Your Partner for Luxury Projects
In the competitive world of commercial real estate finance, finding a versatile lender with a track record of success is crucial. Our latest Capital Spotlight highlights a CRE lender offering three distinct programs tailored to meet the diverse needs of today’s investors and developers.
Core-Plus/Value-Add Debt: Flexible Financing Solutions
This program caters to a broad range of property types, including single-family rentals, condos, multifamily, and mixed-use developments. With loan amounts ranging from $2 million to $300 million, the lender offers up to 65% LTC for core-plus assets and 75% LTC for value-add opportunities, both targeting a 75% stabilized LTV. Interest rates start in the 9% range for core-plus and 10% for value-add, with flexible 6-36 month terms. The lender’s nationwide reach, ability to close in under 30 days, and total fees of 1.5-2% set this program apart. They excel at working with complex borrowers and crafting creative solutions for unique situations.
Large Balance Construction: Substantial Financing for Major Projects
Designed for projects requiring $50-300 million, this program covers single-family homes, multifamily, mixed-use, retail, land, and condos. The lender provides up to 60% LTV for acquisitions and 75% LTC for construction, with pricing starting at 9.5% for acquisitions and 10.5% for construction. With 6-36 month terms and 1.5-2% total fees, this program’s key advantages are the ability to close in under 30 days and an expedited draw/requisition process, addressing common pain points in construction lending.
Luxury SFH Construction: A Niche Expertise
This lender has carved out a unique position in the luxury single-family home construction market, having closed over 50 such facilities in the past 24 months. Their industry-leading underwriting methodology for deriving expected sale values sets them apart in this niche. Key terms for luxury SFH construction financing include:
- Loan amounts: $2 million to $300 million
- Leverage: Up to 75% LTC, targeting 75% stabilized LTV
- Interest rates: Starting in the low 10% range
- Term length: Flexible 6-36 month options
- Total fees: 1.5-2.0% (split between origination and exit)
- Closing timeframe: Ability to close in under 30 days
- Markets: Primary and secondary markets nationwide
The lender’s expertise extends to complex borrower structures, creative deal structuring, and comfort with distressed assets or rescue capital scenarios. This makes them an ideal partner for luxury home developers navigating challenging or unique project circumstances.
Conclusion: A Versatile Capital Source
This CRE lender’s three programs provide tailored solutions for a wide range of real estate investment and development scenarios. Their combination of competitive terms, rapid execution, and willingness to tackle complex situations makes them a valuable partner in today’s dynamic market. Whether you’re acquiring, developing, or constructing, this lender’s creative approach and market understanding can help execute your strategy successfully.
| Capital Structures | Senior Bridge Debt and Construction Debt |
| Geography | Primary and Secondary markets Nationwide. |
| Property Types | This fund invests in a variety of asset classes, including multifamily, condominiums, self-storage, luxury single-family. |
| 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 | $3MM to $150MM |
| Loan to Cost / Loan to Value | Usually up to 80% LTC. 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 + 500-800 |
| Fees | 1-2 in, 0-1 out |
| Term | 6-36 Months |
| Underwriting Requirements (Based on Investor’s UW) | Minimum last dollar debt yield for senior bridge debt: 8.0%-8.5%. |
| 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-$60k) |
| Closing Time Frame | Can close inside of 3 weeks, 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 Market Insight: Quick Closing Bridge Capital for Middle Market Investments