National Short-Term Lender

If you need a reliable, quick-closing short-term bridge lender, NEBO Capital would like to introduce you to a national platform known for its flexibility.

The platform prides itself on fast responses and creative solutions and works diligently to meet its clients' investment objectives. 

This firm focuses on financing transactions in the $2MM - $15MM dollar range, and provides financing for recapitalizations or acquisitions of opportunistic and value add-add real estate.

Its lending focus is on Multifamily, Office, Industrial, Retail, as well as Non-Owner Occupied Single Family Homes. Rates start at 7.9%, with leverage up to 75% and terms up to 24 months. There is the ability to do both recourse and non-recourse, and keep pre-payment to a minimum.

Call NEBO today for an introduction to this lender.

Midwest: Ground Up and Reposition Equity

NEBO Capital has established a relationship with an equity investor group that is interested in ground up development and repositioning projects in the Midwest. This group is currently investing its second fund, which is managed by veterans that have been making equity deals for decades.

Their first fund developed or acquired $500M of commercial real estate in four years, and its portfolio is stabilized, allowing the investors to start their current fund and opening the door to new alliances. They consider retail, office, hotel, and multifamily investments. They will also look at quality assets in other classes.

The fund targets IRRs starting in the teens, and has a 2.0x multiple requirement. It invests at least $1MM per deal.

Call NEBO today for an introduction to this investor.

NEBO Arranges $10MM Hotel Loan: Construction to Perm for Challenging Location

In a difficult environment for hotel financing, NEBO recently arranged a $10MM, 75% LTC construction/perm loan for a soft-branded hotel in a tertiary market of Northern California. Although the project had favorable local demand drivers and an experienced management team, most institutional lenders were unable to provide an attractive loan.

Through its network of over 1,000 lenders and private investors, NEBO was able to source a structured solution with a competitive cost. NEBO has a roster of opportunity funds looking to acquire JV interests and finance opportunistic hotels throughout the U.S. If you need financing for acquisition, new construction, or to fund a PIP, we can assist.

Contact Ned DeLorme, a hospitality specialist on the NEBO team, for an introduction to this lender.

National Bridge Lender Will Stretch On Proceeds, Lower Debt Yield Parameters, Focused On Primary Commercial Asset Types

NEBO Capital is working with an aggressively priced high leverage bridge lender. This national group considers loans in the $10MM-$40MM range, on the four major CRE types, and will selectively finance hotels.
 
The lender is an established financial institution with a solid track record. Its prices start at 30-day L+350 for multi-family (50 BPS higher for other categories), and the terms are all I/O, up to 3 years.

This lender will stretch on proceeds both on a cost and value basis, as well as fund 100% of good news money.

Call NEBO today for an introduction to this lender.

New Capital Source: National Investor Provides Long Duration Equity Capital To Growth Oriented Real Estate Operating Companies and Developers ("Sponsors")

NEBO Capital has established a relationship with a new nationwide entity-level investor. It has an investment strategy whereby it invests capital onto the balance sheet of Sponsors, primarily for GP co-investment, as well as general working capital and pursuit costs. This capital allows Sponsors to retain the majority of economics created through the GP investment and promote once the investor's return is met.

The investor is an experienced real estate capital provider with a $5B track record. The investor's predecessor company used this type of balance sheet capital to grow its lending business. 

The strategy invests $25MM to $100MM in the Sponsor, with sizing based upon the Sponsor's equity in their existing real estate. The term is 6 years, with the ability to extend for up to 2 years. 

The Sponsor has 2 years to take down the capital to allow for a matching of capital with deal flow. During the first 4 years of the term, the Sponsor can recycle capital from sold properties to deploy into new deals. 

Ideal Sponsors will have well-defined business plans, strong track records of executing on them, great management teams with deal pipelines and existing LP relationships. 

Call NEBO today for an introduction to this investor.

New Lender: National Fixed Rate Balance Sheet Lender With Its Own Floating Rate Bridge Program

NEBO Capital has established a relationship with a new nationwide lender. It has a floating rate and a fixed rate product for most commercial assets. This lender is managed by seasoned real estate executives with a long track record.

The floating rate program lends $20MM to $100MM on both stabilized and transitional assets. Floating rate leverage up to 70% for most property types (75% for MF) is available at pricing beginning at LIBOR + 4.00%. Terms up to 5 years, with mezzanine available in some cases.

The fixed rate program lends $20MM to $100MM on most categories of stabilized assets, for 7, 10, or 15 years. The pricing is around Treasuries + 2.25%. Leverage is up to 70% LTV on most property types (75% for MF). 

These fixed rate loans rate lock in application and multi year open prepay periods are available.

Call NEBO today for a quick response on your deal.

High Demand Nationwide Construction Lender: Small and Medium Apartment Developers

With many banks reining in their construction lending, NEBO Capital is now pleased to be working with a nationwide bank lender that is very focused on providing construction loans from $2M-$15M for apartments, senior housing, and assisted living developments. The bank has stretched to fund $20M loan amounts on its own balance sheet, and will seek to partner with local community banks on even larger loans.

The bank’s program is at 4.5% fixed interest rate, plus 2 lender points in, and 3 lender points out that are waived if the lender can also place Agency or FHA permanent financing. The bank will lend up to 70-75% LTC, structured as a 3-5 year mini-perm loan.  Additional important criteria are that the borrower have development experience, personal liquidity equal to 5-10% of the loan, and be putting some meaningful sponsor cash into the project. This lender is also fine with nationwide secondary and tertiary market locations.

Let NEBO Capital help you to get your apartment development financed out of the ground before the end of the year!

Call Scott Saliterman of NEBO today for questions on this program.

Non-Bank, Ground Up SFR Construction Financing Options

NEBO recently closed two high end spec home construction loans with a private, non-bank construction lender. This national lender can do either individual, higher price point, spec homes or small lot subdivisions and apartments. Loan to cost is typically 70%. Recourse is generally desirable to the lender but often a completion guarantee is sufficient. They offer 2 to 3 weeks turnaround depending on circumstances of the loan request. This group’s capacity has grown significantly in over the last 5 or 6 years.

Many similar lending groups have expanded their capacity and scope. A significant number of new and very well capitalized players have entered the market. This conforms to our view that banks are increasingly shying away from commercial real estate finance and can be unpredictable, too structured and document heavy, and slow. We do often place business with banks but their bucket is very specific and frequently can’t meet client criteria.  We feel our clients should be aware of other options.

Call NEBO for help on your construction deal on your SFR development or other commercial/residential projects.

NEBO Arranges $6.2MM Acquisition Loan

NEBO Capital recently obtained acquisition and rehab finance for a vacant 43 unit multifamily building in Los Angeles. The building is a pioneering work of a well-known modernist architect. 

NEBO sourced a $6.2MM loan which funds 65% of acquisition cost and 75% of the improvement cost. Challenges included lack of parking and the vacancy of the building. An additional hurdle was that the developer projected a rent premium based on the architectural attractiveness of the building, which was a tough point to comp.

NEBO successfully closed the loan in approximately 2 weeks.

Call NEBO for answers on your deal today.

Attractive, Small Balance, Nationwide Construction Lender

With many banks ratcheting back their construction lending, NEBO Capital is now pleased to be working with a nationwide bank lender that is very focused on providing construction loans from $2M-$15M for apartments, senior housing, and assisted living developments.

The bank’s program is at 4.5% fixed interest rate, plus 2 lender points in, and 3 lender points out that are waived if the lender can also place Agency or FHA permanent financing. The bank will lend up to 70-75% LTC, structured as a 3-5 year mini-perm loan. Additional important criteria are that the borrower have development experience, personal liquidity equal to 5-10% of the loan, and be putting some meaningful sponsor cash into the project.  This lender is also fine with nationwide secondary and tertiary market locations.

Let NEBO Capital help you to get your apartment development financed out of the ground before the end of the year!

Call Scott Saliterman of NEBO today for questions on this program.

New CO-GP, JV, & Pref Equity Capital Group - Fast Reacting

NEBO has a relationship with a team of institutional joint venture specialists that recently parted ways from deploying equity capital for a Middle East Sovereign Wealth Fund – which is no longer able to put out new capital due to low oil prices.

The team has just completed raising their first $50M fund to deploy in JV equity investments. They will consider funding $2M-$15M of equity per deal for primary-to-tertiary markets in the southern half of the US. They have a preference for CO-GP situations, but will provide LP Equity and Preferred Equity as well. Their focus is on apartments, office, retail, mini-storage, and industrial. For LP equity, they are targeting 16-18% IRR returns for ground-up developments, and mid-teen IRR returns for value-add opportunities.

Their ideal partner candidate would be with an experienced local group or local industry professional who needs an institutional capital partner to help them to grow their platform.

They are flexible capital with a three person investment committee that can close equity deals in as quickly as 2-3 weeks. 

Call Scott Saliterman of NEBO today for questions on this program.

Competitive CMBS Lenders

Sometimes you have to beg!

If you are reluctant to entertain a quote on a 10-year fixed rate loan with a conduit, i.e. CMBS, for an acquisition or refinance you might be missing out.

We all know the ups and downs of the CMBS origination world, but at this exact time, i.e. NOW, they offer some of the best deals, and we have comfort that a selected CMBS lender will close the loan as applied for.

CMBS volume is off and due to a shake out in the industry there are fewer but better players; they are more careful on what they quote, and they are begging for business. At this time, we typically only look at  3 to 6 CMBS lenders for each deal we work on so that we get solid quotes from groups we know can execute.

Use our expertise to pick the right CMBS lender and close at the rate and terms you can brag to your grandkids about.

Call NEBO today for help on your deal.

Insurance Company Eagerly Seeks Ground-Up Opportunities for "One Stop Shop" Funding

NEBO Capital is working closely with a large US insurance company that is eagerly seeking to fund urban, ground-up multifamily developments and grocery-anchored retail developments in primary and secondary US markets.

The insurance company offers an attractive “one-stop-shop” funding program whereby they will provide up to 95% of the total project capital, structured as 60% non-recourse debt and the balance as JV equity.

This company is looking for strong urban multifamily locations with project cost in the $30M-$80M range.

Please reach to Scott Saliterman to discuss your project funding needs immediately.

Saving Your Time and Resources for CMBS Debt Placement

The first several months of 2016 saw a lot of pricing and execution uncertainty in the CMBS/Conduit space. Some lenders left or de-emphasized the space, while others developed difficult reputations and saw a decline in their deal flows.

At this time, however, there remains a significant group of lenders that can predictably execute a deal, even in secondary and tertiary locations, with aggressive rates and leverage rates. A lot of them either have direct control over the B note process, or a detailed knowledge of the securitization market. The field remains highly competitive, but requires rigorous comparative shopping and deal closing process. 

In this context, there is reason to hire a broker to both run the process and to bring the broker's experience in the market to your advantage. Each conduit lender has the ability to tailor the pricing based on the level of performance their firm's loans have shown in the market, their relationship with B tranche buyers, composition of their book of loans, and many other factors. 

In addition, the conduit lender has the ability to take less profit on any individual and/or shift profit expectation onto some loans while losing money on others. Furthermore, there are standout firms in certain niches, i.e. large loans, small loans, trophy properties, secondary markets, etc.

Last, but highly relevant, is the nature of the B piece and/or mezz capability of the lender, and whether they have a balance sheet for temporary or permanent holding of a mezz/B position. Most CMBS lenders appreciate a broker running the show, and you often benefit with tighter overall pricing and terms and better execution.

New Small-Balance Lender for Home Builders

This California-based, multi-billion dollar family office lender possesses deep expertise in the homebuilding area and lends up to 85% LTC / 75% LTV, non-recourse, at 9-10% interest rates, plus 2 pts for origination. The lender is currently funding both acquisition and A&D loans of up to $3M from their balance sheet and expects to increase their maximum loan size to $10M by the end of the year. They entertain vertical construction requests.

Because this lender is targeting homebuilding opportunities, they respond quickly and with greater flexibility than other, non-specialized capital providers. At present time, they are seeking loan opportunities in CA, AZ and NV only.

Please contact Scott Saliterman of NEBO Capital for quick assistance on this program.

Bridge and Stretch Bridge Lending Gets Better and Better: Opportunistic and Value-Add Situations

One of the true bright spots in real estate finance is bridge lending for value-add purchases and repositions. Rates are in the range of 400 over Libor (or less in some cases) on lower LTV/LTC and better fundamentals. Rates top out around 750 over Libor (in most cases) but largely cluster in the 450-550 over Libor range. Some bridge lenders have the willingness and capacity to price on a risk-adjusted basis along this pricing continuum and other lenders price in a narrow range and must find deals that work at that price/underwriting.
 
Of the many lenders we deal with, one lender has a standout bridge program which has grown a lot in the last 6 months. It prices well on a variety of asset classes including student housing, manufactured housing, and hotels (including select service). This lender likes a $10MM to $75MM loan size (they love portfolios) and have flexible or no pre-pays on 2 to 3 year terms. They also offer non-recourse permanent financing, mezzanine finance, and have a decent equity bucket.

Call NEBO today for answers on your deal.

Non-Recourse Reposition Stretch Loans

 Income Properties Only

Mid 4% Rates

This program provides well-priced and significant leverage: 2-5 year term financing, up to 80% LTV. It is ideal for Class A and Class B assets with a good story regarding reposition or lease up. Opportunistic purchases and re-caps also considered. The rates are floating with or without a swap/hedge.

Loans amounts $40M-$150M. West coast preferred. No pre-payment penalty after 18 to 24 months.

This non-bank lender has a proven track record of performance and certainty of closing.


Reach out to the NEBO team for questions on your deal.

Very Flexible and Well-Priced Programs: National Hard Money

NEBO has a long-term relationship with this private finance group which was recently heavily capitalized. Their mission is to get out substantial dollars in the $2MM to $50MM size range with their various programs (see below). They price on a risk adjusted basis and can be in the mid to high single digits on lower leverage, lower risk deals (6.5% is about as low as they would go) to low double digits for subordinate financing and higher risk deals. They will most definitely look at transactions in secondary and tertiary markets.

Commercial Bridge Loans: Cash Flowing and Non-Cash-Flowing (Non-Recourse)

  • Almost Every Asset Class Including Mobile Home Communities, Hospitality, Healthcare

  • Almost Every Situation Including Cash-Out, Foreign National, DIP, etc.

Land Loans (100% Entitled)

Construction Loans and Construction Mezzanine (Recourse & Non-Recourse)

  • Residential For-Sale and Most Commercial Asset Classes

  • There are no Prepayment Penalties

  • Leverage is 65% LTV on Land and up to 85% LTV on Mezzanine

Please call us to find out more about these programs as well as any other debt or equity situation you might have.

Stretch Senior Loans for Secondary Markets

Traditionally it has been harder to find a reasonably priced, mid-single digit, value-add stretch (on the loan to cost) bridge loan for secondary or smaller markets. We have always had a number of lenders looking for this type of business but recently this lender space has expanded and we have several new players covering this niche. These loans start at $5,000,000 and up as to the size that they want to do.

Please call us to find out more about these programs as well as any other debt or equity situation you might have.

85% LTC Loans Now Available for SFR Community Development

NEBO Capital is pleased to be working with an institutional lender that funds construction loans for single family residential community development at up to 85% LTC / 70% LTV. The lender charges 12% interest plus 2 points and is focused on primary and secondary markets. Loan sizes range from $4M-$15M and recourse is limited to completion guaranty and bad-boy carve outs. The lender is looking to see lot off-take agreements from national builders, and will also fund $5M+ sized mezzanine A&D loans as well.

Please contact Scott Saliterman about this program, or any NEBO representative for an immediate loan consultation.