Asset Types: All except hospitality and unentitled land. Open to older vintage assets.
Notes: Conversant Capital made a strategic investment in AXCS in 2024 and is providing the capital for buckets 1 and 2.
Bucket 1 (Co-GP)
Check sizes: $2M to $7M
Returns: Looking to earn a 2x multiple
Notes: Targeted for GPs that need more capital to complete a co-invest. They're looking for deals where the rest of the capital stack is already accounted for and they're filling the remaining missing piece. They will not sign loan guarantees.
Bucket 2 (Pref/Mezz)
Check sizes: $5M to $20M
Leverage: Typically getting to 85% leverage
Pricing: Mostly looking for rescue capital scenarios where they can charge a high-teens rate. For example, if someone needs to refinance an over-levered loan and wants to right-size the capital stack. Will consider a lower coupon in exchange for an upside equity participation.
Recent deals: Closed $8.5M of pref equity at 85% LTV behind a $41M CMBS loan for a 1980s MF property outside of Houston.
Bucket 3 (SMA for self-storage deals)
Structure: Preferred equity
Check sizes: $3M to $10M
Leverage: 80-85%
Pricing: 14-15%
Recent deals: Quoted a self-storage development deal with pref up to 80% LTC. They're open to distressed deals, e.g. a developer that has cost overruns or lease-up is going slow.
