Debt & Equity Financing
Axiom Capital Corporation has a unique relationship driven approach and we are committed to providing our clients a wide continuum of creative, value added, debt and equity financing and investment solutions.
We offer financing alternatives for all commercial property types nationwide including:
- Medical Office
We have access to a broad network of capital sources through our deep rooted relationships with of some of the nation’s top Commercial Real Estate Lenders which include:
- Correspondent Lenders
- Life Insurance Companies
- Pension Funds
- Credit Unions
- Hedge Funds
- Investment Banks
- High Net Worth Individuals
Debt & Equity Financing Solutions
We provide a wide array of debt and equity financing solutions, of which the most frequently used are:
Short-term floating rate financing to provide “bridge or gap” financing for commercial properties that are being repositioned or are pending a permanent fixed rate financing. Typically, the loans are priced over LIBOR with a one to three year loan term.
A short-term, floating rate loan to provide construction financing for commercial buildings. Typically, loan terms are 12 to 36 months, priced over the LIBOR rate. The Lender typically disburses partial payment of funds (“Draws”) on a periodic basis as work is completed.
Construction to Permanent Loan
Long-term loan providing construction financing which then converts to a permanent loan to “takeout” the construction financing. The construction period is funded on a floating rate basis typically priced over LIBOR. Upon completion, the interest rate is fixed and priced over a five, seven, or ten year period with a coupon interest rate based over the corresponding US Treasury instrument.
Credit Tenant Lease Financing
Short or long-term loan provided to the borrower based upon the credit rating of the tenant occupying the property. Special considerations in the loan structure are granted based upon the risks associated with the credit worthiness of the tenant.
Capital source which provides all or a portion of the equity required to develop or acquire a property. The loan is typically priced to generate an internal rate of return commensurate with the risks associated with the equity.
Agencies (FHA/FNMA/Freddie Mac)
A permanent, non-recourse, fixed rate loan for multi-family properties. Terms range from five to 30 years and are priced over the corresponding US Treasury rate with a 30-year amortization schedule. Typically these transactions are more aggressively priced than a traditional lending source and are based upon a maximum loan-to-value ratio of 80%.
A commitment by an institutional lender to provide permanent, fixed rate financing on a future project. The “forward commitment” typically does not exceed 18 months into the future and is priced over the SWAP curve.
A short-term floating rate loan providing finance during the construction period of the property. The loan term typically does not exceed five years and is priced over LIBOR.
Short-term loan to provide the borrower the funds, or a portion of the funds, required to develop a property. The debt/equity is typically priced to generate an internal rate of return ranging between 12% and 25%, dependent upon the risks associated with the debt/equity position.
A loan provided behind the existing first mortgage. Total loan proceeds (first mortgage and mezzanine) typically do not exceed an 85% loan-to-value ratio. Some capital sources will exceed the 85% loan-to-value ratio, but will price this transaction based upon an equity return. The typical loan term is three years with two, one-year extension options, and a one-year lockout provision where the loan cannot be pre-paid. Longer term 10 year mezzanine financing is also available in the market. The interest rate may be fixed or floating and is typically priced over the LIBOR rate. Security is usually in the form of a second mortgage or the pledge of partnership interests.
Participating Debt Structure
A short or long-term loan whereby the lending institution, in addition to the traditional source of repayment, will participate in the cash flows generated from the property.
Acts as an acquisition financing or the refinancing of the existing mortgage or construction loan. Loan terms can be three, five, seven, or ten years, with some lenders offering up to 30 years. Financing can be at a fixed or floating rate, priced over various indexes (the corresponding US Treasury rate or swap rate), and is typically non-recourse to the borrower. There is usually a three year minimum lock-out period where the loan cannot be repaid.
Axiom’s Advisory Services
Envisioning the complete scope of our clients’ needs, Axiom provides advisory services that include:
- Due Diligence
- Closing & Post Closing Services
- Development, Acquisition and Construction Advisory
- Property Management
- Commercial Property Sales
- Structured Finance With Existing Lender
- Transaction Organization and Marketability
- Commercial Loan Servicing for Lenders