Developers

  • Providing Equity to Commercial Real Estate Developers for Up to 100% of Total Development Costs
  • Nationwide Platform
  • Superior Creative Cost-Effective Capital Solutions
  • Surety of Execution
  • Investment Sizes
    • $250,000 to over $50,000,000 for individual property transactions
    • Over $100,000,000 for portfolios
  • Primary Focus - Single-Tenant Net-Lease ("STNL") Properties
  • Significant Capital Available for Multifamily, Student Housing, Senior Housing, Multi-Tenant Retail, Self-Storage and Distribution Facilities

Equity Capital Structures

  • eCAP can provide up to 100% of total development costs (“TDC”) through industry typical mezzanine debt and/or preferred equity structures.
  • Rates and terms are market-driven based upon deal specifics and typically include a fixed interest rate plus transaction fees and expenses without eCAP participating in the developer’s profits.
  • For larger equity requirements ($5,000,000-$50,000,000) or more complex transactions, eCAP can provide up to 90% of the equity required for the development of income properties – including single-tenant net-lease (“STNL”) properties, apartments, senior housing, student housing and multi-tenant retail.
  • Deal structures typically involve a preferred return to eCAP plus a participation in the profits of the deal at sale.
  • For single-tenant net-lease (“STNL”) development, eCAP can provide 100% of total development cost (“TDC”) funding for solid credit-rated tenants and up to 100% of TDC funding for unrated corporate tenants and/or strong franchisees on a case-by-case basis.
  • eCAP’s capital is structured as a loan to the developer, who provides personal and/or corporate guarantees for (typically) the full amount of eCAP’s investment.
  • eCAP’s investment is not secured by a first lien/mortgage on the property.
  • At land closing, the developer is reimbursed for their pursuit and predevelopment costs expended to date.
  • eCAP will fund a portion of the developer fee during the development process.
  • Rates and terms are determined based upon the creditworthiness and market demand for the tenant, the developer’s experience, etc.
  • eCAP can provide a non-recourse debt/loan capital solution for up to 90% of total development costs (“TDC”).
  • The interest rate to the developer will be comparable to a blended rate between a conventional bank construction loan and market rate mezzanine debt.
  • For developers of single-tenant net-lease (“STNL”) properties, eCAP can provide developers with 100% of total development cost (“TDC”) financing through a “Forward Purchase Contract” that is funded in phases throughout the development process.
  • Prior to land closing, eCAP and the developer agree to a purchase price for eCAP to buy the property.
  • By preselling the property to eCAP, the developer locks in their profit while eliminating construction loan liability along with interest rate and market/sales risk inherent in typical development deals.
  • eCAP closes on the land in their name and funds construction draws just as a regular construction lender would – without the developer having a liability on their balance sheet.
  • The developer is reimbursed their pursuit and predevelopment costs at land closing and paid a portion of their agreed-upon development fee during construction.
  • Upon Certificate of Occupancy and occupancy by the tenant, eCAP reconciles any remaining amounts due the developer from the agreed upon purchase price.
  • eCAP can custom structure financing solutions including revolving credit/equity facilities, bridge financing and A/B-structures.