Private Money Commercial Real Estate Finance Solutions

Transcription

1 Private Money Commercial Real Estate Finance Solutions Wilshire Boulevard Suite 1800 Los Angeles, CA (310) (310) fax 1

2 Introduction West Bay Capital, LLC ( West Bay ) is a private money lender that originates and acquires commercial real estate loans and commercial mortgage-backed securities throughout the United States. Our focus is the Western U.S., primarily California. Our knowledge, expertise and diverse experience in commercial real estate provide us with the necessary skill set to underwrite loans and evaluate collateral effectively and efficiently. We are structured internally to make quick decisions which allows us to be responsive to all parties of a commercial real estate finance transaction. Executive Team The three principal executives of West Bay are Edward Marek, William McBride and Michael Poyer. Collectively, they have over 60 years of real estate and finance experience and have completed over $2 billion dollars in real estate, mortgage, and securities transactions throughout their collective careers. Lending and Investment Platform West Bay provides financing and acquires mortgage debt instruments for commercial real estate under the following three platforms: LOAN ORIGINATIONS Acquisition and Refinance Bridge and Interim Rehabilitation and Renovation Stage-Funded Business Purpose Construction Opportunistic Situations Note Hypothecation Cash Out LOAN PARTICIPATIONS Provide a subordinate debt position within a seniorsubordinate debt structure with a financial institution or other primary lender Participation with another lender on a pari-passu basis Joint Venture with participating debt and/or equity Individual loans or portfolios LOAN ACQUISITIONS Existing whole loans and portfolios Subordinate debt of whole loans or portfolios Performing debt but will consider some nonperforming loans or portfolios Seller carry-back financing Commercial Mortgage-Backed Securities (CMBS) Loan Originations Loan Participations Loan Acquisitions

3 Lending Criteria Loan Amount: Lien Position: $100,000 - $25 million + Primarily 1 st or 2 nd Deeds of Trust or Mortgages Other junior lien positions considered on a case-bycase basis Loan-To-Value: Loan Terms: Up to 70% (combined LTV) 6 months - 5 years Shorter or longer terms are available on a case-by-case basis Property Type: Multi-Family, 5 or more units Retail Office Industrial Medical Mixed-Use Hotel/Motel Mobile Home Parks Gas stations and convenience stores Automotive Self-Storage Facilities Assisted Living and other senior care properties Special Purpose Land Hypothecated Notes Lending Territory: United States, typically in the Western U.S. Primarily in California Interest Rate: 10 15% Origination Fee: Typically 1 5 points Underwriting Criteria Collateral property is primary consideration Borrower resume and financial capacity Other compensating factors considered

4 West Bay vs. Traditional Lenders Timing, credit issues, regulatory restrictions, property characteristics, and unfortunate circumstances can prevent borrowers from obtaining traditional financing. As a result, borrowers are sometimes forced to seek alternative financing solutions from lending sources other than banks and financial institutions. West Bay is a niche lender in the commercial real estate marketplace which is uniquely positioned to provide financing solutions for certain loan requests which are unable to be secured through traditional financing vehicles. Some examples are outlined below: A borrower may need to close a loan quickly to take advantage of an immediate business or real estate opportunity. The opportunity is far more profitable than the high interest rate charged on the loan. A bank or other financial institution may offer lower rates, but securing the loan may take too long in order to take advantage of the opportunity. In such circumstances, West Bay can expedite the financing process because its structure is more flexible and responsive than traditional lenders. A borrower may have a credit problem which prevents a bank or lending institution from making the loan due to its strict credit policies and regulations, regardless of the value of the property. West Bay, after checking thoroughly to verify that the borrower has the capacity to make payments on the loan, may determine, despite the borrower s credit issues, that the equity in the property and the borrower s ability to make payments make the loan a sound investment. Banks and other financial institutions often have restrictions on the use of borrowed funds (e.g. no cash out loans or restrictions on use for investment in other properties). West Bay has no such restrictions. A borrower s property and financial position may not meet the specific profile needed by a bank or other financial institution for sale of the loan in the secondary market. Therefore, the bank or other financial institution will not be able to facilitate the loan request. West Bay s loans are portfolio loans and are not subject to secondary market requirements. A borrower may have an existing loan on the property and a bank will not issue a second mortgage regardless of the remaining equity in the property. In certain cases, when there is enough equity in the property to provide sufficient security, West Bay may provide a junior position loan. A bank or other financial institution may have difficulty in evaluating a non-traditional property and therefore decline the loan request. West Bay utilizes years of experience in evaluating commercial real estate and can more readily make underwriting decisions on property criteria. The borrower may have a thriving business that has specific or technical financial risks, such as a high ratio of accounts receivable, which may disqualify the borrower from receiving a bank loan. West Bay considers compensating factors and other attributes of a loan request that mitigate against these risks. West Bay provides a variety of loan programs with creative and innovative structures which most banks and other financial institutions are unable to provide due to underwriting guidelines or regulatory restrictions.

5 The West Bay Difference OUR OBJECTIVE West Bay strives to provide creative commercial real estate solutions to the real estate and finance marketplace. Our goal is provide a quick and accurate response to any loan request and to fund loans that meet our lending criteria in a prompt, professional, and efficient manner. OUR ADVANTAGES Experienced management team over 60 years of combined experience Reliable and competent origination, processing, and underwriting team 15 year track record of private money lending as both a broker and a direct lender Decision makers are owners, brokers, and managers of commercial real estate Flexible structures and creative solutions for difficult loans 2 nd and junior lien positions permitted Will loan on a wide variety of property types Loan Submissions LOAN SUBMISSIONS West Bay accepts preliminary loan submissions which include the following information: 1. Property Summary 2. Borrower Summary 3. Loan Request and Financial Summary Please see the Loan Submission Checklist on the following page for details. A sample Loan Submission Package is available upon request. Loan submissions and inquiries should be made to: Michael Poyer West Bay Capital / Capital Lending Resources* Wilshire Boulevard, Suite 1800 Los Angeles, California (310) x242 [email protected] * Capital Lending Resources (CLR) is an affiliate of West Bay Capital, LLC (WBC) and assists in the origination and underwriting process of loans submitted to WBC. CLR is licensed by the Department of Corporations and the California Department of Real Estate. (License # ).

6 Loan Submission Checklist A loan request submitted to West Bay should include the following information: PROPERTY SUMMARY Property Name Address of Property Location and Area Description Property Type and Description Property Purpose (Investment/Owner-User) Year Built Building Size # of Units Construction Type Land Size Parking Zoning Environmental Issues Engineering Issues Other Comments Rent Roll/Lease Summary Site Plan Location Map Aerial Photograph Property Photographs BORROWER SUMMARY Name of Borrower Borrower Entity Type Borrower Resume Borrower Financial Capacity Name of Guarantor Guarantor Entity Type Guarantor Resume Guarantor Financial Capacity Other Comments LOAN REQUEST AND FINANCIAL SUMMARY Amount of Loan Loan Purpose/Use of Funds Loan Type (Fixed or Variable) Loan Term Interest Rate Interest Only/Amortization Lien Position (1 st, 2 nd, or?) Annual Gross Operating Income Annual Expenses Annual Net Operating Income Debt Coverage Ratio (DCR) Approximate Property Value/Purchase Price Capitalization Rate Loan-to-Value (LTV) Combined Loan-To-Value, if junior lien (CLTV) Estimated Closing Date Other Comments Narrative Summary: A brief but succinct summary of the loan request highlighting the pertinent and salient attributes of the property, borrower, and loan request. The narrative tells the loan story and describes all relevant issues (positive and negative) such as timing requirements, specific needs or requests of the borrower, unusual circumstances and opportunities, existing and/or potential problems, etc,. The narrative should also provide a concluding statement giving justification for making the loan, including the mitigating factors for any problems or negative issues.

7 Notes

8 For more information please contact: Michael Poyer (310) x Wilshire Boulevard, Suite 1800 Los Angeles, CA (310) (310) fax