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Equity Investment Programs
Property Types: Multifamily, MHP, Student Housing, Office, Industrial, Retail
Investment Amounts: $1MM-$10MM
Investment Terms: Typically up to 5yrs
Control Rights: Terrace capital or assigns is granted an accelerated means to assume control of borrowing entity in the event of default by co-owner.
Equity interest is typically secured by prorata interest in general and limited partnerships that comprise property ownership.
DSCR: 1.25X
Maximum LTV: 90% (Sponsor must contribute a minimum of 10% hard equity)
Rate: Typically priced with a target IRR which is realized through a combination of origination fees, a preferred pay rate, and a "lookback" payment due upon sale or refinance.
Acknowledgement: First mortgage lender required to acknowledge Terrace Capital's equity position.
Co-Owner has recourse obligation for 1st mortgage assumption fees.
Geographic Location: Primary and Secondary markets preferred. (Nationally)
Closing: Borrowing Entity- Single Purpose Entity required
Prepayment- open
Escrows- Required for Taxes and Insurance
Third Party Reports: PCA- Property Condition Report
Phase I- Environmental
MAI Appraisal
Application Fee: None




 

 

 

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