Lending Parameters

Aristone Capital provides subordinate debt and preferred equity for construction projects and other transitional or value-add real estate transactions.

 

Subordinate Debt Investment Size:  $3.0 - $40.0 million

Investment Types:  mezzanine, preferred equity, B-note/junior participation

Transaction Types:  construction, adaptive re-use, re-development, bridge (with and without current cash flow), pre-development

Loan Term:  12 months – 36 months (plus extension options) - longer term opportunities considered on a case-by-case basis

LTC/LTV:  up to 80%, but may be higher for select opportunities

Debt Yield/DSCR:  no minimum at closing

Pricing:  depends on transaction, structure, market, sponsor

Property Types:  multifamily, residential condo (construction and inventory loans), retail, office and industrial

Markets: top-50 MSAs - consideration given to smaller markets with strong demand generators and positive demographic growth trends

Recourse:  deal-by-deal basis, but typically non-principal recourse with standard bad boy carveouts and other customary guarantees