High Leverage – Structured Finance

Commercial Real Estate Investment opportunities are abundant but until now financing the purchase of commercial real estate investment property has been difficult because of the restricted flow of capital in the market place.  Dividend America Commercial Lending has solved this problem by gaining access to loan facilities in excess of $400mm specifically targeted towards funding the acquisition of cash flowing commercial real estate investment property.

Through Dividend America’s expansive lending platform, experienced Commercial Real Estate Investors have the ability to obtain up to High Leverage Financing Facilities (loans with very high LTV ratios) on the purchase and refinance of distressed and undervalued commercial real estate investment property.  High Leverage – Structured Finance facilities for the financing of Commercial Real Estate Investment properties has the following requirements:

  • Borrower’s must have industry experience in the category of property they purchase.
  • Properties must cash flow at a 1.25 or greater DSCR after applying our interest rate and terms. (Typical rates and preferred returns of 12% with IRR of 25 or higher)
  • Borrower’s must have reserves equal to 10-20% of the purchase price and must have 15% of the required GP equity investment.
  • Borrower’s must have ability to pay for third party fees and be able to place a 1% commitment fee at issuance of conditional approval by the underwriter.  Note:  Commitment fee can be built into loan amount as part of overall points and returned in escrow at closing.

This product can be structured as a hybrid JV or preferred equity investment along with a bridge loan facility typically referred to as Structured Finance.  The loan portion (points and rate) guarantees the investor a specified return and their is an ownership component as well.  As a loan this product may seem expensive, however, once the commercial real estate investor compares the cost of this capital to traditional JV, Preferred Equity and/or Venture Capital they will see that this is a very inexpensive source of capital.  NOTE:  High Leverage – Structured Finance loan facilities and high leveraged financing as high as 98% LTVs relates to the loan to value.  Sponsors still are required to have some portion of the equity investment, typically 15-20% of the required equity investment.  The LTC (loan to cost) calculation can be as high as 95% in strong transactions.  Please contact us for exact calculations about your specific situation.

Property Types Include:

Apartment/Multifamily  ♦  Retail/Shopping Center  ♦  Office  ♦  Office Warehouse/Light Industrial  ♦  Mixed Use

For more information on this opportunity and for quick qualification fill out our online easy app or contact the president of Dividend America | Commercial Lending, Michael Gross, direct at 404-819-4511.

Loans available in all 50 states of the USA - Equity, Bridge Loans, Joint Ventures, JV with preferred markets in the Standard & Poor’s Case Shiller Index – Boston, Chicago, Denver, Las Vegas, Los Angeles, Miami, Fort Lauderdale, Orlando, San Diego, New York, San Francisco, Phoenix, Atlanta, Tampa Bay, Detroit, Minneapolis-Saint Paul, Charlotte, Dallas / Fort Worth, Portland, Seattle, Cleveland, Oklahoma City, Jacksonville, Indianapolis, Nashville, Kansas City, Louisville, Milwaukee, New Orleans, Philadelphia, Raleigh, Sacramento, Salt Lake City, San Antonio, San Jose, Saint Louis, Tucson, Austin, Baltimore.