mezzanine equity deals development & investment...
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MEZZANINE EQUITY DEALS
DEVELOPMENT & INVESTMENT PROPERTIES
BOUTIQUE MORTGAGE LENDERS ®
MEZZANINE DEAL STRUCTURE OVERVIEW:Capital Partner: Firm Capital Realty Fund LP. (“FC”)
• Mezzanine capital to facilitate the gapbetween conventional bank financing anddeveloper equity;
• Mezzanine capital allows developer toparticipate in more projects and to commenceprojects earlier;
• FC requires returns in the 12-14% range if presales and pre leasing are in place;
• If development risk and market risk exist,required returns are greater than 14%;
• FC requires a base return of 7.5% and canaccrue the differential;
• FC loan to cost ratio will be up to 90-95% ofcosts;
• FC to be paid a commitment fee equal to 2 to3%of the investment;
• Investment time line can be up to 5 years.
WHERE MORTGAGE DEALS GET DONE®
Ontario Mortgage Brokerage, Lenders and Administrators Act License #10164, Administrators License #11442
• Completed $1 BILLION of debt transactions in 2017
• Private equity real estate firm, managing assets of $2 BILLION in mortgage debt investments, real
estate and capital markets
CONTACT OUR BUSINESS DEVELOPMENT TEAM TODAY:
Michael Carragher 416.635.0221 ext. 245 [email protected]
www.FirmCapital.com