| Purpose: |
Pre-development, site acquisition, development of new
construction and repositioning of existing structures to
create for-sale and rental housing. |
| Property Types: |
- For-sale housing
- Rental housing
- Includes single-family homes as well as mid-rise developments
- New construction and rehabilitation
- Mixed-use with residential component as cornerstone
of project
- Community revitalizing commercial properties
|
| Project Size: |
$3 million to $100 million total development costs |
| Geographic Location: |
Greater San Diego area: City of San Diego and San Diego
County |
| Location Requirements: |
- Low- and moderate-income areas
- Entitled and unentitled properties
- Metropolitan and other dense urban and infill areas
|
| Development Stage Financing: |
All stages of development financing including:
- Pre-development
- Land acquisition
- Development financing
|
| Investment Structure: |
Mezzanine loans secured by subordinate liens and/or partnership
interests |
| Investment Size: |
Investments of $1 million to $20 million funded as mezzanine
and/or equity |
| Overall Pricing: |
Competitive risk-adjusted rates and fees. Yield achieved
through a combination of current pay, front-end fees, accrued
interest, and/or participation interests. |
| Preferred Return: |
8%-12% Range |
| Participation in Project Profits: |
TBD |
| Required Equity from Developer: |
0% to 15% of total equity requirements |
| Maximum Allowable Senior Debt: |
Up to 85% senior debt of total development costs |
| Investment Time Frame: |
Up to five years with a focus on 36 to 48 months |
| Developer Requirements: |
Experience in residential real estate as well as experience
in the local development area |
| Project Size: |
Minimum 30 units
Multiple sites will be aggregated for consideration as a single project |
| Origination Fee: |
2% to 3% financed as part of investment |
| Recourse: |
Recourse is dependent on investment-to-cost and developer
invested capital. Standard recourse carve-out for completion
guarantee and environmental indemnity. |
| Other: |
Inter-creditor agreement with senior lenders |
