Hendricks & Partners Capital, LLC provides its clients with a complete menu of structured financial products. Through utilization of these products, our clients can gain a significant competitive advantage when addressing asset profiles that are in transition or perhaps require more leverage than can be otherwise obtained under conventional debt mechanisms. Structured finance is typically short term or medium term financing designed to accommodate or enable a property transition, such as acquisition, rehabilitation & repositioning, partnership transitions, estate planning, under-levered first mortgage position, or limited equity resources for any of the above. The common denominator is that all of these debt structures are secured by a lien interest in the underlying real estate asset. Structured financial products that we are able to secure include, but are not limited to, the following:

Bridge Debt
transitional asset profile, quick-close, additional leverage for short term

• Transitional asset with an objective value-add strategy defined prior to bridge funding
• 80-85% LTV with typical 1.1 DSC on income in place: 70-75% LTV on "future income"
• 3-5 year maturities; rates ranging from 6%-7.5% depending on leverage and DCR
• First Lien position: may require partial guaranty until NOI benchmarks achieved
• Rapid execution: 10 to 30 days to loan funding with approved appraisal
• Minimum 12-18 month term; can be terminated earlier with additional fees

Mezzanine Debt
under-levered 1st TD, partnership transition, cash-out, fund improvements

• 2nd Lien position subject to consent of first TD lender and intercreditor agreement
• 1.1 combined DSC on both the underlying first and the 2nd lien positions on NOI in place
• Can go up to 85% LTV provided DSC target is maintained: rates from 5.5-9% per LTV
• Usually structured as coterminous with underlying First TD

Construction Mezzanine Debt
new development; alternative to JV equity, merchant builders

• 2nd lien position subject to consent of construction lender and intercreditor agreement
• Up to 90% LTC with 7% current pay rate and accrual to a 13-14% yield rate over term
• 24-36 month terms
• 30-45 days to fund

Portfolio Facilities
large portfolios with various asset maturities and shifting collateral base

• Offers hybrid fixed rate and floating rate debt platforms within a single facility
• Typically low LTV (65%) or less
• Flexible allocations of assets within facilities — or outside of facility as long as LTV stays within set boundary across all cross-collateralized assets
• Vary maturities within the portfolio; vary allocation weighting of fixed vs. floating debt
• Requires comprehensive portfolio relationship: typically $100M+ in underlying assets

Note Sales Financing
acquisition of non-accrual notes by 3rd parties or owner

• Secured by an ownership interest in the acquired note.
• 65-85% of the acquisition price of the note or 75% of the current FMV of the asset
• Short terms — typically 2-3 years
• Rates: case-by-case determination