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Creative Capital for Special Situations
Every day we see more deals facing a challenge that requires a creative solution.
We have a relationship with an investment platform that 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. In short, this is creative capital for situations that need a creative solution.
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
Stretch Senior | Sub-Debt | Equity | |
---|---|---|---|
Structure: | 1st Mortage / DOT | Mezz Debt & Preferred Equity | Co-GP & LP Equity |
Size: | $40M - $250M | $15M - $100M | $15M+ |
Max LTC: | 80% | 80% | |
Term: | 1 - 5 Years | 1 - 5 Years | |
Rate: | 9.0%+ | 12.0%+ |
If you’re trying to figure out how to finance a special situation click the button below:
Message from our Sponsor:
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We’ve been building this email list this since 2017 and we’re up to 28,000+ professionals focused on the capital markets for alternative investments such as commercial real estate, the space industry, renewable energy, LATAM deals and utilizing Data-as-an-Asset. So you’re in good company.
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EN Capital is NOT a broker dealer and does not sell securities
EN Capital is capital advisory firm / intermediary and NOT a direct capital source. Seriously, every time we sent out an email someone replies and gets pissy when they realize we’re intermediaries and not direct lenders. It’s clear on our website, LinkedIn and emails. We don’t know how to make it more obvious. Don’t be that guy.
Be sure to connect with EN Capital on Linkedin. and visit our website here.
Nathan Whigham
President
CA DRE Broker License: 01793655
EN Capital Contact Info:
www.encapital.com
[email protected]
Direct Line: 310-465-92