Our debt placement and structured finance services focus on meeting clients’ capital needs and proactively protect them by identifying associated risks. Our expertise includes recapitalization to maximize leverage, joint venture equity, debt placement on non-cash flow assets (adapted reuse projects), stabilized assets, and ground up construction projects. We identify the intrinsic nature of complex structured loan requests and articulate the strength of projects to vetted capital providers.
Who we serve
Real Estate Developers, Builders, Syndicators, Operators, and Owners.
What we do
We provide the commercial real estate investor customized capital solutions to maximize the yield, perform detailed analysis to identify risk issues and craft risk mitigation strategies.
How we do it
In-depth interviews with our clients to understand their real estate expectations.
Prepare a detailed financial model and capital plan and analyses of capital structure options.
Leverage vetted capital provider relationships to minimize the possible re-trades from credit decisions.
Collaborate with borrower’s counsel to negotiate favorable financial covenants.
Why should you hire us?
Access undiscovered capital providers. Commercial real estate debt and equity is complex and access to the right capital providers on a timely basis is not always straight forward.
Structure a forward-thinking capital strategy from acquisition to planned disposition to meet the business strategy.
Create a competitive market place to optimize the capital request. We represent the client to access the capital market. Capital providers understand the client is serious to secure the debt or equity request and will provide the best possible proposal to win the assignment.
Minimize the re-trading from capital providers. While no one can predict the outcome of the credit decisions, we minimize the risks by providing a detailed pre-underwriting debt or equity request to reputable capital providers.
How we can help
The most basic and usually the least costly form of real estate debt is permanent loan secured by the property. Chessboard Capital, Inc. maintains relationships with hundreds of private and institutional capital sources and matches them to clients’ business strategy.
Permanent loans could be either at fixed rates to mitigate rising interest risks or at floating rates to anticipate interest rate declines. Fixed rate permanent debts are usually from 3 to 40 years with amortization from 15 to 40 years. Floating rate permanent loans are usually priced over Wall Street Journal Prime Rate or Libor index.
Bridge loans support short term financing needs for properties that do not have stabilized cash flows that are generally served by permanent financing. Bridge loans are often used to preserve equity capital and enhance the yield of the real estate investment.
Construction loans are used for builders for speculative or built to suit real estate projects. Fixed or floating rate financing are available from various lenders. Limited or no personal guarantees are available with larger deals and for builders with verified track records.
Mezzanine debt is subordinate to senior loans but senior to any equity. Mezzanine debt is often secured by a pledge of partnership interest and priced at a higher interest rate to senior debt. Chessboard Capital advises clients with proper mezzanine debt to increase the leverage and yield. Preferred equity often has similar terms and conditions to mezzanine debt which usually takes the form of a direct equity investment in the entity, with a fixed, preferential return that is paid prior to distributions to the “common” equity interests in the owner.
Chessboard Capital enables our clients to access institutional equity investors for development, value-add, core plus and build to suit projects. We further help our clients evaluate the benefits of different waterfall structures.
With our integrated platform, expertise in real estate and experience in financing, we provide our clients a unique advantage to turn their vision into reality.