Creative Debt Solutions

Targeted Commercial Real Estate Investment Guidelines

Commercial Real Estate Debt Investment Guidelines:

  • New loan origination – subordinate debt, preferred equity, stretch seniors
  • Acquisition of existing loans and loan portfolios
  • All U.S. markets, all major property types
  • Value-add and opportunistic acquisitions and recapitalizations
  • Non-recourse
  • Quick closings
  • EXCLUDED deal types: Construction/Development; Land; Single family homes

Subordinate Debt and Preferred Equity:

  • Mezzanine Loans, Preferred Equity and B-Notes
  • $10 million minimum loan size
  • 3-10 year loan terms (typically co-terminus with senior loans)
  • Leverage up to 95% LTC (of total budget)
  • Accrual (PIK) and participation waterfall structures available

Senior & Subordinate “One Stop Shop” Origination Program:

Senior Loan (only when Subordinate Loan is also being provided by Torchlight)

  • Leverage up to 70-75% LTV/LTC
  • Floating Rate:
    • 3-5 year loan terms
    • Flexible prepayment provisions

Mezzanine Loan / Preferred Equity

  • Same criteria as Subordinate Debt and Preferred Equity Program above

Debt Acquisitions:

  • Non-Performing and Sub-Performing loans
  • Single loans and loan portfolios
  • $20 million minimum investment size
  • Joint-venture investment structures available

Joint Venture (JV) Equity:

  • Investing JV equity of $10+ million on a select basis for exceptional opportunistic deals

Please contact us for additional information regarding the Torchlight lending program.