SERVICES

Permanent/Fixed Rate Financing is the core product that is utilized most throughout the commercial real estate industry. Permanent loans usually enjoy the lowest interest rates, the longest terms, and the longest amortization schedules. Mansfield works with banks, Wall Street, life insurance companies, private lenders, and preferred equity to supply the most diverse array of permanent solutions for our clients.

Construction financing is a short-term loan utilized by borrowers to finance the costs of building a facility from the ground up. Every loan varies depending on the product type and the amount of time it takes to complete the building process. Mansfield has the ability to provide higher leverage and non-recourse construction financing for a higher cost.

Bridge financing refers to all types of flexible short-term financing strategies that may have a challenging and/or complex component as part of the transaction.

Mansfield’s ability to provide bridge financing provides the borrower with the necessary time to reposition and stabilize the properties, at which time a longer-term loan will be provided to pay off the bridge/renovation loan. The duration of bridge loans typically ranges from six months to five years. Bridge lenders may be willing to underwrite to lower debt-service-coverage ratios (DSCRs) and lend on higher loan to costs (LTC).

Such lenders believe that the borrowers’ business plan will increase the revenue from the property and increase the DSCR in future years.

Many of our clients that buy land for the purpose of developing it can face entitlement risk. Mansfield tracks land lenders that can underwrite around these risks and provide 12-month to 24-month loans amounting to 50% to 75% of the land cost.

Typically our land loans range have interest rates of 7.5% to 10% with recourse.

Mansfield can help borrowers who need to bridge the gap between what a conventional lender is willing to finance, and what the total amount is needed to complete a transaction. The transaction can be structured as partnership debt, as preferred equity, or as a mezzanine loan.

Mezzanine debt is generally structured as a loan that is secured by a property and senior to any equity, but junior to the senior loan on the property. Preferred equity, on the other hand, is an equity investment in the property-owning entity. It is not secured by the property, but rather by an interest in the entity investing in (or owning) the property. Both structures carry a preferred return that can be paid off with refinance or a sale. Some structures have the lender/investor remaining in the deal with a look-back IRR.

Mansfield Equities has created an opportunistic real estate fund that deploys small bridge debt on select deals. Below is a sample of recent fundings that Mansfield has lent on or invested with the sponsors. Each of these deals has had a unique aspect of execution risk or timing—that allowed for the Fund to invest or lend directly. This capital is generally inefficient capital- where most lenders or funds can’t react to these situations like a true entrepreneurial pocket of capital.