This program provides 100% equity financing for large-scale development projects that require a joint venture partner.
Covers all project costs including: land acquisition, development, and construction and equipment costs. There is no interest charged during the term of the investment. Instead, the fund takes a minority equity position within the proposed project as compensation for the investment, with the buyout options determined during formal underwriting.
Joint Venture Investment Criteria: financing for all types of commercial real estate and alternative energy projects. In general, they must meet the following;
• The project is NEW DEVELOPMENT ONLY, and requires an investment of $10 million or more; • The project must be shovel-ready--defined as ready to break ground in 90 days or less; • The project must be sponsored by an experienced developer with a significant financial stake.
Joint Venture Project Types: (NEW DEVELOPMENT ONLY)
Locations: USA and International, excluding: China, India, Africa, Russia and the Middle East • Hotel Resorts and Casinos • Assisted Living/Senior Housing • Apartment Buildings/Multifamily Housing • Alternative/Renewable Energy (i.e., solar, wind, hydro, geothermal, etc.) • Green Energy (i.e., biofuel/biodiesel, biomass, waste-to-energy, etc.) • Hospitals and • Infrastructure (roads, highways, rail, etc.) • Buildings • Multi-Family • Public-Use and Recreational Facilities • Industrial Projects • Other Related Types
Joint Venture Terms:
• 100% equity financing • Typically three to five year term • Non-recourse financing • No interest payments during term of investment • Minority equity stake in lieu of interest • Take out with permanent financing or sale
Time to Closing: 90 to 120 days
Joint Venture Equity Participation: During formal underwriting, the fund will determine its equity participation in the project--typically 15%-25%. As such, they will take a minority interest in the project until completion/stabilization when they will look to exit the transaction via , sale of the project, etc.
Joint Venture Equity Financing Advantages:
• The developer pays no interest during the entire construction period--potentially saving millions of dollars in interest expense; • Because the fund participates as a 100% joint venture equity partner, they assume nearly 100% of the project risk until completion or stabilization; • Rather than the typical equity of 20% - 40% or more that is required in a traditional financing structure, the developer will only be responsible for a refundable due diligence deposit. This allows the developer to reduce their up-front capital requirements while retaining a larger percentage of the project.
Joint Venture Refundable Due Diligence Deposit
As a condition of financing, the investment fund will require a fully refundable due diligence deposit that will be used to cover their underwriting expenses. However, if the project fails to close for whatever reason, the deposit will be returned in its entirety.
We'd love to hear from you! Give us a call or contact us! Email: email@example.com