This is an insurance company that offers both senior loans and common equity.
- Location: HQ in Hartford, CT
- Markets: Primary and secondary markets nationwide. Generally not interested in LA, SF, Seattle, NY, and Chicago.
- Equity:
- Structure: Common equity. Not offering preferred equity.
- Check Sizes: $20M to $50M
- Co-invest: Typically 90/10 or 80/20
- Asset Types: MF, BTR, or industrial
- Deal Types: Ground-up or value-add
- Sponsors: Strong regional or national developers
- Returns: "Upper-teens" IRR, 1.6x multiple, and an untrended ROC that's 125-150 bps wide of market cap rates.
- Notes: They have a preference for urban-suburban locations with more affordable rents.
- Debt:
- Asset Types: Industrial, MF, BTR, grocery-anchored retail, self-storage. Not interested in office, student, hospitality, or senior housing. Last year, 64% of their volume was industrial.
- Deal Types: Construction, light lease-up, and stabilized.
- Loan Sizes: $25M to $75M for a single asset. Larger for portfolios.
- Leverage: 60-65% LTC for construction, lease-up typically sized to high 7s to 8% in-place DY, and stabilized is ~55% LTV.
- Pricing: Construction is around SOFR+3.00%. Bridge has been SOFR + "high 100s to low 200s" or 1.60% to 1.80% over the 3-year UST. Permanent financing is generally 1.40% to 1.60% over the corresponding UST.
- Notes: They closed ~$2.1B on the debt side last year.
