The members of CapHarbor Realty Adviors, LLC ("CRA") have many years of experience in dealing with capital market activities. CRA’s team members have advised several major lenders in the creation of their first mortgage and bridge/mezzanine lending programs for properties owned in a Tenant in Common/Delaware Statutory Trust ("TIC / DST") structure. Our experience includes:
- First Mortgage Origination
CRA’s team members have arranged over one billion dollars of first mortgage financing with CMBS, bank and portfolio lenders and maintain relationships with the nation’s largest lenders and servicers. First mortgage financing is typically the least expensive capital and can account for as much as 75% of a property’s capital needs.
- Bridge and Mezzanine Financing
CRA has developed and maintains relationships with many of the nation’s largest bridge and mezzanine lenders for dealing with high-leverage and/or transitional properties. Bridge and mezzanine financing is typically priced between first mortgage financing and preferred equity and can bring a property’s leverage up to 90% of value.
- Preferred Equity
CRA has long-standing relationships and partnerships with a number of private equity firms that provide preferred equity for loan workouts, recapitalizations, stabilization and enhancement of properties specifically owned in a TIC / DST structure. Our relationships usually allow the existing owners to co-invest their pro-rata share of the new equity on an equal basis with the preferred equity provider if they wish. Typically, the property ownership is converted on a tax-deferred basis to a new multi-member LLC managed by the new preferred equity provider. Preferred equity is the most expensive form of financing but can be essential for rescue capital and in loan modifications and workouts.
- Property Dispositions
Members of the CRA team have been involved in billions of dollars of dispositions of commercial properties. CRA has the capabilities to work with third-party listing and sales agents to coordinate the sales process, or to directly handle all aspects of the sale as appropriate for a specific circumstance.