Opportunistic Real Estate Investment
GenX Capital Partners and their equity fund partners target real estate investment debt and equity partnership opportunities that fall into the broad categories of value add opportunities and event driven/complex situations. We work only with seasoned sponsors who have a solid project backed by a compelling story and business plan that gives the handful of real estate private equity funds we work with the opportunity to create outsized returns with mitigated, reasonable risk attributes. Our "sweet spot" is in the $2MM to $50MM range with project types falling into the 5 core classes of assets along with vertical opportunities that have a solid portion of leasing in place or a well established flag attached. Our floor IRR range is 15-18% (if we are considering Pref Equity) with a targeted IRR on all other participation in the 20%+ range.
For bridge loans we can close in under 30 days with rates from 8-12% and a max LTV of 80%. These rates and LTV are some of the best in the industry. For construction loans we can get as high as 75% LTC.
Value Creation Opportunities. Many projects GenX Capital pursues to underwrite are expected to provide opportunities for immediate term increases in value through aggressive, proactive asset management from the sponsors. These opportunities may involve more focused management on marketing platforms, operating expenses, implementation of capital investment programs to reposition under-utilized assets and/or re-leasing vacant space as well as other initiatives to increase revenue, occupancy if need be, and stabilization. Additionally, in select instances and in certain geographic markets that benefit from strong supply/demand fundamentals, GenX Capital and/or its equity fund relationships may pursue off market, best-in-class development or re-development opportunities with sponsors that provide the potential for high returns with prudent levels of leverage.
Complex/Event Driven Situations. Complex/Event Driven situations often involve multiple aspects of real estate investing and offer attractive risk-adjusted returns due to inefficient pricing and/or event driven circumstances. These investments may include restructuring and/or recapitalizing dysfunctional partnerships, originating highly structured debt or preferred equity positions, or other situations that are unique and therefore difficult to evaluate.
Orlando based hotel group needed $9MM bridge loan to acquire an underperforming, flagged asset, and needed to close in under 30 days to meet the sellers aggressive time line. While they had rates and terms for a CMBS loan in place, the defeasance component of the loan made it tough economically and thus needed financing that allowed them the opportunity to close quickly, reposition the asset and implement their "value add" strategies while having the flexibility to refinance in 2-3 years at more favorable structure.
(TRAVEL WEEKLY write up on the transaction)
GenX Capital was able to underwrite a $9MM bridge loan with their REIT partner that was on par with CMBS, had only 2 years yield maintenance and zero points on the refinance at the end of the term. GenX Capital was able to close in 30 days, meeting both the sellers and sponsors aggressive time tables.
GenX Capital Partners and its equity/debt relationships actively see out development opportunities that are entitled, approved, "shovel ready", with seasoned sponsors and are ready to close. We have actively been committing development capital to residential sub-divisions, branded hotels, mixed use office/retail and multi-family. Capital deployment has come in the form of mezzanine, preferred, senior debt and bridge.
Acquisition/Repositioning: While we have shown to have the ability to bring in $200MM+ to a single deal, we actively pursue debt, equity (JV, Pref) and mezzanine opportunities in the $3MM to $50MM range in the 5 core classes of assets.
With less than 10 days to go until closing on their 209 unit, multifamily acquisition, our client learned at the last minute that their equity partner wouldn’t be there after all, leaving their $250K deposit at risk and potentially losing the entire deal. The client (a large, regional Multifamily owner & operator) approached GenX Capital Partners to see if we could save the project and get the $1.75MM they needed to close, in under 10 days no less. The client not only needed the funds in that time frame, but needed confirmation they were coming at least 3 days before the close date in order to rate lock with Fannie Mae, only adding to the pressure.
(MIAMI HERALD article, click here)
The client had an impeccable reputation in the multifamily sector so we were confident we could pull this off. Particularly with our extensive depth of high net worth investors and strategic partner equity funds that we know were liquid and could move quick. Fortunately one of our funds in California liked the deal and the IRR potential, was able to move quick, and within a 1 week time frame we closed from start to finish without a day to spare.
For fastest response, send your OM or Executive Summary to email Mark@GenXCP.com with a brief description in the body of the email. We will review and get back to you within 24-48 hours with any questions