Financing commercial real estate projects and properties can take many different forms, depending on the type of transaction. The "traditional" types of financing are listed below, but our arsenal of funding strategies is not limited to just these types of structures.

In each of these types of financing, we deal directly with the funding sources – pension funds, hedge funds, portfolio lenders & investor pools – and can fund certain deals ourselves.

We will assist and advise our clients on the structuring and packaging of each deal to ensure that the best rates and terms of the financing are obtained.

By drawing upon all of our resources for each deal, we can reach the highest loan-to-value (advance rate) available in the market at the lowest total cost to produce the highest returns on investment for our clients.

Acquisition Financing – For the purchase of existing real estate to be used as owner-occupied, investment or income producing properties

Refinancing existing debt – For properties that are already owned and funding is needed to take out the existing debt. Purposes include lower interest rate, cash out, buyout a partner or the existing debt is reaching the end of its term.

Acquisition & Development Financing – For the purchase of a parcel of land that is to be developed as residential units or a commercial project. The funding can be split into two stages, one for the purchase and one for the construction, or under a single transaction where the purchase funds are included in the first construction draw.

Construction Financing – For new construction, expansions or rehabs of land or properties already owned. Scenarios may combine refinancing the underlying property to capitalize on existing equity, thereby lowering the cash investment needed.

Bridge Loans – Bridge loans are often used for commercial real estate purchases to quickly close on a property, retrieve real estate from foreclosure, or take advantage of a short-term opportunity in order to secure long term financing.

Bridge loans on a property are typically paid back when the property is sold, refinanced with a traditional lender, once the borrower's creditworthiness improves, the property is improved or completed, or there is a specific improvement or change that allows a permanent or subsequent round of “better” financing to occur. The term of a bridge loan can range from a few weeks to 2 to 3 years.

Mezzanine Financing – Mezzanine debt capital generally refers to that layer of financing between the senior debt and project equity, filling the gap between the two. Structurally, it is subordinate in priority of payment to senior debt, but senior in rank to common stock or equity. In a broader sense, mezzanine debt may take the form of convertible debt, senior subordinated debt or private "mezzanine" securities (debt with warrants or preferred equity).

Mezzanine debt is used in projects to fund further growth through expansion projects; acquisitions; recapitalizations; and, management and leveraged buyouts. When mezzanine debt is used in conjunction with senior debt it reduces the amount of equity required in the project. As equity is the most expensive form of capital, it is most cost effective to create a capital structure that secures the most funding, offers the lowest cost of capital, and maximizes return on equity.

Project Structuring – Scenarios that do not meet the criteria for the above types of programs will also be considered under a number of other strategies to get the deal funded. These include stock swaps, credit/asset enhancements, our proprietary hybrid bond offering, public offerings and direct equity investment.