CORINTHIAN

REAL ESTATE CAPITAL FEB 2010 NEWSLETTER

100% FINANCING
ON BUILD TO SUITS DEBT MARKET EQUITY MARKET WHAT WE DO
Having recently worked on a VA outpatient The debt market continues to improve with more We are constantly in contact with mezzanine and
STRUCTURED FINANCE
financing, we are familiar with a fully funded life company money entering the market (albeit equity sources for value added projects. We are
takeout structure that is hard to beat. The funding very conservative leverage and for the best working with development partners who are JV A G R E E ME N T S
source wants to put out $500M-$850M in the first six borrowers). More Wall Street types offering building grocery anchored centers and searching for
EQUITY
months of 2010. leverage on their balance sheets for high quality credit tenant build-to-suits, including GSA leased
properties. The ever-present government agencies properties. DEBT
The lender is very sensitive to the creditworthiness are offering the best loans in the marketplace for
of the tenant. Very briefly, their firm will fund a multi-family product with good operating history. INVESTMENT SALES
BTS into escrow and typically fund ½ of the Our recent loan closings include multi-family and
development fee at closing. The second ½ of the retail; both of these assets were financed through
development fee is paid at rent commencement as local lending institutions.
well as the spread between the YOC and the agreed
upon cap rate. Their cap rates are very Below is a quick rundown of what we’re seeing in
competitive in the market today regardless of their the current commercial real estate debt market. OFFICE / INDUSTRIAL
Loan Amount: $1- $10 MIL
funding the non-recourse (standard carveouts) Construction money remains very conservative if Fixed Term (years): 5 6.25 – 7.25%
construction loan. The lender essentially brings all available at all. 7 6.25 – 7.50%
10 6.25 – 7.75%
of the capital to the transaction and provides a 15+ 6.75 – 7.85%
takeout at rent commencement. Amortization: Up to 25 years
Max LTV: 75%
CORINTHIAN RE CAPITAL
In our opinion, your risk as the developer is greatly 200 W. Forsyth Street, Ste 400
reduced with the in-place take out. Another very MULTIFAMILY RETAIL
Jacksonville, FL 32202
Loan Amount: $1- $50 MIL Loan Amount: $500K- $10 MIL
positive point to their program is the developer’s Fixed Term (years): 5 6.25 – 7.25% Fixed Term (years): 5 6.25 – 7.25%
ability to do more transactions as there are not 7 6.25 – 7.50% 7 6.55 – 7.50% (904) 854-7800
10 6.25 – 7.75% 10 6.75 – 7.75% phil@corinthianjax.com
contingent liabilities associated with the loan. 15+ 6.75 – 7.85% 15+ 7.00 – 8.00%
austin@corinthianjax.com
Amortization: Up to 25 years Amortization: Up to 25 years
Max LTV: 75% Max LTV: 60-70%
www.corinthianjax.com

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