FINANCE SERVICES

Great Rivers is actively exploring the creation of asset management and financing vehicles. As part of this strategy, we are working with capital partners to provide bridge financing of up to 100% of the capital stack to deliver the asset. The exact capital stack structure will vary depending on the deal and measurement of risk. Financing may be in the form of bridge debt/equity, finance-to-own or finance-to-flip.

Bridge Financing would simply be structured as a combination of debt and equity, with the expected exit strategy to be either the sale of the property or refinance of the asset upon rent commencement by the tenant. Typically, the allocation would be 80% debt and 20% equity with pricing variable depending on the specific deal.

The Great Rivers Finance-to-Flip program will allow for 100% financing with the intention of Great Rivers or partners to list, market and sell the property on behalf of the developer. Although there would be no loan fee up front, the interest rate during construction will range from 6.0% to 8.0%, and the commission on sale will range from 4.0% to 6.0% of the sales price.

The Finance-to-Own program would simply be 100% financing with the intention of Great Rivers or partners placing the property into a portfolio of assets upon rent commencement. This would simply be structured with a 1.0% loan fee up front and the interest rate/cap rate priced anywhere from 50 to 75 basis points over the “market” cap rate.