Eyzenberg & Company launches a new office in Washington D.C, the first in a series of strategic growth efforts to come in 2020. This
expansion marks the firm's first regional office, to join its counterpart headquartered in Midtown Manhattan.
GROUND GAME
Eyzenberg Ground Lease Capital creates and acquires 99-year, unsubordinated ground lease options in tandem with its institutional
partners.
| 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 lookback 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 |
CURRENT OFFERINGS
Select current deals in the market seeking capital
| Bridge Loan | $30M | Office Recapitalization | Albany, NY |
| Permanent Loan | $6.5MM | Retail Recapitalization | Lakewood Park, FL |
| Bridge Loan | $29.5MM | Multifamily Acquisition | Memphis, TN |
| Permanent Loan | $6MM | Retail Recapitalization | Gastonia, NC |
| JV Equity | $40MM | Land Acquisition | Tyson Corner, VA |
| Construction Loan | $22MM | Condo Development | Plainview, NY |
| Mezzanine Loan | $7MM | Condo Development | Plainview, NY |
RECENT CLOSINGS
Select completed transactions
$23MM Entertainment Retail Property | Acquisition | Myrtle Beach, SC
Placed a permanent loan for the acquisition of a stabilized oceanfront vertical
entertainment complex in Myrtle Beach, SC.
$36.5MM Multifamily Property | Construction | Huntsville, AL
Structured and placed a revolving first mortgage construction loan to complete the
development of the remaining 220 units in a 398-unit multi-family community located in
Huntsville, AL.
CAPITAL SPOTLIGHT
Program summary of active capital providers
Flexible Bridge Loans for Value-Add
Opportunities
| Capital Structure | Bridge Loan |
| Description | Midwest asset management firm seeking to fund acquisition and renovation transactions nationwide |
| Property Type | Student/Multifamily Housing, SelfStorage, Retail, Office, MHPs and Hospitality |
| Check Size | $10MM - $75MM |
| Leverage | Up to 85% LTC / 75% LTV |
| Rates | Spreads to LIBOR of 2.5% - 4.5% |
| Term | Up to 5 years |
| Amortization | Interest only |
| Future Funding | Holdbacks for renovations and "good news" |
| Uses | Acquisitions, Recapitalization, and Repositioning |
| Geography | Nationwide |
Fund Manager Writing Long-Term Loans
| Capital Structure | Permanent Loan |
| Description | Asset Management firm providing balance sheet execution for core+ permanent loans |
| Property Type | Student/Multifamily Housing, SelfStorage, Retail, Office, MHPs and Hospitality |
| Check Size | $10MM - $75MM |
| Leverage | Up to 85% LTC / 75% LTV |
| Rates |
Spreads to Treasuries of 150 bps+ |
| Term |
Up to 15 years |
| Amortization |
Interest only |
| Future Funding | Earn-outs for performance-based goals |
| Uses | Acquisitions & Refinance |
| Geography | Nationwide |
RECA CORNER
Eyzenberg & Company is a member of the Real Estate Capital Alliance (reca.us). Below are the aggregate third quarter production statistics for all RECA members.
