Continental Partners offers all major loan types: fixed-rate, floating-rate, mezzanine, bridge and construction financing. We utilize our extensive capital relationships to create a bidding process among lenders ensuring our clientele signs a winning deal. Continental Partners’ proven track record demonstrates our ability to execute and deliver extremely competitive, innovative debt, mezzanine and equity loans throughout the entire capital stack. Continental Partners combines underwriting criteria and borrower objectives with lenders whose current financing programs best match our client’s request in order to provide the client with the most competitive capital and structure available.
After Continental Partners has been engaged we clarify the client needs, underwrite the property economics, identify options and define an optimal financing strategy. Thereafter, Continental Partners proactively manages the financing at every step: from the completion of offering materials and submission, to the negotiation of financing proposals, coordination of due diligence, commitment and ultimately the closing of the transaction.
Permanent loans are best suited for stabilized properties or properties near stabilization. Permanent loans can be structured with fixed periods of 3, 5, 7, 10 or even 15 years, with amortization schedules ranging from 15 years up to 30 years. Fixed rate loans are typically priced over the Treasury bill or Swap index, while floating rate loans are priced over the Wall Street Journal prime rate or LIBOR index. Loan-to-value varies by product type and capital source, with senior loans maxing out at 75-85% of appraised value. Closings are typically within 30 to 60 days from application.
Bridge financing, also known as an interim loan, delivers short-term financing for properties not quite ready for permanent financing. Bridge loans are often used to take advantage of a short‐term opportunity or fund property rehabilitation. Loan terms usually range from 12 to 36 months, with leverage as high as 90% of cost. Bridge loans in many cases, are interest-only with pricing structured over the Wall Street Journal prime rate or LIBOR index. Past closings have been inside of 30 days from application.
Construction financing is used to add considerable value to collateral. A portion of construction loan proceeds are commonly used to refinance (or acquire) land, while the other portion provides capital for ground-up developments. Leverage can be up to 80% of total project cost and pricing typically floats over the Wall Street Journal prime rate or LIBOR index. Loan terms usually range from 12 to 36 months. In most cases, smaller projects require a personal guaranty while larger requests (over $10 million) can often be arranged with no personal guarantee, subject to a completion guaranty. Closings range from 30 to 90 days from application.
Mezzanine financing, also known as “mezz,” is ideal for situations where leverage is key. Mezz loans can be recorded as a second lien on title or structured as a pledge against the partnership interest of the borrowing entity, so the lender in first position is not affected. Sponsors pursue this type of financing to push leverage up to 90% of the capital stack. Mezz loans can be structured coterminous with the first trust deed and closed inside two weeks.
Joint Venture Equity
Equity financing bridges the gap between available debt and the cost to develop, acquire, rehabilitate or recapitalize a project. Equity capital can be the most challenging element of any real estate transaction. Our expertise and ability to understand each client’s unique set of circumstances enables us to match the right equity structure with the correct equity partner. Continental Partners’ proprietary relationships with equity investors include: institutional investors, opportunity funds, hedge funds, family offices and high-net-worth individuals. Continental Partners’ equity sources focus on investment opportunities requiring between $5-20 million of equity capital. Generally, these groups will propose joint ventures with a 90/10 co-invest structure, where our relationships will put up to 90% of the required equity. The joint ventures are structured with a preferred return paid to the total capital invested, while promotes/waterfalls are distributed to the Sponsor(s) after the allocation of the preferred return.
Clients Trust Continental Partners to Finance: