REAL ESTATE INVESTMENT STRATEGIES
Structured Debt/Equity Financing Overview
Lument Real Estate Investment Strategies Group is a proprietary investment arm of Lument Real Estate Capital Holding, LLC. This group offers competitive, subordinate structured debt and equity for strong Sponsors seeking additional capital in addition to first mortgage financing.
ADVANTAGES
-
Provides “gap” capital with prepayment flexibility for acquisitions, refinances, or transitional needs.
-
Lower minimum current pays allow for stronger combined debt service coverage and more favorable last dollar combined LTVs.
-
INVESTMENT AMOUNT
$2 million and up
-
TERM
Coterminous with underlying first mortgage
-
PREFERRED RETURN
~ 13% – 15% with flexible pay and accrue structures
-
CURRENT PAY
Negotiable, generally a minimum of 7%;
Soft and hard pay structures available depending on senior lender -
TARGET LTV
80% – 85%
-
MINIMUM DSCR
1.05x based on amortizing senior mortgage + current pay
-
AMORTIZATION
Interest only
-
PREPAYMENT
Open subject to minimum interest
-
FEES
Negotiable
-
RECOURSE
Non-recourse subject to market standard carve-outs
-
GEOGRAPHY
Primary and Secondary U.S. MSAs
For more information, please contact:
IAN HAWK
Managing Director, Real Estate Investment Strategies
212.521.6303
ian.hawk@Lument.com
The above indicative terms do not constitute an offer, agreement, assurance, guarantee or commitment of credit and are subject to change in any and all respects. None of Lument Structured Finance, LLC or any of its affiliates or any of their respective employees, agents or representatives have provided, and reader has not relied on, any assurance, guarantee or commitment as to the availability of the loan or any other extension of credit.
