FEATURED TRANSACTIONS

$103MM Preferred Equity and Bridge Debt

Client Request

90% of cost financing of $103,000,000 for a 445,000 SF office portfolio located in Las Vegas, Nevada. 

Situation/Challenges

• Sponsor bundled two purchases with different risk profiles from different sellers into one portfolio at closing
• The combined portfolio was 41% vacant at closing, requiring significant structuring for lease up reserves
• The portfolio included buildings in two different sub-markets and included both fee simple ownership in five of the seven buildings and a condominium interest in two others

Solution

Dekel Capital identified an institutional debt fund that was capable of providing a non-recourse senior loan to 72% LTC with significant future funding for leasing reserves at competitive pricing, and an institutional REIT who provided preferred equity up to 90% of cost which included a large accrual component which only gets paid down upon building sales, allowing Sponsor the flexibility necessary to execute on the business plan.