New Capital Source Providing Debt & Equity for Special Situations

One of our long-time relationships has established a new capital platform focused on special situations. Given the distress in the market this group was formed with the intention of providing various types of rescue capital to help sponsors get projects through these challenging times.

They can provide different capital structures such as stretch senior loans, mezz/pref equity and even LP or Co-GP equity for the right deal. They can be flexible on terms to make sure that a project is set up for success.

Example scenario: Multifamily sponsor acquired a value-add property in 2021 using a floating rate bridge loan. Interest rates shot up and doubled debt service. Sponsor executed improvements as planned but the increased capital costs is constraining cashflow while rising cap rates have pushed LTV to a position that is difficult to refinance. This group could provide a pref equity piece that will pay down the senior note to a more comfortable position. The pref equity can fully accrue, providing cashflow relief. They could also provide a stretch senior to fully refinance the existing debt with a combination of current pay and accrued interest that also provides cashflow relief.

Other examples would be partner recapitalization, gap financing, construction completion/takeout, any other special situations.

They’ll look at all property types (even office).

Property Types: Hotel, Residential, Office, Retail, Healthcare, Other Niche Property Types.

Markets: Primarily Western US & Texas but will look at Hotels Nationwide

If you’re trying to figure out how to finance a special situation click the button below

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Nathan Whigham
President
CA DRE Broker License: 01793655

EN Capital Contact Info:
www.encapital.com
[email protected]
Direct Line: 310-465-92