Today’s challenging economy has left many quality properties un-stabilized. More restrictive underwriting standards have left such properties unable to qualify for life insurance or CMBS loans. Additionally, significant headwinds in the banking system and the regulatory environment are forcing healthy banks to dramatically reduce their commercial real estate exposure and service only existing clients. For those banks that are willing to lend, their appetite is often limited to owner occupied properties, full recourse loans, and renewals for their most valuable existing clients.
Our mini-perm loan product fills the large void in the market created by the credit crisis and provides the critical bridge to get a property stabilized. Unregulated lenders, offer non-recourse loans even on un-stabilized properties. Our experienced team offers certainty of delivery on transactions under tight closing deadlines.
Mini-perm loans ranging from $1 million to $15 million
(larger loans considered on a case-by-case basis).
TYPICAL PROPERTIES (UN-STABLIZED)
- Apartments / Multi-family
- Flex (Office / Warehouse)
- Special-use (limited appetite)
- “Lease-Ups” that provide time to get property occupied
- Properties that don’t meet bank underwriting criteria
- Foreclosure purchases
- Discounted payoffs (DPOs)
- Construction loan take-outs
- Cash-out financing
- Repositionings / transitional properties
- Opportunistic purchases that need to close fast
- Interim bridge financing
- Refinancing of maturing loans
- Tight closing deadlines
- Properties exiting bankruptcy
- Insufficient cash flow generated by commercial real estate
- Sponsor cash flow or net worth constraints
- Short time frame for repayment
- Partner buyouts
- Properties owned under a Tenants-in-Common (TIC) structure
WHY CONSIDER US?
- Access to Numerous Investors And Lenders
- Non-recourse specialist
- Faster than a conventional lender
- Fills a void in market caused by stress in the community banking system
- Less expensive than bringing in an equity partner, especially on an after-tax basis
- Unique situations
- Transitional or un-stabilized properties
- Asset based underwriting
- Less expensive than a hard money lender
Call for more info or apply here.