mezzanine equity deals development & investment...

MEZZANINE EQUITY DEALS

DEVELOPMENT & INVESTMENT PROPERTIES

BOUTIQUE MORTGAGE LENDERS ®

MEZZANINE DEAL STRUCTURE OVERVIEW:Capital Partner: Firm Capital Realty Fund LP. (“FC”)

• Mezzanine capital to facilitate the gapbetween conventional bank financing anddeveloper equity;

• Mezzanine capital allows developer toparticipate in more projects and to commenceprojects earlier;

• FC requires returns in the 12-14% range if presales and pre leasing are in place;

• If development risk and market risk exist,required returns are greater than 14%;

• FC requires a base return of 7.5% and canaccrue the differential;

• FC loan to cost ratio will be up to 90-95% ofcosts;

• FC to be paid a commitment fee equal to 2 to3%of the investment;

• Investment time line can be up to 5 years.

WHERE MORTGAGE DEALS GET DONE®

Ontario Mortgage Brokerage, Lenders and Administrators Act License #10164, Administrators License #11442

• Completed $1 BILLION of debt transactions in 2017

• Private equity real estate firm, managing assets of $2 BILLION in mortgage debt investments, real

estate and capital markets

CONTACT OUR BUSINESS DEVELOPMENT TEAM TODAY:

Michael Carragher 416.635.0221 ext. 245 mcarragher@FirmCapital.com

www.FirmCapital.com