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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 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. 

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