What Capital Sources Want

We recently solicited financing for a “distressed” multi-family acquisition, and here share a few salient points about what capital sources are demanding in the new-paradigm for debt and equity. The deal was much like the hundreds of other financings we’ve struggled (and often failed) to consummate over the past two years.

However, it had all the right characteristics – great sponsorship, solid real estate in a rebounding rental market, and a distressed trade at a significant discount to replacement cost. Therefore financing was isolated as the primary hurdle to closing, and our pursuit revealed interesting points about capital market idiosyncrasies – this month. Ultimately, we are encouraged that, (provided the last 4-5 months of relative stability persist), we’re increasingly able to predict attitudes and locate able sources; sooner than later that will translate into closings.

Liquidity Exists