HAVING THE SERVICES YOU NEED MEANS MORE
At Mansfield Equities, we understand how to structure a deal to ensure that it not only gets done, but that its's the best deal for you.
Permanent/Fixed Rate Financing
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, longest terms, and longest amortization schedules. Mansfield works with Banks, Wall Street, Life Companies, Banks and Fannie Mae/Freddie Mac to supply the most diverse array of permanent solutions for their 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 are all types of flexible short-term financing strategies that may have a challenging and/or complex component to the transaction.
Mansfield’s ability to provide this type of financing enables the borrower with the necessary time frame for the properties to be repositioned and stabilized, at which time a longer-term loan will be provided to pay-off the Bridge/Renovation loan. The duration of these loans typically ranges from six (6) months to five (5) years.
Bridge lenders may be willing to underwrite to lower debt-service-coverage ratios (DSCRs) and lend on higher loan to costs(LTC). They believe that the borrowers’ business plan will increase the revenue from the property and increase the DSCR in future years.
Many of our clients are buying land to develop that often will have entitlement risk. Mansfield tracks land lenders that can underwrite around these risks and provide 12-24 month loans between 50-75% of Land Cost.
Typically these loans range between 7.5%- 10% in interest rate with recourse.
Preferred Equity / Mezzanine Loans
Mansfield can help borrowers who need to bridge the gap between what a conventional lender is willing to finance, and the total amount needed to complete a transaction. The transaction can be structured as partnership debt, preferred equity, or 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 with it 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.