| Transaction: |
Robertson Douglas Group |
| Property Type: |
Multi-Property Single-Family Development Portfolio |
| Structure: |
Preferred Equity Line of Credit |
| MF Investment: |
$8,550,000 |
| Date: |
Mar 2004; Investments to be made for up to 2 years |
| Borker: |
None |
| Senior Loan: |
Varies based on specific project |
| Description: |
Robertson Douglas Group is a growing homebuilding company in New Jersey that needed a dependable source of project equity in order to move to the next level of their business plan. After first underwriting the experience and ability of the company and its principals, Mountain Funding offered a preferred equity line for up to the next 5 projects to be undertaken by the developer, with MF providing the bulk of the required sponsor equity (subject to senior bank construction loans) in return for a fixed preferred return on each deal. In the competitive New Jersey market, this ready source of equity capital will enable RDG to grab opportunities as they arise and before they are mass marketed. In return for the benefits of a cross-collateralized pool of assets, MF was able to provide pre-negotiated terms on each new deal that were much less costly than typical profit participations.
|
