CAPITAL STRUCTURE: Construction Loan
Check Size: $25M – $75M
LTC : Up to 85% LTC
Rate: SOFR + 700–1,000 bps (≈ mid-7s to 10% all-in)
Term: 2-4 years
Property Type: Multifamily, industrial, senior living, selective retail/office, hospitality
Use: Ground-up development
Geography: Nationwide (U.S.)
CONSTRUCTION LOAN
Discretionary insurance backed balance-sheet lender seeking to provide development-stage financing
Balance sheet lender writing non-recourse construction loans nationwide
CAPITAL STRUCTURE: Construction Loan
Property Type: All asset types including Multifamily, condominium, student housing, manufactured housing, industrial, and retail,
Medical office: No land or horizontal dev.
Use: Ground-up Construction
Check Size: $20MM – $50MM
Term: 6 – 24 months (maximum 36 months with extensions)
LTC : Up to 75% LTC
Rate: SOFR + 600 bps
Geography: Nationwide (U.S.)
Insurance company writing participating senior construction loans for select asset classes.
CAPITAL STRUCTURE:Construction Loan
Property Type: Multifamily & Industrial
Use: Ground-up construction
Check Size: $20M-$150M
LTC : Up to 85% LTC
Rate: Current pay of 5.5% and a targeted IRR of 8.5% via equity participation
Term: up to 10 years
Recourse: Non-recourse
Geography: Nationwide (U.S.)
Specialty Asset Bridge, Construction And Mezzanine Debt
CAPITAL STRUCTURE: BRIDGE LOAN/ CONSTRUCTION LOAN, MEZZANINE DEBT
Newly formed finance arm of private equity vehicle seeking to deploy capital for senior housing, medical offices, student/multifamily housing, self-storage.
Check size: $10 – $500MM
LTV: Up to 85% LTV/LTC
Rates: Spreads to LIBOR of 2.5% – 5.5% (first mortgage) or 6.0% – 10.0% (mezzanine/preferred equity)
Term: Up to 7 years
Amortization: Typically interest only
Property type: Senior Housing, Medical Office, Student/Multifamily Housing, Self-Storage
Uses: Development, Acquisitions, Recapitalization
Geography: NationwideHigh leverage flexible long-term balance sheet financing
Partial/Non-Recourse Bridge And Construction Loans
CAPITAL STRUCTURE: BRIDGE LOAN/ CONSTRUCTION LOAN
An aggressive East Coast Bank has dropped pricing for construction and bridge loans across various asset classes.
Check size: $20-$150MM
LTV: Up to 70% for Multifamily and 65% for all others
Rate: Spreads ranging from high 1s to low 2s on transitional assets and high 2s to mid 2s for construction transactions Recourse: non-recourse for bridge loans and 20-25% recourse for construction loans with burn offs
Term: 3 to 7 years
Amortization: 30 years for multifamily and 25 years for all other asset classes
Interest Only: Up to four years
DSCR sizing: 1.15x
Structured Capital Friendly: Allow mezzanine debt up to 80% and preferred equity up to 90%
Asset Types: Multi-family, condo, office, retail, hotel, mixed use, industrial, self-storage, parking, some land
Geography: East of the Mississippi, Boston to Key Largo
Non-Recourse Land, Bridge, And Construction Loans For A Variety Of Property Types
CAPITAL STRUCTURE: LAND LOAN/BRIDGE LOAN/CONSTRUCTION LOAN
Balance sheet lender offering quick close, full discretion and non-recourse debt financing
Check Size: $8MM-40MM
LTV: Up to 75% stabilized value
LTC: No loan to cost restriction
Pricing: Minimum 5%
Coupon Fees: 1% to 2% origination fee
Term: 1 to 3 years with extension options
Recourse: Non-recourse
Property Types: Multifamily, retail, office, mixed-use, industrial, healthcare/life science, self-storage, for-sale condos, SFR communities, land and horizontal development.
Use: Acquisition, recapitalization, and construction
Geography: CA, OR, WA, AZ, NV, UT, CO, TX
Bridge And Construction Loans For Commercial And Multifamily Assets
CAPITAL STRUCTURE: BRIDGE LOAN/ CONSTRUCTION LOAN
Private debt fund offering high leverage senior debt nationwide
Check Size: $5-200MM
LTC/LTV: Up to 75%
Amortization: Interest only
Rate: High single digits
Fees: 1.00%
Term: Up to 60 months
Prepayment Penalty: None
Recourse: Recourse and non-recourse available
Property Types: Multifamily, Industrial, Office, Retail, Residential and Mixed-Use
Geography: Nationwide
Construction-To-Permanent Loan Program
CAPITAL STRUCTURE: CONSTRUCTION LOAN / PERMANENT LOAN
An insurance company is funding large senior construction loans at a fixed rate (locked at application) that convert into the fixed-rate permanent loan.
Check size: $50MM+
LTV: Max 70%; typically 65% or less
Rate: Market spreads over treasuries
Term: 36 months of construction term followed by 7+ year permanent loan for total of 10-25 years
Property type: Multifamily, (high & mid-rise, wrap and podium construction, no suburban garden-style product)
Uses: Development
Geography: Top 10 metro areas in the U.S. (urban, in-fill loc
Non-Recourse, Participating Construction Or Permanent Loan Structure
CAPITAL STRUCTURE: CONSTRUCTION LOAN / PERMANENT LOAN / PARTICIPATING LOAN
An international fund manager is deploying rare participating debt investments out of its multi-billion open-ended fund.
Check size: $20-$200MM
LTV: 90%
Rate: Current pay rate of 5-6% with 50% operating cash flow participation post debt service
Waterfall: Upon a capital event:
Repayment of mortgage
Preferred return of 7-9% to lender
Return of borrower’s equity
Preferred return of 7-9% to borrower
50/50 share thereafter
Term: Closed to pay off after 5-7 years
Property type: Multifamily, Industrial, Office, Retail, Student Housing, Hospitality, Self Storage
Uses: Acquisitions
