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.
This summary is neither an offer to sell nor a solicitation to buy any securities. Any such offers and solicitations may be made only pursuant to a private placement memorandum for each fund.
| 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 |
No two investors 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.
Connect with Us Today
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.