Structure Type - Equity-Joint venture structure utilizing third-party debt. Typically Peak Financial Partners, Inc. invests up to 90% of equity capital (may also be a combination of equity & debt).  Peak Financial Partners, Inc. and strategic alliances, placeable debt considered in select cases.

Property Type - All product types for opportunity buys, value creation (rehabs) and yield plays. Prefer apartments, office, grocery anchored retail and industrial for new construction (in very selective growth markets). 50% +/- pre-leasing required for new retail construction. Other properties on a case-by-case basis.

• Office or Mini Self-Storage: Located in in-fill or prime suburban locations. No Development.
• Retail: Centers anchored by neighborhood grocery/drug stores or big box with credit tenants preferred.
• Industrial: Multi-tenant bulk-warehouse and distribution parks, office/showroom and R&D properties.
• Multifamily: Garden-style built with traditional amenities.
   

Amount - $3 million to $50 million+ per property. $75 million+ in combined debt and equity. Over $100 million available for special strategic alliances.

Capital Structure - Typically Peak Financial Partners, Inc. invests 70% - 95% of equity capital with 70% - 80% LTV debt. Structures available such that partner's share in upside (residual) can be increased to an amount greater than its initial capital (i.e. partner's "promote") based on partners added value to deal.

Guarantees/Recourse - Personal guarantees may be required for construction loan portion. Bonding required for construction period. Typical carve-outs for permanent debt financing.

Exit Fees - Fee based on a 'look-back' at exit to yield a 14-25% annualized IRR (not including interest), results in a 40%-60% partner split in the project cash flow. Length of investment and available cash flow at exit determines final profit split. Exit strategy to be pre-determined on each case.

Fee - Typically 2 to 3 points depending on transaction size. Par Pricing available under some circumstances.

Operations - Partner handles day-to-day operating decisions and property management. Major decisions by both partner and Peak Financial Partners, Inc.. Acquisitions are made on behalf of Peak Financial Partners, Inc. or its affiliates.

Preferred Returns - 9% - 12% on all equity invested.

Pricing - Very flexible. Preferred returns, size of promotion needed for IRR look-back, equity return preference, and other deal items vary depending upon transaction risks and amount of partner equity.

Processing - The underwriter may quote within 5 business days of receipt of all primary property data and can generally issue final loan commitment and close within 30-90 days.

Term - Typically 1-5 year holding period. Prefer 1-3 year hold. 3-5 year hold on Yield Plays/Preferred Equity.

Third Party Reports - An appraisal, engineering, environmental and a feasibility study will be required. The underwriters may require additional reports as well. The quality of the developer and the project is critical to the program.



Notice - The information furnished to you here is preliminary. This is not an offer or a commitment. Rates, terms and conditions may be changed without notice. All transactions are subject to submission of a formal application, underwriting and written approval. Approved terms may vary.