REAL ESTATE FINANCE

We are able to secure equity and debt financing on most all real estate projects in the United States and in certain areas abroad.  Our financing sources can respond to situations that are either time, interest rate,  or dollar sensitive.

HARD MONEY – HIGH YIELD LENDING

Hard money lenders make loans generally outside the "traditional" lender's box. Our sources of hard money lenders can react quickly on most all types of real estate situations.  Except for their loan to value requirements, there is basically no upper dollar, project or geographic limitation.  This is short term capital and a clear exit strategy is required.

Through our network of national and international financing sources, we are able to procure debt  financing on almost any type of existing or proposed project. Should interest rates remain or stay near these levels, the Year 2007 would be an excellent opportunity to refinance but for interest rates the tendency is for rates to rise.

                                                                          BRIDGE FINANCING - SPECIAL CIRCUMSTANCE FINANCING

 We have sources of aggressive capital which can act quickly on  real estate financing situations, particularly the more difficult, non-traditional type.  There is no upper dollar, project or geographic limit.  This is short term bridge capital and a clear exit strategy is required. Projects can be financed not only in the United States but internationally.

BASIC PROJECT INFORMATION REQUIREMENTS
 

The goal is to make sure the lender, equity investor has the correct perception of you, your company and real estate goals.  For it is their perception of you as a real estate operator that counts the most.

 We operate under the three “C”’s.

1.      C ash flow

2.      C ollateral

3.      C haracter of the developer/real estate operator

If we can establish the three “C”’s with all documentation pointing to being good to excellent, we can get any deal financed.  Why?  Simply because by doing this, the lender or equity investor has a good to excellent perception of you, your company and your real estate goals.

Thus, in order to evaluate and ultimately get your project financed, the basic information required is:

a.      An executive summary of the project, description of the financing required, what the financing will be used for, an exit strategy to either retire the debt or take out the equity partners, photographs and other useful exhibits.  This should all be emailable if possible.

b.      Background and financial statements of the principals and the development team.  This should also include similar, successful projects done in the past.

c.      Due diligence materials: appraisal, market study, feasibility study, environmental reports, etc.

 After review of materials and our exclusive engagement, we will formulate the optimum strategy that will finance the property with the best terms in the shortest possible time frame.

 CURRENT ASSIGNMENTS FOR 2007

1. Equity and debt financing for the construction of 9 industrial buildings     ( to be speculatively built) in the Dallas, TX area for a mid level real estate company.. The amount is  approximately $14,000,000 per building.

2.  Equity financing for a ski side luxury condominium project in Steam Boat Springs, Colorado.

3. $150,000,000 financing package for the owner of an airport near Oklahoma City for the expansion of that airport plus the financing of the owner’s  aircraft manufacturing business and  aircraft parts business also located at the airport.

4. Debt and Equity Financing of the "Jimmy Connors Tennis Ranch and Casino" in Nevada.  The total amount to be raised $136 Million.

5. An equity joint venture partner for a real estate family based in Plainview, Long Island, New York.  The amount to be raised for equity in excess of  $30 Million.

6. Debt financing for two portfolios of flagged hotels in New Jersey, one located at Newark Airport.  The total amount of of financing is $14.5 Million.

7.  $15,000,000 construction / credit line financing for a series of housing developments in Texas for a medium sized builder/developer.

8. Financing of numerous development projects in Beijing, Guangzhou, Kunshan, Mudanjiang - referred by a CPA firm from Hong Kong.

 9. Financing for a Florida real estate company to :a. refinance out a hard money loan used to acquire, rehabilitate and re-tenant an existing shopping center, b. develop residential condominiums on another portion of the site and c. develop a hotel on another portion of the site.

10. An historic hotel renovation combined with a condominium conversion in Sebring, FL.  The aggregate amount of financing is approximately $19,500,000.

11. A four phase condominium construction project in Dallas, TX about two miles away from the airport.  The aggregate amount of financing sought is approximately $100,000,000 for both debt and equity.

12. We were exclusively retained in July 2006 by a New York City area developer/property owner.  They own about 90 building containing approximately 4,000,000 square feet. Our objective is to raise equity to bring their holdings to 8,000,000 square feet.

13. In April 2007, we were retained by a prominent New York City based developer to raise equity for a luxury hotel - condominium on 5th Avenue near Central Park in the amount of $25,000,000 and $27,000,000 for 149 units of a luxury condominium development on the boardwalk at historic Coney Island, NY.  This assignment is the starting point in the raising of equity for a number of projects for 2007 and 2008.

14. In April 2007, we were retained by a Florida development company to raise $60,000,000 of equity for various projects from shopping centers to residential housing.

15. In April 2007, equity is being sought for an 850 unit condo-hotel in Biloxie.  This is part of a series of equity raises for various projects including condominium units in Jersey City.

Please let us know what projects you would be interested in having us look at. You may email project specifics in confidence to Howard Jackson at info@integratedreal.com 

Common Real Estate Capital Structures...

The following capital structures provide our capital partners and investors with vehicles to generate risk managed returns. The following table represents some of the more common capital structures used in today's marketplace.

Equity

Traditional equity investment into the ownership entity as a partner, member or stockholder. Investments are with qualified developers and operators in transactions where there is a significant opportunity for value creation or cash flow enhancement. The equity and preferred return are typically distributed on a pari passu basis.

Preferred Equity

Preferred Equity is best suited for situations where the developer lacks the additional equity capital required to bridge the gap between debt and purchase or development cost. A Preferred Equity investment is typically structured so that the investor receives its investment plus a preferred return and a participation in profits to achieve their target IRR.

Mezzanine Debt

Mezzanine Debt provides developers with subordinate debt funding up to approximately 90% of the value of the property. This program is attractive to developers who want to retain a greater share of the profits. The first mortgage is typically straight debt and the second mortgage is the higher risk and higher yield instrument, which has either a higher coupon or exit fees. The lender may be the same for both debt instruments or could be two different lenders. This structure is particularly good for developers who want to retain 100% ownership.

Participating Debt

Participating Debt leverages the property to 90% of the cost and as much as 80% of the stabilized value of the property, typically in a blended first and second mortgage structure. This type of structure has many of the characteristics as Mezzanine Debt, but typically there is only one lender.

Development Agreement

The investor actually takes the ownership position and through a Development Agreement contracts the developer to build and manage the asset. The developer receives an agreed upon percentage of the profits. This is ideally suited for developers who have little to no cash equity of their own, young developers with an experienced background but just starting out on their own and for those developers who want to minimize risk.

                           KEY POINTS ON QUICKLY FINDING THE EQUITY CAPITAL PARTNER FOR YOUR PROJECTS

1.         Make the right connections: Before doing anything else, research your options for financial guidance carefully. Brokers, financial advisors and financial institutions all offer assistance in the hunt for capital, but not every financial expert will offer to — or be able to — introduce you to a full range of investor sources. Above all, many advisors will be unable to match your needs to the right investor, and many will lack sufficient expertise and experience in the commercial/residential real estate fields. An advisor with a tested approach will offer negotiation strategies that will create clear financial benefits for you.

2.         Diversify investor targets: The best equity capital sources are often not the first that come to mind. While many developers and their advisors are inclined to pursue established Wall Street investors, it's vital to consider every potential source. Ultimately, it is in the process of targeting, interviewing and assessing capital sources that true financial and strategic compatibility can be measured. Beyond traditional Wall Street capital sources, foundations, high net-worth individuals, pension funds, foreign sources and family office investors are all viable considerations. Developers and owners who want to succeed must consider every option.

3.         Package the deal: Equity capital transactions are made and broken in the communication stages. Without clearly developing and expertly packaging your project, you might subject yourself to investment shortfalls. Properly outlining a strategy and clearly structuring the transaction is mutually beneficial for the equity investor and the developer or acquirer, and is critical to consummating the transaction.

4.         Act fast: With competition for real estate capital at its highest point in years, speed matters. Developers who secure the right capital partner under the best terms have started from a position of knowing their options and successfully targeting potential investors. In order to act quickly to expedite a project, you not only need to understand your potential targets, but you also must understand the extent of your role in the partnership.

5.         Know the details: Before you sign an agreement, make sure it is airtight and in your best interest. You will need to clarify key elements upfront, including who will pay for related legal costs and, later on, cost overruns, and how disputes will be resolved should a venture falter. Pay close attention to the negotiation of returns on capital, percentage of ownership, division of profits and losses, and priority of returns.

6.         Negotiate for the long term: A critical step in finalizing the best possible equity capital deal is agreeing upon, and planning for, long-term possibilities. The strongest arrangements between a developer or owner and an institutional investment partner are accompanied by an understanding that potential future deals will be brought by each partner to the other on an ongoing basis. Ultimately, by establishing long-term partnerships, you will gain a significant advantage when future opportunities arise. You will already have an equity capital source in place, with only the final details to arrange.

A solid equity partnership that will deliver results for years to come is clearly achievable

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