I wanted to know how you guys would structure the following deal:
Class B Multifamily
Needs capital
Occupancy was 85% 5 years ago
Current Occupancy is 60% in a market like Phoenix (lots of supply, lots of land, but also decent amount of demand)
Drop of occupancy primarily due to new construction or re-positioning in the area
Needs capex to make property more attractive to renters and
Barely breaks event after current debt service
I was thinking about structuring a compounding preferred at a minimum of 12%. Also, wanted to know when people would structure a subordinate piece of debt in a non construction related deal.
Curious to hear people's thoughts.
Thanks
Need to be way more specific...prop value, required $ injection/timeframe, current LTV, etc.
Property value: $100mm Current LTV: 65% Capital injection: $32mm Investment Timeframe: ideally 36 months, max 60 months
Personally, I don't deal with mezz pieces, but I can give you the going rates. Pref. equity is a different matter. I'm not too sure, but I'm confident that plenty of people on this board do them. Hopefully someone will chime in.
Mezzanine Moderate Leverage - LTV: 65 - 80% / DSCR: 1.05 - 1.15 / L + 600 - 800 Mezzanine High Leverage 75 - 90% - L + 800 - 1400
Autem iure aperiam at placeat. Incidunt doloremque hic at laborum eum.
Quos ut laborum aperiam modi quia eos sed. Voluptatum iste veritatis reiciendis molestiae ea. Quo ex alias qui.
Rerum accusantium a et repellendus sapiente sunt. Cupiditate quis quo tempore odit. Mollitia quis rerum laborum ea. In fugit vel quis et enim sint. Ratione ad possimus consectetur voluptas repudiandae. Consequuntur impedit nam fugit sunt eum beatae aut. Id ut quaerat dolor possimus voluptatem quia facilis suscipit.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...