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Typically $5,000,000 to $20,000,000
MCG to achieve a Minimum IRR which is a combination of Loan fees, Exit Fees and Interest charged on the Loan.
up to 5% of the Loan Amount depending on deal size.
1% to 2% of the then outstanding balance of the loan
Quarterly interest payable on the principal balance of the Loan, ranging up to 16% depending on IRR calculation.
For Home Construction Loans: Exit Fees due upon the sale of homes beginning at 3% of the Gross Sales Price of the Home for the first one to two years and increasing every six months thereafter.
Interest accruing on the principal balance of the Loan up to 16%, due upon sale of the Land.
the Greater of 100% of the net home sales proceeds after payment to the Senior Lender or the Minimum Release Price, whichever is higher. Release prices typically ranges from 110-125% of the Mezzanine Loan Amount per home. Upon pay off of Mezzanine Loan, Exit fees will continue to be paid until all the homes are sold.
Interest payments are due monthly, with the first 6 to 18 months funded and retained by Mezzanine Lender in an Interest Reserve Account with interest accruing to the benefit of the Borrower.
A 2nd Trust Deed on the Property, a third party Guarantee for 100% of Principal and Interest and a Pledge of Borrower Ownership Interest.
Mountain Capital Group has provided equity for the following residential subdivisions delineated by location:
Number Equity in Number
of Projects Millions of Units
Texas, Las Vegas and Colorado 6 $ 23,000,000 1,243
Northern California 11 $ 38,000,000 1,449
Southern California 26 $127,000,000 4,370
43 $188,000,000 7,062
In addition, MCG has provided equity for apartment and retail center acquisitions.
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