Permanent Mortgages
Permanent Mortgages
Permanent Mortgages
Long term fixed rate debt arranged through life companies, pension funds, savings banks, commercial banks and Wall Street investment houses on all types of income producing properties.
Construction Loans
Permanent Mortgages
Permanent Mortgages
1-3 year Open-End Construction Loans at fixed orfloating rate -based pricing on all types of properties such as rental apartments, condominiums, shopping centers, office buildings, hotels and industrial properties. The Cohen Organization LLC is a recognized expert in underwriting and placing of ADC or Acquisition, Development and Construction loans throughout the local market and Nationwide. Loans vary and are generally stacked with Senior floating rate, Mezzanine and other structure financing depending on the equity investment of the sponsors.
Bridge Loans
Permanent Mortgages
Bridge Loans
aka Interim and Acquisition Finance
Designed to close quickly and short term in nature, usually 12 to 36 months for Bridge Financing and/or Acquisitions. Floating and fixed rate loans available. Bridge loans are often used for commercial real estate purchases to quickly close on a property, retrieve real estate from foreclosure, or take advantage of a short-term opportunity in order to secure long-term financing. Bridge loans on a property are typically paid back when the property is sold, refinanced with a traditional lender, when the borrower's creditworthiness improves, the property is improved or completed, or there is a specific improvement or change that allows a permanent or subsequent round of mortgage financing to occur.
Land Loans
Credit Lease Financing
Bridge Loans
Land loans are financed typically at lower percentage of their value depending on the location and the entitlement status and of course the sponsor's experience.
Credit Lease Financing
Credit Lease Financing
Credit Lease Financing
Long term fixed rate debt on all types of credit related tenants, interest only options and self-liquidating loans with balloon payments and residual value insurance (RVI) if applicable.
Mezzanine Financing
Mezzanine Financing
Mezzanine Financing
Mezzanine financing is a unique financing instrument which doesn’t cleanly fall into a specific category of the capital markets financing quadrant. It’s a general term that refers to any financing vehicle (debt or equity but typically issued by private sector participants) that bridges the gap between senior debt and sponsor equity. It can be structured as preferred equity or as debt. In general, traditional mezzanine financiers are not entitled to receive returns on their investments until senior debt holders are fully compensated. Because of its subordinate position, the mezzanine loan assumes a higher risk profile than senior debt but retains a less risky position than preferred equity. With this understanding, Mezzanine debt investors seek returns between senior debt lenders and preferred equity investors but this will largely depend on how the deal is structured. Debt or equity to enable borrower to obtain close to 100% financing for existing properties as well as property acquisitions.
Preferred Equity
Mezzanine Financing
Mezzanine Financing
Preferred Equity investments are in a junior position behind the first mortgage, but are in a senior position to the sponsor’s equity investment, often referred to as common equity. For example, when net cash flow is produced from a property or profits are earned upon a capital event (sale or refinance), preferred equity investors are paid after the senior lender, but before the common equity. Since preferred equity is junior to the senior mortgage, it carries a higher degree of risk and warrants a higher rate of return than the interest rate charged on the first mortgage. Preferred equity can be structured in a number of different ways, but usually involves a fixed rate of return that is satisfied through a “pay rate” or “current pay” from net cash flow and an “accrual rate” that is typically paid upon a capital event. The returns of preferred equity investors are typically capped, so the common equity can reap most, if not all, of the profits after the preferred equity investors are paid. Conversely, preferred equity investors are willing to cap their upside by protecting their downside with a more secure position in the capital stack.