REAL ESTATE DEBT AND EQUITY OVERVIEW:
First American Capital Partners, LLC and its investors with more than $20 billion in discretionary assets currently under management focuses on providing debt and equity capital to real estate owners, operators, developers and corporations enabling them to participate in transactions which might have otherwise eluded them due to capital constraints. As a capital partner, we add value to every step of the investment process. With individuals from diverse disciplines including architecture, finance, asset management, law, accounting, development and government, the team is equipped to create optimally tailored solutions and to identify opportunities and strategies appropriate for current market conditions.
DEBT AND EQUITY PROGRAMS
Current funds include: the Value Mortgage Fund which specializes in providing short-term bridge and mezzanine mortgage capital to established real estate owner/operators and corporations, the Urban Funds, focusing on inner-city and urban real estate development, and (iii) the Value Opportunity Fund which is positioned to take advantage of market conditions that create opportunistic and distressed real estate opportunities.
DEBT PROGRAMS
The Value Mortgage Fund specializes in (i) providing short-term bridge and mezzanine mortgage capital to real estate owners/operators, (ii) providing short-term bridge and mezzanine capital to investment and non-investment grade corporations, (iii) financing land, and (iv) investing in real estate mortgages, mortgage related instruments, and corporate finance related real estate securities. Fund focuses outside the realm of traditional lenders, allowing real estate owners, operators and developers to meet their needs for time-sensitive and complicated transactions where reliable and skilled execution provides a substantial financial advantage.
| Bridge & Mezzanine Loans | Note Purchases | ||
| Loan Size | $1 to $100 million | $1 to $50 million | |
| Maturity | Up to 5 years | N/A | |
| Amortization | Typically not required | N/A | |
| Security Bridge: | 1st Mortgage lien | N/A | |
| Mezzanine: | 100 % Pledge of ownership, 2nd lien | N/A | |
| LTC | Up to 85% | N/A | |
| Interest Rate Bridge: | As low as 10% | N/A | |
| Mezzanine: | As low as 14% | N/A | |
| Upfront Fees | Between 3% and 5% | N/A | |
| Lockout | Negotiable, typically 12 months | Non-performing or defaulted | |
| Equity Participation | None | N/A | |
| Status | N/A | N/A | |
| Seller | N/A | Bank, Special Servicer, Insurance Co. | |
| Closing | As fast as 2 weeks | As fast as 2 weeks | |
| Property Types | All (including land) | Flexible | |
| Uses | Acquisitions | Rating Agency Requirement | |
| Pre-Development | REMIC Regulations | ||
| Construction | Asset/Liability Management | ||
| Recapitalizations | |||
| Refinancing | |||
| Refinance Asset-Based Lenders | |||
| DIP Financing |
EQUITY PROGRAMS
The Urban Funds are the country’s largest private real estate funds focused on the development of urban properties in underserved neighborhoods. The Funds were formed to identify, enhance and capture value through the development and redevelopment or real estate in densely populated, ethnically diverse urban communities. The Funds’ objectives are to seek current income and capital appreciation and, in addition to meeting its investment goals, the Funds are committed to providing for and fostering economic opportunities for the residents of the urban neighborhoods in which the Funds invest. With nearly $1.6 billion in committed equity capital, the Funds are positioned to facilitate over $4.0 billion in development and revitalization in major U.S. metropolitan areas.
The Value Opportunity Fund objectives are to seek current income and capital appreciation by attempting to identify, enhance, and capture unrecognized value through the acquisition, development, redevelopment, recapitalization and repositioning of real estate and the acquisition of non-performing loans and mortgages directly or indirectly secured by real estate.
| Urban Fund - Joint Ventures | Value Opportunity Fund | ||
| Deal Size | Projects requiring a minimum of $10 million of Funds Equity | Projects requiring a minimum of$10 million of Funds Equity | |
|
Partner Co-Invest |
Minimum 15% of project's equity
requirement (Fund 85%/JV Partner 15%) |
Minimum 15% of project's equity
requirement (Fund 85%/JV Partner 15%) |
|
|
Maximum Bank Leverage |
75% | 75-80% | |
| Property Types | Retail, Residential, Mixed Use, Industrial, Hospitality, Office |
Retail, Residential, Mixed Use, Industrial, Hospitality, Office |
|
| Uses | Acquisition | Purchase REO and Defaulted Mortgages | |
| Construction | Provide Equity Capital to Recapitalize Real Estate Partnerships | ||
| Purchase Real Estate and Defaulted Securities | |||
Since 1990, affiliates have invested over $3.5 billion in transactions involving more than 223 real estate and mortgage assets, including the origination of senior, mezzanine and bridge loans, note acquisitions, recapitalization of partnerships, and the acquisition and development of over 12 million square feet of real estate. These investments encompass a diverse mix of property types including retail, multi-family, industrial, land, office, hospitality, mobile home, entertainment, mixed use and mortgage loans secured by such property types.
