Commercial Real Estate Financing
We specialize in arranging equity and debt for most types of value-added commercial and residential real estate, including land, condominium conversions, subdivisions, office, retail, industrial, multifamily, hotels and special use.
As a global real estate company delivering products and services that lead to enhanced investment performance, we are well positioned to combine capital market expertise with extensive hands-on commercial real estate experience.
By providing access to both equity and debt markets, we are able to offer structuring alternatives, create the optimal capital structure, access appropriate capital and enhance the value of complex transactions. Selecting debt, equity and mezzanine capital can be the most critical and difficult component of any real estate transaction and requires seasoned professionals with track records of success.
Our expertise includes the following types of structured finance transactions involving construction, renovation or asset repositioning:
- Bridge loans
- Construction loans
- Credit facilities
- Joint venture equity
- Mezzanine debt
- Note sales and note financing
- Permanent loans
- Preferred equity
- Recapitalization / sale of partnership interest
- Term loans
To accomplish our clients’ structured finance objectives, we maintain close relationships with a comprehensive group of capital providers, including traditional lenders as well as emerging sources of capital covering the entire risk spectrum:
- Capital and credit companies
- Credit unions
- Domestic and global banks
- Hedge funds
- Insurance companies
- Investment banks
- Mezzanine funds
- Opportunity funds
- Pension funds
- Brymus Capital maintains relationships with over 900 private and institutional capital providers, suitable for a broad variety of transactions and relationships. Brymus Capital sources debt from local, regional, national and international individuals and institutions based on the structure of the loan request, region of the country and product type of the collateral. While the majority of our relationships are “institutional” and prefer larger transactions, we also maintain dialogs with smaller national and local capital to customize transactions for the best possible execution.
- Our value proposition extends deep into negotiations and loan structuring. In this arena, our services include modeling cash flow; both actual and proforma, while assisting our clients to determine the most advantageous cash flow structure for the evolution of their commercial investment. With billions placed over the +20 year history of our firm for cash flowing and future cash flowing assets, our staff has the expertise to deftly structure and negotiate every type of commercial asset; from operating marinas to the apartment complex in your neighborhood.
- Mezzanine debt (also called subordinate debt) is a structured financing product used to increase leverage. It is generally higher risk than senior debt, and therefore demands higher returns.
- Mezzanine debt can be secured by a second trust deed, and is therefore subordinate to the senior mortgage, but primes any equity. Mezzanine loans may also be secured by a pledge of partnership interest in the ownership entity. Unsecured mezzanine is treated as preferred equity.
- Mezzanine financing is limited by ratios based on the combined senior and subordinate debt. The most important of which include loan principal to property value (LTV), and annual net operating income to annual debt service (DSCR). Subordinate lenders accept some minimal risk to their principal balance, and may be willing to accrue some portion of their interest payments.
- The flavors and sources of mezzanine debt are myriad. Designing structured financing is an art form that takes many years of financing experience and access to a multitude of sources. Brymus Capital is adept at arranging financing to accommodate unusual needs and higher leverage structures. We have become known for this type of “financial engineering”.
- Brymus Capital maintains relationships with hundreds of equity investors, suitable for a broad variety of transactions and relationships. We typically source transactional equity for specific real estate projects, but also raise capital for discretionary funds.
- Most of our sources are “institutional”, and prefer large, passive investments. These investors limit their project involvement to asset management and oversight. However, we also maintain contact with small, opportunistic investors that will consider smaller deals and active participation. They usually have development and management expertise in addition to capital, and therefore seek to maximize their returns by deploying both capabilities. Only rarely will Brymus Capital “syndicate” equity for a project among a handful of high net worth investors.
- Our value proposition extends deep into negotiations and structuring. In this arena, our services include modeling of equity investments and determining investor IRRs based on various waterfall scenarios. With years of practice and billions placed, our staff has the expertise to deftly structure, negotiate, and surface potential risks. We endeavor to set up strong long term relationships that are successful for both sponsor and investor.