Mezzanine Financing:
Bel Air Capital offers mezzanine financing for the development of new commercial properties, or the renovation and repositioning of existing properties, for both pre-leased and speculative development. All property types will be considered. Loan structures, pricing, advance to cost ratios and recourse requirements are flexible and will be tailored to meet the needs and risk profiles of individual transactions.
Equity Financing:
Entrepreneurs and management teams often struggle with the need for additional capital and are reluctant to take on more debt but frustrated with the prospect of finding the right equity partner. Some founders/owners are looking to sell the business to a group they trust, or to recapitalize the company as part of a succession plan without withdrawing completely from the business. Some management teams are looking to spinout from a parent corporation or go private. Others are looking for growth capital to fund expansion or acquisitions. Bel Air Capital. seeks to partner with entrepreneurs and management teams positioned for growth.
Sale Leaseback Transactions:
Bel Air Capital. can accommodate investment grade corporations who desire to move their real estate off the balance sheet by facilitating sale leaseback transactions.
Bridge Loans:
Bridge loans are short-term funds that "bridge" the gap between today's need for immediate cash to pay bills and the final closing of a pending investment deal or long-term financing package. Many times the borrower has an immediate need for financing and cannot wait for the length of time needed to process conventional financing. Bridge loans solve this temporary situation and because these loans usually do not have prepayment penalties, the borrower has the flexibility to replace the loan without penalty.
Pre-sale Investments:
Bel Air Capital. can provide developers with up to 100% of the capital necessary to develop a project along with providing a commitment to purchase the property upon completion of the project. This structure allows a developer to earn both a negotiated development fee and margin on disposition while investing little or no capital into the project and having the security of a certain exit. Terms and conditions surrounding this type of transaction are negotiated based upon the individual strength of the project and sponsorship suitability.
Forward Commitments:
This is a commitment to fund a loan at some point in the future, usually once certain contingencies have been met. They are frequently used as a method of avoiding the need for both a construction and a permanent loan.
Mortgage Swaps:
A mortgage swap allows an investor to purchase a new building without being constrained with LTV or DSCR restrictions. There is also no need of taking an institutional loan against an existing property to raise the necessary down-payment. Instead, the borrower obtains a first trust deed on the subject property, and gives the seller another trust deed on separate property. The buyer maintains control of both properties and uses up to 100% leverage to acquire the new building. The seller amortizes the capital gains taxes over the term of the installment sale and is more likely to get his full asking price.
Get approved for a commercial property loan. Click here.
