DALLAS—Because traditional financing is limited for construction projects, one company is looking to increase project funding with an investment offering. Dallas-based HALL Structured Finance II LLC has opened a Reg. A debenture offering. The company is seeking to raise $50 million in investments in order to expand its lending capacity to meet the growing demand for construction financing.
“In today's lending climate, it is very difficult for borrowers to obtain construction financing through traditional banks. In light of this, HSF has stepped in to fill this void and make it possible for high-quality developments across the US to move forward,” said Craig Hall, founder and chairman of HALL Group, HALL Structured Finance's parent company. “Our hope is that through this public offering, we are able to expand HSF's footprint into more diverse asset types, such as office and multifamily, and continue to make more loans each year to strong projects that would otherwise not be possible.”
HALL is offering a debenture with a maturity date of December 31, 2022, bearing an interest rate of 8% paid quarterly. Investments can be made directly or through an IRA account, and the offering is backed by the full faith and credit of HALL Structured Finance, which has been actively lending to the real estate industry since 1995. The minimum investment threshold is $20,000 and investors will have the ability to increase in $5,000 increments. The company earnings and cash flow are currently very strong enough to confidently pay the 8% return per year to investors.
Most recently, HALL Structured Finance primarily financed hotel developments in the United States. HALL closed approximately $300 million in construction loans in 2017 and expects to close more than $500 million in 2018. The company expects to see more diversity in asset type during the course of 2018, as traditional capital sources continue to shrink construction lending practices.
“The growth that we're seeing in our deal pipeline has become increasingly diverse. Whereas last year we closed 10 hotel loans and one multifamily loan, this year we anticipate significant growth in deal volume and financing a more varied group of asset types,” Matt Mitchell, senior vice president of HALL Structured Finance tells GlobeSt.com. “This debenture offering will give us additional capacity to respond to a broader range of high-quality projects as we continue to provide alternative financing options to developers across the US.”
HALL Structured Finance II LLC has been a direct private lender since 1995, oriented to be a resource to projects that may be underserved by the institutional capital markets. Its lending program is designed to provide real estate owners, operators and developers with an alternative to bank financing.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
