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Ground Lease
Alternative Financing Option For Your CRE
Banks Are Closed But This Alternative Form Of Financing Is Looking For Deals!
The market was super frothy literally 2 months ago...but a lot of things happened in those two months.If you had a deal lined up, or a note coming due or were even in the middle of construction and need to find another source of capital then we have an option for you to explore.Since banks aren't lending we've been working with a company that is bullishly looking to deploy funds through ground lease sale leasebacks.Their program is pretty straight forward; they get an appraisal of the subject property and will buy the dirt for 30% of the total property value secured by a 99-year ground lease.This structure has been a common practice in places like New York City for a long time and is a well known and vetted model.This capital source has informed us that they'll look at all property types and all assets including partially completed projects. For example, now a boutique hotel that lost their bookings due to the travel freeze across the nation, or a partially built retail center can get the capital they need to keep going while everyone weathers out this storm.Basically, if you're short on cash and need to some runaway to ride this out this could be a great option.Their criteria:
Deal Size:
$3M - $30M Ground Acquisition ($9 - $100M Total Property Value)
Ground Lease Acquisition Price
30% of the appraised value
Property types:
Apartments
Industrial
Hotels
Retail
Office
Partially completed construction projects
Rate:
5-6% cap rate against the purchase
Term: 99-year ground lease
Option for Early Buyout During Lease Term
If you are in an industry or have an asset type, that has been affected by the coronavirus this financing type can help. Send us an email and let’s start chatting today!
P.S. If you're brand new to the EN Capital newsletter; each week we promote a new capital source for a variety of commercial real estate properties. So if the above lender is not relative to you, the chances are high that we'll have the perfect capital source for you soon.P.P.S EN Capital is a commercial real estate mortgage brokerage shop. We are not direct lenders.P.P.P.S. If you have a commercial real estate deal, unrelated to the above, that needs capital right now reach out to us and let's chat!
Be sure to connect with EN Capital on Linkedin. and visit our website here.
Connect with EN Capital President, Nate Whigham on Linkedin Here
Connect with EN Capital Associate, Justin Ashcraft on Linkedin Here
Nathan WhighamPresidentCA DRE Broker License: 01793655EN Capital Contact Info:www.encapital.com[email protected]Justin Direct Line: 323-521-4766