Your Partner for Middle-Market CRE Financing
Partnering with a lender who is flexible to the nuances of middle-market transactions is essential. Our latest Capital Spotlight highlights a CRE lender offering fixed-rate permanent debt solutions for multifamily assets that market themselves as a competitive alterative to agency and CMBS lenders.
Middle-Market Sweet Spot: Flexible Loan Ranges
This lender’s core focus lies in providing tailored financing for small to mid-sized multifamily projects in strong secondary and tertiary markets. Their preferred loan size ranges from $5 million to $50 million, with a sweet spot between $10 million and $30 million. This flexibility ensures they can accommodate smaller deals while scaling up to meet the demands of larger transactions.
Competitive Terms for Stabilized or Near Stabilized Deals
Their offerings include five- to seven-year fixed-rate loans, ideal for stabilized multifamily refinancing, light value-add acquisitions, and new construction lease-up plays / construction take out. Borrowers benefit from higher proceeds compared to CMBS and agency products, competitive interest rates relative to private debt funds, and efficient processing, making this lender a standout option in the middle-market space. Key features include:
- Loan Terms: Flexible 5-7 years
- Check Sizes: $5 million to $50 million
- Leverage: Up to 80% Loan-to-Value (LTV)
- DSCR: 1.0X – 1.15X
- Pricing: 5 Year UST + 285 – 275
- Closing Timeframe: Streamlined process, typically closing within 45-60 days
- Market Coverage: Focus on primary and secondary U.S. markets
Capital Structure Overview
| Capital Structures | Permanent Senior Debt |
| Geography | All US MSAs will be considered – prefer primary and secondary markets, and willing to entertain tertiary markets with strong fundamentals. |
| Property Types | Multifamily |
| Deal Types | Stabilized acquisitions, light value-add acquisitions, and new construction lease-up plays / construction take out |
| Sponsorship | This fund prefers to work with experienced sponsors with a track record of completing similar projects, with strong balance sheet support. |
| Recourse | Non-recourse with bad boys |
| Check Size | $5MM-$50MM |
| Loan to Cost / Loan to Value | Up to 80% LTV / purchase price |
| Interest Rate / Returns | 5 Year Treasury +285-375 |
| Fees | One point on origination |
| Term | 5-7 Years |
| Closing Time Frame | 45-60 days |
| Approval Process |
|
| Prepayment | 5-4-3-2-1 (flexible pre-pay available) |
| Payment | Full term I/O |
| DSCR | 1.0X – 1.15X |
| Vintage | Preferably 90’s or newer but will look at 70’s and 80’s product |
If this capital source may be of interest, book a call to discuss a potential capital arrangement. Read our last Capital Spotlight: Versatile Construction Capital for CRE Sponsors