Investment Criteria
Northmarq Fund Management is a trusted source of mezzanine/B-note financing and joint venture/preferred equity under the following guidelines. No construction financing.
| MEZZANINE/B-NOTE | PREFERRED EQUITY | |
|---|---|---|
| PROPERTY TYPES: | Only existing multifamily, office, industrial/flex, retail, hospitality; NO GROUND-UP DEVELOPMENT. | Only existing multifamily, office, industrial/flex, retail, hospitality; NO GROUND-UP DEVELOPMENT. |
| INVESTMENT AMOUNT: | $3 million to $10 million | $3 million to $10 million |
| MARKETS: | Nationwide with a preference for top 100 MSAs | Nationwide with a preference for top 100 MSAs |
| TARGET LTV/LTC: | 65% to 75% | 70% to 80% |
| PRICING: | Fixed or floating. ~12+% | Overall target return of 13% to 15+% with flexible pay and accrue structures available |
| MINIMUM DSCR: | 1.15x combined DSCR | 1.00x to 1.10x; may include reserves |
| TERM: | 2 to 10 years | 3 to 7 years |
| AMORTIZATION: | Interest-Only | Interest-Only |
| FEES: | Fixed: none Floating: market fee structure | Negotiable; generally 1% in / 1% out |
| PREPAYMENT: | Yield maintenance/minimum profit multiple determined case-by-case | Yield maintenance/minimum profit multiple determined case-by-case |
| RECOURSE: | Non-recourse subject to market-standard carve-outs | Non-recourse subject to market-standard carve-outs |
| COLLATERAL: | Equity pledge and intercreditor agreement/co-lender agreement | None |
Not all investments will meet each of the criteria described above. We will consider opportunities outside of the parameters on a case-by-case basis.
No two investments are alike
Whether you’re looking to monetize trapped equity or bridge an equity gap, we’ll help you identify your options and choose the right solution.
Trust and dependability are the keys to any great partnership.
Our experienced, committed team develops strong relationships with forward-thinking investors and provides flexible capital to commercial real estate entrepreneurs that make great projects happen.
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Access Capital for Your Next Venture
Interested in accessing capital for your investment opportunity? We welcome you to complete this form to begin the process.
While our investment criteria are outlined above, we understand that not all opportunities will perfectly align with those parameters. We are open to considering a wide range of possibilities and encourage you to submit your information even if your investment falls outside of the described criteria. We review each submission on a case-by-case basis.
Locations:
4949 Meadows Road, Suite 490
Lake Oswego, OR 97035
120 West 45th St, Suite 2610
New York City, NY 10036