Capital Advisory Group: Debt & Equity Financing

Lee & Associates Capital Advisory Group is built to provide a full array of financial services including debt financing, equity placement, structured finance, recapitalization strategies and CRE advisory services for our clients. Leveraging several decades of industry expertise, creative strategies, and a commitment to excellence.

In today鈥檚 ever-changing debt market, it is imperative for an intermediary to provide real-time, accurate information to investors and developers. The Capital Advisory Group provides current and comprehensive information on rates and execution.

Lee & Associates鈥� proprietary database includes local, regional, national and international banking institutions, life companies, private credit; bridge, construction and mezzanine lenders and direct access to the CMBS market and special situation lenders. We take a tailored and targeted approach with relationship capital sources, while creating appropriate competition.

With expertise in industrial, retail, office/medical office, multi-family, mixed-use, hospitality, self-storage, student housing, and specialty assets, we deliver optimal financing and capitalization structure regardless of product type.

We welcome the opportunity to assist clients in achieving their investment goals and objectives. More than advisors, we are strategic partners with aligned interests; fully dedicated to helping clients succeed in a competitive market.

DEBT PLACEMENT SERVICES

Permanent Mortgage Financing
Bridge Financing
Construction Loans
CMBS Financing
Agency / HUD Financing
Credit Tenant Lease (CTL) Financing
Mezzanine Debt
Debt Recapitalization
Discounted Pay-Off (DPO)
Land Loans

Our underwriting procedure includes several important steps:

Identify and understand clients鈥� goals, both short- and long-term
Perform comprehensive financial modeling through reviewing and analyzing the asset鈥檚 past operating performance and near-term projected performance
Create a lender-friendly, comprehensive loan submission, competitively bid to targeted lenders
Provide expert negotiation with financing terms while selecting the best lender or investor to meet financing objectives
Manage / provide guidance throughout the due diligence process and ensure smooth closing coordination of the loan transaction

EQUITY PLACEMENT SERVICES

The Capital Advisory Group鈥檚 transactional and advisory experience has resulted in relationships with leading equity capital providers both domestic and foreign. Our capital partners provide an array of equity investments including:

Preferred Equity
Entity Level Investments
Family Office
High Net Worth Investors
Institutional Joint Ventures
Foreign / Sovereign Wealth Funds

CAPITAL ADVISORY SERVICES

The group offers a comprehensive range of advisory services including:

Hold / Sell Analysis
Portfolio / Property Valuations
Development Project Proformas / Return Analysis
Financing Strategies
Acquisitions Underwriting
Purchase and Sale Due Diligence
Market Studies
Broker Opinion of Value (BOV)

PERMANENT MORTGAGES

Fixed rate amortizing debt arranged through commercial and savings banks, life companies and pension funds to finance stabilized assets of all product types, with typical maturities of five, seven and ten years.

CONSTRUCTION LOANS

Floating interest rates, typically tied to SOFR or Prime, with no amortization. Flexible term plus extensions consistent with specific development timeline of the project. Ground-up, substantial rehabilitation or adaptive reuse projects. Interest reserves built into the loan structure eliminating future equity requirements for the Borrower.

BRIDGE FINANCING

Typically floating over SOFR, interest only interim loans for acquisition or renovation of existing assets. Provisions for additional earnouts predicated on 鈥淰alue Creation鈥� are commonplace. Reserves are created to minimize or eliminate additional equity investment by the Borrower during the loan term. Ability to artificially fix interest rate via a rate cap. Private credit, bank and life company execution available.

COMMERCIAL MORTGAGE BACKED SECURITIES (CMBS)

Fixed rate, long-term mortgage alternative to traditional permanent mortgages. This type of financing is best utilized for high quality assets or portfolios with strong, sustainable cash flows. Ability to solve for a DSCR based on I/O payments. 5- or 10-yr terms available. Non-Recourse.

MEZZANINE & PREFERRED EQUITY

Financing for a Borrower looking to increase leverage to asset value and/or amplify returns to existing equity stakeholders. As this financing is subordinate to the first mortgage, an inter-creditor agreement is often required to secure the second position鈥檚 legal rights. Interest coupons are significantly higher and may reach the mid-teens depending on the specifics of the transaction. The term never exceeds that of the first mortgage maturity.

RECAPITALIZATION

This may be as simple as replacing a maturing mortgage loan or more complicated scenarios warranted by a significant change in the property profile necessitating a different loan structure to match the current needs.

DISCOUNTED PAY-OFF (DPO)

There are circumstances when a lender is willing to consider a loan pay-off for less than is owned. In these situations, it is preferable to have an advisor/intermediary experienced in such transactions to represent ownership in the negotiation of terms most advantageous to the ownership.

LAND LOANS

Often in anticipation of a future development project, land must be acquired by the developer prior to the commencement of the entitlement process. Attracting accretive debt requires an understanding of the business plan, including take-out (construction financing and an ability to communicate this to prospective lenders.

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