Mezzanine only for Construction)

Stabilized or nearly stabilized assets

Geography

Nationwide
Specifically targeting the top 25-50 MSAs in the US

Nationwide
Specifically targeting the top 25-50 MSAs in the US

Nationwide
Specifically targeting the top 25-50 MSAs in the US

Property Types

Multifamily; Industrial; Student Housing; Grocery-Anchored Retail

Multifamily; Industrial; Student Housing; Grocery-Anchored Retail

Multifamily; Industrial; Student Housing; Grocery-Anchored Retail

Use of Funds

Construction; Acquisition; Refinance; Renovation Costs; Interest Reserves. Will fund cash out assuming the property has received added value, or has been seasoned.

Construction (mezz only); Acquisition; Refinance; Renovation Costs; Interest Reserves. Will fund cash out assuming the property has received added value, or has been seasoned.

Acquisition or Refinance (good news money available for TI/LCs)

Construction

Ground-Up; Heavy Value-Add; Redevelopment

Ground-Up; Heavy and Moderate Value-Add; Redevelopment

Stabilized / Light Value-add

Sponsorship

Sponsor should have at least 4-5 similar projects completed.

Sponsor should have at least 4-5 similar projects completed.

Flexible

Recourse

Typically, non-recourse, partial recourse in certain higher risk scenarios

Typically, non-recourse, partial recourse in certain higher risk scenarios

Non-recourse

Check Size

Bridge Debt: $30MM and up

Construction Debt: $50MM and up

$10MM +

$30MM and up

Max Loan to Value / Loan to Cost

Bridge Debt: 80% LTC

Construction Debt: 80% LTC max

(LTC is driven by stabilized debt yield)

80% LTC max

(LTC is driven by stabilized debt yield)

65% LTV max (as-is value)

Interest Rate

Bridge Loan: SOFR + 315 – 395 (8.45% – 9.25% today)

Construction Debt: SOFR + 425-600 (9.55% – 11.30% today) ** subject to leverage request, market, sponsor experience, and stabilized debt yield

14 – 16% (6-8% current Pay)

235 over Treasuries full-term fixed rate I/O

Loan Term

Bridge: 2, 1 (can be flexible)

Construction: 3,1,1

2,1 (can be flexible)

3, 5, 7-year options available

Origination Fees

Construction Debt: 0.75-1.25%

Perm Debt: 0.25-0.75%

1.5-2.0%

0.25% – 0.75%

Payment Structure

Full I/O

6-8% current pay with PIK

Full I/O

Prepayment Structure

18-24 months

18-24 months

3 years followed by step down

Underwriting Requirements

Targeting a 7.5% – 8.25% debt yield

(Capable of trending rents subject to market)

Targeting a 7.5% – 8.25% debt yield

(Capable of trending rents subject to market)

Perm Debt: 1.20-1.25X DSCR assuming I/O debt service

Deposits

Market standard deposit required upon signing of term sheet to fund appraisal, environmental, title, legal and property condition reports.

Market standard deposit required upon signing of term sheet to fund appraisal, environmental, title, legal and property condition reports.

Market standard deposit required upon signing of term sheet to fund appraisal, environmental, title, legal and property condition reports.

Closing Time Frame

45-60 days on average (can close as quickly as 4 weeks)

45-60 days on average (can close as quickly as 4 weeks)

45-60 days on average (can close as quickly as 4 weeks)

Approval Process

7-14 days for an approved term sheet

(subject to a complete underwriting file)

7-14 days for an approved term sheet

(subject to a complete underwriting file)

7-14 days for an approved term sheet

(subject to a complete underwriting file)

If this capital source may be of interest, book a call to discuss a potential capital arrangement.

Read our last Capital Spotlight: Capital Spotlight: PE Fund Stays Active, Making $1-30MM LP Investments with Local Value-Add Multifamily Operators