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Structure Type:
Joint venture
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Property Type:
All product types for opportunity
buys, value creation plays/rehabs, preferred equity or yield plays.
Prefer apartments and industrial for new construction (very selective
growth markets). 50% +/- preleasing typically required for new retail
and office construction.
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Amount:
$1 to $5 million
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Capital
Structure:
Typically, PRG invests, or secures such
investment, for 50% to 90% of equity capital with 70% to 80%
Loan-to-Value debt. Structures available such that standard partner's
share in upside (residual) can be increased to an amount greater than
its initial capital (i.e. partner's "promote") based on added value of
partner to deal.
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Term:
Typically 1 to 5 year
holding period. Prefer 2 to 3 year hold.
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Preferred
Returns
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9% to 12% on all equity invested
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Pricing
Very flexible. Preferred returns, size of
promote, need for IRR lookback, equity return preference, and other deal
items vary depending upon transaction risks and amount of partner
equity.
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Placement Fee:
Fee varies dependant upon complexity of
transaction