Capay Financial Advisors
Commercial Real Estate Financing Solutions
Our Solutions
Our Process
Crafting financing solutions that address the unique needs of our clients in the commercial real estate sector.
01.
Understand Your
Vision
Understanding your vision is the crucial first step in developing the optimal deal structure. We take the time to know your story at a granular level. Your goals become our goals. We specialize in navigating the commercial debt and equity markets on your behalf, so you can focus on running your business. Our proven expertise, creativity, and exceptional service assure your vision will be realized in the most efficient and cost-effective manner possible.
02.
Optimize the
Capital Stack
Today’s capital markets are increasingly complex and nuanced. Our singular focus is securing the best possible financing solutions for your project. Acting as your advisor, we source multiple types of debt and equity to match any deal type, including acquisitions, re-financings, bridge loans, and constructions loans. We are fully agnostic regarding asset class, geography, and capital stack. Our deep ties to local and national lenders and investors allow us to negotiate the optimal mix of capital, at the lowest possible cost.
03.
Market the
Project
Each project is unique, so we never mass market our client’s deals. We take the time to devise and execute a marketing strategy that targets a tailored group of capital sources that are ideal for your transaction. Investment criteria can vary widely. We know precisely what our investors are looking for in a new project. Our investors know that we don’t waste their time with mismatched opportunities. This means our phone calls get returned, and our clients get their desired results in a timely manner.
04.
Drive to a
Successful Close
We have closed numerous complex assignments across a wide range of industries and transaction types. This experience translates into certainty as a transaction moves towards a close. We vet all key issues and potential hurdles in advance, and diligently craft appropriate mitigates. As your relentless advocate, we ensure that final closing documents are fully aligned with the initial term sheet. With our sure hands at the helm, there will be no surprises.
01.
Understand Your
Vision
Understanding your vision is the crucial first step in developing the optimal deal structure. We take the time to know your story at a granular level. Your goals become our goals. We specialize in navigating the commercial debt and equity markets on your behalf, so you can focus on running your business. Our proven expertise, creativity, and exceptional service assure your vision will be realized in the most efficient and cost-effective manner possible.
02.
Optimize the
Capital Stack
Today’s capital markets are increasingly complex and nuanced. Our singular focus is securing the best possible financing solutions for your project. Acting as your advisor, we source multiple types of debt and equity to match any deal type, including acquisitions, re-financings, bridge loans, and constructions loans. We are fully agnostic regarding asset class, geography, and capital stack. Our deep ties to local and national lenders and investors allow us to negotiate the optimal mix of capital, at the lowest possible cost.
03.
Market the
Project
Each project is unique, so we never mass market our client’s deals. We take the time to devise and execute a marketing strategy that targets a tailored group of capital sources that are ideal for your transaction. Investment criteria can vary widely.We know precisely what our investors are looking for in a new project. Our investors know that we don’t waste their time with mismatched opportunities. This means our phone calls get returned, and our clients get their desired results in a timely manner.
04.
Drive to a
Successful Close
We have closed numerous complex assignments across a wide range of industries and transaction types. This experience translates into certainty as a transaction moves towards a close. We vet all key issues and potential hurdles in advance, and diligently craft appropriate mitigates. As your relentless advocate, we ensure that final closing documents are fully aligned with the initial term sheet. With our sure hands at the helm, there will be no surprises.
Capital
Relationships
We source debt and equity for all property types and maintain strong correspondent relationships with a nationwide network of lenders and investors. Our capital partners include :
- Real Estate Private Equity
- Hedge Funds
- Mortgage REITS
- Credit Companies
- CMBS/CLO Conduits
- Commercial Banks / Credit Unions
- SBA/SBIC
- HUD/FNMA/Freddie Mac
Agnostic & Myopic
We do not limit our capital-raising activities to any one asset class,geographical region or capital type. Our only goal is identifying the best mix of debt and equity for our clients.
- Acquisitions & Refinance
- Ground-up Development
- Rehabs & Renovations
- Foreclosures
- Hotel PIPs, Rebrands
- Turnarounds
- Historical Buildings
- Tax Credits, Rebates & Tiff
- Adaptive Reuse
- Opportunity Zones
- Quick Closings
- Partner Buyouts
We have worked with a wide range of property types spanning the spectrum of the commercial real estate market.
- Retail
- Industrial
- Multifamily
- Mixed-use
- Special-use
- Hotel
- Office
- Student Housing
- Healthcare
- Land
- Self-Storage
- Manufactured Homes
We have worked with a wide range of property types spanning the spectrum of the commercial real estate market.
How May We Help You ?
Senior Debt
01. Land Loans
Pre-Development
A land development (or pre-development) loan allows a developer to take an unimproved parcel and break it up into smaller, improved parcels upon which homes or commercial buildings will be constructed. This type of loan is secured by a mortgage, and is designed to finance the improvements necessary to convert raw land into construction-ready building sites.
02. Construction Loans
Development
Construction financing is a short-term loan used by borrowers to finance the costs of building from the ground up. The loan terms depend on the product type and the amount of time it takes to complete the building process. For most construction loans the borrower is required to provide some level of recourse.
03. Bridge Loans
Transitional
Bridge loans are flexible short-term financings that may include an unusual or complex component to the transaction. This type of financing enables the borrower with the necessary time frame to reposition and stabilize a property. Then a longer-term loan will be arranged to pay off the bridge loan. Bridge loans offer several advantages. For example, they can allow borrowers to achieve higher leverage, and often have limited or no pre-payment penalties. The duration of bridge loans is usually six months to five years.
04. Permanent Loans
Stabilized
Permanent loans are the most common type of senior debt in the commercial real estate industry. Permanent loans usually enjoy the lowest interest rates among the various types of commercial real estate loans. Borrowers can arrange loans with terms from 5 years to 30 years, based on the property type. Permanent loan programs provide the most sophisticated and flexible long-term financing solutions for the commercial mortgage industry.
Floating rate loans : If a loan has a floating interest rate, then the interest rate fluctuates over the duration of the loan. Floating rates typically fluctuate with the overall market, with an underlying index, or with the prime rate. The primary advantage of a floating interest rate is that it moves with the market rates. Of course, this can also be a disadvantage, depending on which way the market rates move.
Fixed-rate loans : If the loan has a fixed interest rate, the interest rate remains constant for the duration of the loan. The primary advantage of a fixed interest rate loan is the elimination of uncertainty. Once the loan agreement is finalized, the value of the future interest payments is known.
How May We Help You ?
Mezzanine Debt
Unlike senior debt, which is directly secured by the property via a mortgage, a mezzanine loan is only indirectly secured by the underlying asset. The collateral for a mezzanine loan is a pledge of the equity/partnership interests of the borrowing entity. The borrowing entity is usually the property-owning entity. Mezzanine loans typically include an inter creditor agreement with the senior lender, and are usually non-recourse, with no principal repayment guarantee.
How May We Help You ?
Preferred Equity
Preferred Equity is very similar to mezzanine debt with regard to its pricing and pay structure. Sometimes mezzanine financing is not possible due to lender prohibition, prior encumbrances of the partnership interest or regulatory requirements. In these circumstances, preferred equity is a viable alternative. A preferred equity investment is a direct holding of equity interest in the property-owning entity. The preferred equity investor negotiates a recognition agreement with the underlying senior debt lender.
How May We Help You ?
Joint Venture Equity
Capay accesses equity through a broad range of high-net-worth individuals, family offices, pension and endowment funds along with institutional equity investors. We identify the capital structure appropriate to our clients’ needs, based on an in-depth understanding of their capital requirements. Our knowledge of institutional capital investment preferences allows us to effectively and efficiently match capital with a specific transaction and sponsor.