How the JV Program Works
We can provide both debt and equity for a joint venture project if developer has 5% of project cost to contribute, occasionally less than that if project is very strong.
Since our minimum amount for equity is $3M, total project cost must be at least $10M or so.
All of the most common property types are fine:
Apartments, assisted/senior living, hotels, retail and offices.
Typical capital stack:
Developer contribution 5% of cost (or less)
JV partner 25%
Construction loan 70%
Total 100% of project cost
Out of Pocket Costs:
$3,000-8,000 ($10,000 – $12,000 for international) fee payable after the LOI with terms is issued which covers underwriting and site visit.
Timing depends on how close developer is to being ready, 90 days or so is typical.
1. Is this non-recourse? NO
2. Does it include international projects? NO
3. Does this include non-construction projects?
YES IF THERE IS ENOUGH UPSIDE FOR IT TO MAKE SENSE TO THE EQUITY INVESTOR
4. What are the length of the financing and typical rates?
3-5 YRS TYPICAL BUT CAN VARY. EQUITY PRICING IS CASE BY CASE BUT DEBT USUALLY RUNS 5-6%