National’s real estate investment program does not fit into a box. The expertise and experience of our staff allows us to optimally structure each individual opportunity. As a result, every investment we make is distinctive and truly progressive, making use of new ideas to meet financing needs. The structures described below are just a starting point from which creative financial structures evolve to best suit our investors, our partners, borrowers, and projects.

Financing Structures

Joint Venture Equity

• Leveraged capital structure
• Co-investment with development partner
• Up to 90% of required equity
• Partner promote after IRR hurdle achieved
• May be structured with preferred return
• Will consider limited construction recourse
• Intermediate to long-term hold period

Mezzanine Debt

• Preferred structure for condominium investment
• Mezzanine interest accrued and paid upon sell-out
• Up to 95% of required capital
• “First in, last out” capital contribution

Credit Enhancement

• Investment-grade (Moody’s: A3) credit enhancement may be available from NEBF
• NEBF-issued Letter of Credit
• NEBF wrap of bank-issued Letter of Credit
• NEBF Partial Conventional Loan Repayment Guaranty
• Maybe structured in conjunction with project bond financing
• May be structured in conjunction with derivative instruments

Construction Debt

• Competitive leverage levels
• Competitive interest rates
• Flexible loan maturities
• Varying recourse requirements
• Streamlined documentation and closing
• In-house loan servicing

Permanent Debt

• Competitive leverage levels
• Competitive interest rates
• No maximum lending limit
• Flexible loan maturities
• Forward commitments available
• In-house loan servicing

Submission Guidelines

To be considered, investment submissions to National Real Estate Advisors should contain, at minimum, the basic information needed to underwrite the acquisition or development of the project on a preliminary basis. This should include at least the following information:

• Sponsorship – project sponsorship is perhaps the most critical element of investment consideration. Sponsorship information should include prior real estate investment and development experience and professional experience of key principals.
• Project Description – a general overview of the project including project size, location, development plan, preliminary architectural renderings and site plan.
• Proposed Investment Structure – the proposed capital requirements of the project (i.e., amount and terms of proposed joint venture equity, mezzanine debt, etc.), including projected third-party capital.
• Monthly Development Budget – if applicable, a monthly budget detailing land, hard cost and soft cost line items over the expected construction and lease-up or sell-out period.
• Monthly Pro Forma – a monthly projection of project income and expenses including a summary of assumptions used to create the pro forma. The timeframe of the pro forma should cover the life of the investment or 10 years.  An ARGUS file should be provided.
• Market Information – a brief description of the applicable market conditions and the project’s profile relative to that market.