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More on Mezzanine Financing from Remington

January 30, 2010
posted by Joel

We are actively deploying funds for mezzanine financing opportunities. Please contact me for more informatioin about these new opportunities.

Mezzanine financing falls between senior bank financing and equity financing.  It can serve brokers well in a variety of situations.  Mezzanine financing is semi-permanent capital like equity, so the borrower does not have to make monthly or quarterly payments of principal.  It usually has a 5 to 7 year term.

Senior lenders like banks look at mezzanine financing as equity because it is semi-permanent capital and subordinated to bank debt.  The bank gets paid first in the case of a problem.

Mezzanine financing looks like debt to owners because it often does not dilute the ownership of the company like selling stock would do. So a new investment of mezzanine debt can pay off some of the burdensome other bank debt with a more patient capital that doesn’t come with a reduction in ownership like selling equity brings.

Mezzanine lenders that Remington works with are extremely busy these days because their product is a perfect fit for this market.  A well-structured mezzanine investment will reduce an owner’s leverage, improve immediate cash flow, and preserve the equity of a business for a sale down the road.

Mezzanine loans are a little expensive.  Compared to a bank loan, mezzanine financing carries an interest rate in the range of 12% to 14% depending on the deal.  That’s more expensive than a bank, but the cash flow is often better because the principal does not need to be repaid until the end.  And those interest rates are less expensive than selling ownership shares in a company with depressed valuation.  Sometimes mezzanine transactions include an “equity kicker” that gives the lender options to buy stock at a fixed value so that there’s an extra return when selling down the road.  That’s not a bad thing because it brings in an experienced investor who shares the goal of a good exit event.

If your bank is making you nervous, or if you are making them nervous, or if you just want to strengthen your balance sheet as you wait for the market to recover, mezzanine financing could be the answer.  Let me know if you have questions, and let’s talk about whether a mezzanine solution is in your future.

Thank you!  Joel Nathanson – Remington www.remingtonfg.com

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A Much Better Year for Commercial Real Estate Brokers, Investors and Owners

January 24, 2010
posted by Joel

In today’s market I continually see positive signs.  I’m pleased to report that our Capital Markets Group at Remington has successfully secured funds that we are deploying to clients.  It is a welcome change from 2009, and I’m bullish on 2010 not only because of our fast start but because of several factors.

One factor that points to a much better 2010 is the help we’ll receive from foreign investors. Did you see this article in MBA Newslink?  http://www.mortgagebankers.org/tools/FullStory.aspx?ArticleId=10327#full

There will continue to be a strong flow of foreign money into the U.S. commercial real-estate market over the next 3-5 years. This is happening for a number for reasons.

One reason is that property values in the US are down anywhere from 35-50% from the peak in late 2007, creating many excellent investment opportunities in prime markets.

Another reason is that the US currency continues to be devalued against other world currencies, making investing in the US relatively even more valuable for them.

According to the article, foreign capital will be dispersed mainly via equity plays, but many foreign investors will consider some debt opportunities.

Remington has a significant position in the US and around the world. Whether you’re a broker here or there, let’s talk about the opportunities to get your transaction completed this quarter.

Thank you – Joel Nathanson, Remington

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Available Financing Programs at Remington

November 8, 2009
posted by Joel

The financing professionals at Remington provide each and every client with unmatched market expertise, including top-notch advisory services capable of successfully restructuring even the most complex transactions. Importantly, our professionals have unsurpassed access to a well-funded network of public and private capital sources representing a global capability that ranges across the capital stack for minimum transaction amounts of  $500,000 in the U.S. and $5 million abroad.

Available Programs at Remington

Senior Debt

  • All Property Types and Corporate Purposes
  • $500,000 Minimum in the US and $5,000,000 Internationally
  • Acquisition, Development, Construction, Construction to Permanent, Rehabilitation, Bridge, Refinance

Mezzanine Debt

  • All Property Types and Corporate Purposes
  • $500,000 Minimum in the US and $5,000,000 Internationally
  • Aggregate Leverage up to 85%
  • Acquisition, Development, Construction, Construction to Permanent, Rehabilitation, Bridge, Refinance

Preferred Equity

  • All Property Types and Corporate Purposes
  • $500,000 Minimum in the US and $5,000,000 Internationally
  • Acquisition, Development, Construction, Construction to Permanent, Rehabilitation, Bridge, Refinance

Equity

  • All Property Types and Corporate Purposes
  • $500,000 minimum in the US and $5,000,000 Internationally
  • Acquisition, Development, Construction, Construction to Permanent, Rehabilitation, Bridge, Refinance

Joint Venture Financing

  • All Property Types and Corporate Purposes
  • $500,000 minimum in the US and $5,000,000 Internationally
  • Active Investment
  • Acquisition, Development, Construction, Construction to Permanent, Rehabilitation, Bridge, Refinance

Remington Arranges Specialized Financing For The Following Property Types and Business Purposes:

  • Land
  • Industrial
  • Multifamily
  • Office
  • Retail
  • Mixed Use
  • Hospitality
  • Medical Office
  • Healthcare Facilities
  • Senior Housing
  • Student Housing
  • Special Purpose
  • Restaurant
  • Self Storage
  • Manufactured Home Parks
  • Business Working Capital
  • Business Investment Capital
  • Entertainment & Multimedia
  • Franchises
  • Bridge Loans
  • Business Loans without Real Estate
  • Hard Money
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