4-10-15

Real Estate Journal — April 10 - 23, 2015 — 9A

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M id A tlantic

F inancial D igest Regional Capital Group Alternative Project Funding with EB-5 and Build to Suit Capital

uild to Suit Today’s lending en- vironment requires a higher level o f c ap i t a l investment from inves- t o r s a n d developers l ook ing t o develop, ac- qui re , sel l and/or joint venture projects across a B Paul Braungart G.S. Wilcox & Co. arranges $60.625m with Thrivent Financial Morristown, NJ — G.S. Wilcox & Co. arranged financ- ing in the amount of $60.625 million, arranged by Gretchen Wilcox , president, and Al Raymond , principal of G.S. Wilcox & Co. Five loans have been made with Thrivent Financial for Lutherans. One loan for $9.95 million was secured by a 230,000 s/f warehouse building located at Exit 8A. The property has a single tenant on a short-term lease; the lender allowed a mas- ter lease until a replacement tenant is found. The loan was fixed for 15 years, and had a 25 year amortization. Four additional loans include two South Brunswick, NJ prop- erties totaling 916,012 s/f of industrial warehouse space for $29.925 million, a third loan for $11.375 million for a 169,627 s/f industrial warehouse build- ing located in Moonachie and a fourth loan for $9.375 million for warehouse space located in Lyndhurst. n Elkton, MD — David Turley and Janet Proscia of CronheimMortgage secured a $16.16 million securitized loan for the mixed-use prop- erty located on East Pulaski Hwy. in Elkton. The fund- ing retired existing debt and enabled the owner to recover substantial trapped equity. The 70% LTV, 85% loan-to- cost financing was locked for a 10-year loan term on a 30-year amortization schedule. The Project includes a 78,800 s/f medical office build- ing converted from a former Wal-Mart. n CronheimMortgage secures $16.16m for office & retail prop.

has the ability to provide up to 100% of the capital for these properties allowing clients to preserve capital for future projects. There is a wide range of asset classes eligible for this funding op- tion including Corporate offices; data centers; call centers; warehouse/distribu- tion facilities; governmental or state-run facilities; truck terminals; manufacturing; all retail including big box; drug stores; restaurants; auto service centers/dealerships; national furniture stores; convenience stores; medical

office and acute care; univer- sity buildings including hous- ing; prisons or correctional facilities; bank sites includ- ing branches and operation centers. EB-5 EB-5 is an alternative fi- nancing option for qualified, job-creating projects focused on construction and invest- ments in commercial real es- tate, healthcare, hospitality, recreation, and manufactur- ing sectors. EB-5 provides a very flexible and low cost of capital for real estate projects that create construction jobs.

It is a source of funding not provided by typical capital sources and can be structured to supplement traditional institutional debt. EB-5 can be in the form of senior debt, subordinate debt, mezzanine, or preferred equity to com- plete the capital stack. Paul Braungart the president of Regional Capital states “having managed multiple opportunity funds and raised capital all of the world, EB-5 is the lowest cost and most flexible form of capital I have come across in my 30 + years of experience”. n

broad spectrum of real es- tate asset classes. RCG of- fers a principal built-to-suit platform, which is typically geared towards construction of a building for a single ten- ant asset or a property where one tenant is at least 50% of the building. This structure provides another avenue for developers, tenants, and investors of real estate as- sets obtain full funding for a project which will conserve capital for future projects. RCG also structures a sale- leaseback program designed for these types of assets. RCG

FANNIE MAE LOAN $27,075,000 Acquisition of 196-unit garden apartments Yardley, PA

FREDDIE MAC LOAN $10,137,000 Acquisition of 120-unit garden apartments Dover, DE

FHA 221(D)(4) LOAN $23,025,300 Newconstruction financing 160-unit garden apartments Frederick, MD

CONDUIT LOAN $20,000,000 Acquisition of 182,583 sf retail center Phillipsburg, NJ

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