Capital Advisory Group: Debt & Equity Financing

Lee & Associates Capital Advisory Group is built to provide a full array of financial services including debt financing, equity placement, structured finance, recapitalization strategies and CRE advisory services for our clients. Leveraging several decades of industry expertise, creative strategies, and a commitment to excellence.

In today’s ever-changing debt market, it is imperative for an intermediary to provide real-time, accurate information to investors and developers. The Capital Advisory Group provides current and comprehensive information on rates and execution.

Lee & Associates’ proprietary database includes local, regional, national and international banking institutions, life companies, private credit; bridge, construction and mezzanine lenders and direct access to the CMBS market and special situation lenders. We take a tailored and targeted approach with relationship capital sources, while creating appropriate competition.

With expertise in industrial, retail, office/medical office, multi-family, mixed-use, hospitality, self-storage, student housing, and specialty assets, we deliver optimal financing and capitalization structure regardless of product type.

We welcome the opportunity to assist clients in achieving their investment goals and objectives. More than advisors, we are strategic partners with aligned interests; fully dedicated to helping clients succeed in a competitive market.

CASE STUDIES

Creating a Joint Venture for Ground-Up Construction in Brooklyn, NY

LEADERSHIP

Northeast, Dave Carswell
Northeast, Gary Sopko
Southwest, Jason Dannat

To contact a debt & equity finance advisor, please click on one of the contacts listed above or visit the professionals tab. 

 

DEBT PLACEMENT SERVICES

  • Permanent Mortgage Financing
  • Bridge Financing
  • Construction Loans
  • CMBS Financing
  • Agency / HUD Financing
  • Credit Tenant Lease (CTL) Financing
  • Mezzanine Debt
  • Debt Recapitalization
  • Discounted Pay-Off (DPO)
  • Land Loans

Our underwriting procedure includes several important steps:

  1. Identify and understand clients’ goals, both short- and long-term
  2. Perform comprehensive financial modeling through reviewing and analyzing the asset’s past operating performance and near-term projected performance
  3. Create a lender-friendly, comprehensive loan submission, competitively bid to targeted lenders
  4. Provide expert negotiation with financing terms while selecting the best lender or investor to meet financing objectives
  5. Manage / provide guidance throughout the due diligence process and ensure smooth closing coordination of the loan transaction

EQUITY PLACEMENT SERVICES

The Capital Advisory Group’s transactional and advisory experience has resulted in relationships with leading equity capital providers both domestic and foreign. Our capital partners provide an array of equity investments including:

  • Preferred Equity
  • Entity Level Investments
  • Family Office
  • High Net Worth Investors
  • Institutional Joint Ventures
  • Foreign / Sovereign Wealth Funds

CAPITAL ADVISORY SERVICES

The group offers a comprehensive range of advisory services including:

  • Hold / Sell Analysis
  • Portfolio / Property Valuations
  • Development Project Proformas / Return Analysis
  • Financing Strategies
  • Acquisitions Underwriting
  • Purchase and Sale Due Diligence
  • Market Studies
  • Broker Opinion of Value (BOV)

FINANCING OPTIONS

PERMANENT MORTGAGES
Fixed rate amortizing debt arranged through commercial and savings banks, life companies and pension funds to finance stabilized assets of all product types, with typical maturities of five, seven and ten years.
CONSTRUCTION LOANS
Floating interest rates, typically tied to SOFR or Prime, with no amortization. Flexible term plus extensions consistent with specific development timeline of the project. Ground-up, substantial rehabilitation or adaptive reuse projects. Interest reserves built into the loan structure eliminating future equity requirements for the Borrower.
BRIDGE FINANCING
Typically floating over SOFR, interest only interim loans for acquisition or renovation of existing assets. Provisions for additional earnouts predicated on “Value Creation” are commonplace. Reserves are created to minimize or eliminate additional equity investment by the Borrower during the loan term. Ability to artificially fix interest rate via a rate cap. Private credit, bank and life company execution available.
COMMERCIAL MORTGAGE BACKED SECURITIES (CMBS)
Fixed rate, long-term mortgage alternative to traditional permanent mortgages. This type of financing is best utilized for high quality assets or portfolios with strong, sustainable cash flows. Ability to solve for a DSCR based on I/O payments. 5- or 10-yr terms available. Non-Recourse.
MEZZANINE & PREFERRED EQUITY
Financing for a Borrower looking to increase leverage to asset value and/or amplify returns to existing equity stakeholders. As this financing is subordinate to the first mortgage, an inter-creditor agreement is often required to secure the second position’s legal rights. Interest coupons are significantly higher and may reach the mid-teens depending on the specifics of the transaction. The term never exceeds that of the first mortgage maturity.
RECAPITALIZATION
This may be as simple as replacing a maturing mortgage loan or more complicated scenarios warranted by a significant change in the property profile necessitating a different loan structure to match the current needs.
DISCOUNTED PAY-OFF (DPO)
There are circumstances when a lender is willing to consider a loan pay-off for less than is owned. In these situations, it is preferable to have an advisor/intermediary experienced in such transactions to represent ownership in the negotiation of terms most advantageous to the ownership.
LAND LOANS
Often in anticipation of a future development project, land must be acquired by the developer prior to the commencement of the entitlement process. Attracting accretive debt requires an understanding of the business plan, including take-out (construction financing and an ability to communicate this to prospective lenders.