Advocating for small & middle-market commercial property investors and developers for nearly 20 years.
Headquartered in Miami Beach with satellite offices across the globe, the Janover Ventures Capital Markets and Real Estate Advisory team has underwritten and originated billions of dollars in debt and equity transactions across the nation and every asset-class. Our executive team and partners have been managing, investing in, underwriting and originating multifamily, commercial and residential loans for well over 100 combined years. Our practice areas and depth of knowledge run deep and across multiple verticals. Take some time to study each of our primary capital markets practice areas. Email us at email@example.com to discuss any opportunities.
Agency - Multifamily
Agency is a broad market for multifamily capital. It deserves a lot of attention and an incredibly deep understanding of the space in order to be navigated effectively. There are a multitude of products between Fannie Mae and Freddie Mac; from DUS, to conventional, to SBL and back. Each program has its own strengths and weaknesses and although many stabilized multifamily deals may fit in both buckets, sometimes one is far better than the other for pricing, execution, leverage, a little i/o, or all of the above. It is important to work with a shop that understands the nuances of agency debt to help borrowers achieve tighter margins and improved execution.
Bank & Credit Unions
Although bank debt is often considered the debt of last-choice to some of the more institutionalized or experienced borrowers (because of shorter terms, amortizations and recourse provisions) they are still the go-to for other shops (both big and small alike) for lots of reasons. The reality is that they quite often offer the lowest cost-of-closing and (with some level of recourse) sometimes the lowest rates (relative to leverage). They also have a very important feature that lenders who securitize their debt don’t have — the ability reduce or even eliminate prepayment penalties. The reality though is that there are thousands of banks and credit unions making commercial mortgages, how do you choose the right one? You have to have the right commercial mortgage brokerage with the right relationships.
One of the most deeply misunderstood, and equally valuable products in our portfolio of offerings are the Federal Housing Association guaranteed multifamily loans. These are the most frequently overlooked loan programs for multifamily borrowers because of reputation for being long and arduous. Although FHA multifamily debt may take longer to originate and have some extra costs and exercises involved in the origination, they almost always offer the highest leverage, self-amortizing, non-recourse multifamily debt, quite literally, in the world. From HUD 221(d)(4) insured, non-recourse, apartment construction debt; fixed and fully amortizing for up to 40 years plus two years fixed, i/o during construction and, up to 85% of the capital stack; to traditional market-rate FHA 223(f) insured debt for the acquisition or recapitalization of existing multifamily property; to value-add, to healthcare and back. HUD offers the most comprehensive and valuable assortment of multifamily offerings in the country and demands an FHA multifamily expert to achieve proper timing, execution, education and pricing.
Not all CMBS loans are created equal, neither are the lenders. When it comes time to negotiate an assumption, to pick the right legal counsel or get the tightest spread… relationships and product-education matter deeply. Some CMBS lenders favor one product one month and the next month are pricing that same asset-class wider than everyone else. A finger on the pulse of the market is required to know, for example, where you can capture the most i/o and lightest third-party costs while still achieving maximum execution. How many CMBS lenders does your broker work with?
Small Loans & Non-Prime
Small loans are generally considered $1MM - $7MM and that is fairly easily addressable with agency, CMBS and bank money, but the market for loans under $1MM is deeply fractured and real estate investors, developers and entrepreneurs often have an incredibly difficult time procuring competitive financing. There actually happens to be a very large addressable market out there for small loans as well as loans for borrowers that may not fall “down the fairway” as far as credit, income and other factors are concerned. We have spent a lot of time building a bucket just for those kinds of loans and now have a team in place dedicated to servicing this community of borrower exclusively.
Mezzanine Financing & Preferred Equity
Debt is often cheaper than equity, and non recourse debt is meaningfully cheaper than recourse debt as far as risk-profiling is concerned (yet more expensive when addressing interest rates directly). It’s important to measure and compare options when choosing between layering more debt or equity on top of your senior loan. Furthermore it’s important to understand how to structure pledging shares vs taking liens and negotiating inter-creditor agreements for terms that are amicable to all three sides of the table… then comes pricing and execution. When it comes time to manage the top of your capital stack; (1) make sure you have a strong foundation at the senior level and (2) make sure you have a strong team advising on the top of the stack.
Life Insurance Companies
For high quality assets in strong markets, the best pricing in the business is from life insurance companies. Although they generally require lower leverage and shorter amortizations they will almost always deliver the lowest spreads in the business by a meaningful amount for stabilized assets. Many life companies like Met Life and NY Life also play in the equity space and can often build an entire capital stack on the right development deals. Building life company relationships and learning their products can take decades and our team has the decades of experience to introduce, arrange and execute the right deals with the right life insurance company lenders.
Bridge & Structured Finance
Bridge doesn’t have to be expensive and isn’t always cheap. There are hundreds of variables that go into pricing structured debt. Sometimes with the right capital you can achieve tighter pricing than traditional permanent capital. For loans over $20MM, dry powder abounds and for smaller loans (even as little as $50k) the money is there too for the right deals. Leverage is available up to 75-80% of the capital stack including capex and that’s before layering mezz or preferred equity on top. Rates float starting at L+200, but every deal is different and some price at L+1,200. It’s important to be aware that not just “private money” lenders put out bridge debt but the best bridge debt is on agency and CMBS lender balance sheets as well as hedge funds, life companies and mortgage REITS.
SBA 7a and 504 lenders leverage the small business administration’s loan guarantee program to provide owner occupied business loans at higher leverage that almost any other category of lender. You can expect to get up to 90% of your purchase price and then finance things like working capital or new machinery. SBA financing is sometimes a perfect fit and sometimes too covered in red tape, expenses, and recourse to make sense, but the only way to understand if their leverage and costs make sense for you relative to the rest of the market is to work with a team that understands the entirety of the SBA loan portfolio of offerings and the alternatives.
Construction is a field that requires an understanding of the entire geographical market as well as specialized know-how for construction of individual asset classes. Arranging construction debt becomes far more granular as sub-markets have their own occupancy trends, cap rates, absorption rates, concessions, and much more. Financial modeling for construction loans become even more nuanced when calculating IRRs based on various exits, stress-testing permanent debt, and creating an efficient capital stack. Everyone from FHA to life companies to banks play in the construction space in one capacity or another and when it comes to arranging construction debt the diversity of relationships is as important as the depth of them and the experience of the advisor running lead on the transaction.
LP, CoGp & Syndications
When it comes time to building the top of the capital stack, many developers and investors have to reach for new relationships in order to take their portfolio to the next level. It takes a sizable rolodex to get a job like this done and advisors with experience negotiating waterfalls, developer fees, promote structures, and more. Our practice is focused on single LPs from $8MM and up, and co-GPs for institutional borrowers on a case-by-case basis.
For more information on our capital markets products including our debt and equity advisors please email firstname.lastname@example.org.