Download PDF: Commercial Mortgage Lending - Structured Debt
Principal Real Estate Investors' Structured Debt programs offer competitive debt options, tailored to meet the needs of your clients. With multiple sources, our product mix of mezzanine debt, light bridge debt, B-notes, preferred equity, and full-leveraged debt stack options provide a variety of financing vehicles to provide solutions for your clients.
The Principal Real Estate Investors Advantage
- Experience: Principal Real Estate Investors has invested over $2.5 billion in subordinate debt/bridge since 2010. We have negotiated Intercreditor Agreements and closed loans with 27 senior lenders.
- Flexibility: Principal Real Estate Investors offers competitive options tailored to meet borrowers' specific needs. Our products cover a broad risk spectrum with rates in the 6-10% range.
- Process: Principal Real Estate Investors applies our life company approach to our execution. For mezzanine loans, we can work behind the scenes through a senior lender or directly with a sponsor to ensure the most efficient process and minimize concern of having two lenders.
- Consistency: Your local underwriting contact runs the deal in conjunction with the Principal Real Estate Investors High Yield team.
- Borrower Friendly: The borrower community will view Principal Real Estate Investors as a Lender, not a predatory investor.
- Servicing: Principal Real Estate Investors services our services our subordinate debt and bridge loans internally with the same experienced group that runs our mortgage servicing.
High Leverage Subordinate Debt
- LTV: Up to 85%
- DY: 6%+ targeted DY
- Loan Sizes: $10 - 100 million
- Terms: 2-10 years
- Pricing: Floating rate L+700-950 bps/Fixed rate 7-10%
Conservative Subordinate Debt
- LTV: Up to 70% +/-
- DY: 8-12% +/-
- Loan Sizes: $10 - 75 million
- Terms: 2-10 years
- Pricing: Floating rate L+500-700 bps/Fixed rate 5.25-7%
Full Debt Stack/Light Bridge Debt
- LTV: Up to 80%
- DY: Deal specific - pricing driven by NCF
- Loan Sizes: $20 - 75 million
- Terms: 2-5 years
- Pricing: Floating rate L+300-400 bps plus origination and exit fees (where applicable)
- Prepay: Typically call protection for 1/2 of the loan term