The Real Estate Finance Group combines extensive structured finance and capital markets expertise with fundamental real estate skills to provide creative financing solutions for a diverse range of borrowers in the high leverage and mezzanine marketplace.
We welcome the opportunity to structure permanent, construction and bridge mezzanine financing with an emphasis on quality sponsorship and strong project fundamentals. We seek opportunities with borrowers who will benefit from our ability to resolve financing needs quickly and creatively. Our mezzanine investment clients include institutional lenders and private investment funds, providing us with greater flexibility to offer a financing package that will work for each particular project.
Program Highlights
- Experienced and Well-Regarded Developers and Sponsors
We seek to develop relationships with local, regional and national developers/sponsors with good track records who have sound long-term business plans and viable near-term exit strategies.
- High Quality Projects
We target strong assets in good markets with clearly identifiable patterns of revenue growth. We will consider a blend of build-to-suit and construction financing. We will also consider sub-performing and non-performing assets if the borrower has achievable repositioning and exit strategies.
- Good Balance between Current Return and Total Return
We are often able to accommodate borrowers and projects with cash flow constraints by employing structures that combine current return, fee income and equity participation components.
- Presence of Real Equity
We favor opportunities with appropriate sponsor equity investment.
- Ability to Provide Project Financing
We have the capacity and expertise to manage the entire financing transaction. This includes the structuring, syndication and servicing of A/B and other senior/subordinate financing vehicles. Babson Capital offers one stop shopping for both mezzanine and senior financing.
- Higher Leverage Financing Available
We offer higher leverage financing to borrowers seeking to maximize their equity utilization. Participation in these investment opportunities is offered to our clients who seek higher risk adjusted returns.