GROUND GAME
EYZENBERG GREEN CAPITAL OFFERS C-PACE FINANCING
Eyzenberg & Company partners with Greenworks Lending to launch Eyzenberg Green Capital, a joint venture uniquely dedicated to arranging C-PACE financing for commercial real estate transactions.
PROPRIETARY CAPITAL SOLUTIONS
Eyzenberg & Company affiliated entities, Eyzenberg Ground Lease Capital and Eyzenberg Green Capital, provide innovative proprietary solutions for CRE transactions.
| Description | Low-cost, 99-year unsubordinated ground lease options |
| Property & Transaction Types | Acquisition, recapitalization, and development of all income-producing asset classes |
| Transaction Size | $10MM – $150MM+ |
| Pricing | 3.75% – 5% acquisition cap rate (dependent on the asset class, location, percentage of the total value, coverage, development, etc.) |
| Purchase Price | Approximately 20% – 35%+ of the total property (fee simple) value |
| Ground Rent Coverage | 3x – 5x of stabilized NOI (depending on asset class and deal specifics) |
| Rent Escalation | Flexible options include fixed steps, CPI adjusters (with or without caps and look-back resets), percentage rent, or flat/ramp-up options |
| Buy-back Options | Deals can be structured with options priced in |
| Leasehold Financing | Ground leases are structured to accommodate current balance sheet and securitization requirements, enabling leaseholds to be easily financed |
C-PACE RACE
| Description | Low-cost, long-term, non-recourse capital for new construction, gut rehabs, and value-add acquisitions of commercial real estate |
| Transaction Scenarios | New development, acquisition with a heavy renovation component, or recapitalization in tandem with a redevelopment of the property |
| Funding Size | $10MM – $150MM+ (smaller requests reviewed on a case-by-case basis) |
| Recourse | No repayment or carry guarantee, completion guarantee burns off at TCO |
| Pricing | 5% – 6.5% dependent on term, location, use, and leverage |
| Term/ Amortization | Self-amortizing (no balloon) with terms up to 30 years (based on estimated useful life of the improvements) |
| Max Lien-to-Value | 90% (combined debt) for new developments; 95% for retrofits |
| Max LTV/LTC | 25% of as-completed value / 30% of total capitalized budget for new developments (higher for retrofits) |
| Prepayment | No lockout but subject to a pre-negotiated fee |
| Geography | Currently active in 22 states plus D.C. with legislation approved in 38 states plus D.C. |
RECENT CLOSINGS
Select completed transactions
CAPITAL SPOTLIGHT
Program summary of active capital providers
High-Leverage Structured Capital for Multifamily Transactions
| Capital Structure | Preferred Equity, Mezzanine Debt |
| Description | Closed-end fund offering a high-levered participating preferred equity program for owners and developers of income-producing commercial real estate |
| Property Type | Multifamily, Student & Senior Housing |
| Investment Size | $5MM – $75MM |
| Leverage | Last dollar up to 95% LTV |
| Pricing | Low to mid-teens; pricing dependent on risk |
| Pay Structure | Ranges from 100% accrual preferred equity to 25% current-pay mezzanine debt |
| Term | Up to 7 years; open to prepayment at any time, subject to minimum equity return multiple |
| Use | Acquisition, Recapitalization, Development |
| Geography | US |
Joint Venture Equity for Heads-in-Beds Strategies in the Continental US
| Capital Structure | JV Equity |
| Description | Fully-integrated, internally-managed investment and asset management platform seeking to deploy capital into heads-in-beds strategies |
| Property Type | Multifamily, Student & Senior Housing |
| Check Size | $15MM – $75MM |
| Co-Invest | 90% / 10% |
| Target Return | 8% annual cash yield with targeted growth returns in upper mid-teens |
| Hold Period | 1 – 7 years |
| Use | Acquisition, Recapitalization, Development |
| Geography | US |
RECA CORNER
Eyzenberg & Company is a member of the Real Estate Capital Alliance (reca.us). Below are the aggregate fourth quarter production statistics for all RECA members.
