Capital Solutions For Commercial Real Estate

 

Asset Classes: Multifamily, Retail, Office, Industrial & other opportunistic situations!

 

We offer capital solutions for the following:

• First Trust Deed Debt, Bridge Financing
• Mezzanine: Junior Mortgages & Participating Debt/Equity
• Equity: High Leverage Mezzanine, Preferred Equity
• Hard Money Lending: Bridge Loans, Distressed, Value-Added Opportunities
• Debtor-In-Possession Loans (DIP)
• Super Collateralized Loans (Super C) & Triage Loans

Debtor-In-Possession Financing - DIP Financing

DIP Financing is a form of financing granted to companies in financial distress typically during restructuring under corporate Chapter 11 Bankruptcy law. Debtors gets a fresh start subject to fulfillment of its obligation under its reorganization plan. The unique feature of DIP loan is that bankruptcy court usually grants a super-priority status to the new loan. This means that the new loan gets to jump in front of any mezzanine financing or any senior mortgages in the debt stack.

 

Capital Challenges = Opportunities of $1.4 Trillion of debts coming due in 5 years.

Capital markets had tightened in recents years and closed the doors to a lot of real estate opportunities.  Real estate investors who were to unable sell or refinance to recapture profitability. These same investors counted on their predetermined exit strategies but never realized due to changes in capital market condition which resulted in volumes of available distressed properties which in turn triggered a different set of opportunities for others who are well capitalized. 

Solving distressed situations is our specialty! Unconventional out of the box solutions is our entry in the recapitalization and transactional restructuring; for capital formation and repositioning of capital placement are the valued services we infuse in distressed mortgage opportunities which are mainly uncovered and underserved by larger financial institutions.

In today's stricter regulatory environment even regional community banks has tighter than ever underwriting rules for deploying capital. Prevailing requirements for capital funding disqualifies a majority of real estate assets and borrowers.

Services we provide are insightful creative solutions, flexible transactional structure and competitively cheaper cost on capital!
 

Expert solution to unconventional investment opportunites are:

• Providing Financing for Borrower Payoffs
• Acquiring Performing and Non-Performing Debt
• Originating New 1st Position
• Financing Debtors in Possession
• Financing Third-Party Debt and Asset Acquisitions
• Bank Recapitalizations

Types of investments:

• Senior 1st position
• Mezzanine
• Direct Equity
• Preferred Equity
• Discounted Mortgage Purchases
• Other Structures

Areas of financing provided are:

• Bridge Capital
• Recapitalizations
• Restructures
• Note Repurchases
• Special Situations

 

Prompt response to distressed opportunites and insightful advisory followed by strategic and timely execution of transaction is what you'll experience when working with us... If traditional banks restricts and rejects you, we will have a customized capital solutions for you!

 

Distressed Situations

Distressed transactions are complex, time-sensitive initiatives that often involve the potential for rapidly diminishing collateral value.  For businesses or properties that are under financial stress, it is important to understand that there is an inverse relationship between time and value; the more time a business/property remains under financial stress without a resolution, the faster the value will likely deteriorate and will likely result in fewer available restructuring options.

Through deep experience across capital market cycles, Megha Capital brings a strong business acumen to managing distressed situations. Delivering clarity to these complex problems, Megha Capital can provide support through its strategic advisory services, offering solutions for a wide range of distressed situations. The Megha Capital professionals are equipped to handle bankruptcy, defaults, restructurings and non-performing asset sales within and across real estate, Multi-Family, Retail, Offices and Industrial financial services industries.

 

Debt Restructuring

Rapid triage response for companies that are currently in default that need assistance negotiating a resolution with the existing lender(s), raising junior capital, or refinancing existing debt.

 

The Right Solution for Your Needs

Megha Capital can help turn a distressed situation into a sale, restructuring or capital infusion. Megha Capital analyzes options to facilitate the right solution for the situation whether it’s a Chapter 11 Bankruptcy Restructuring or a debt/equity transaction.  Megha Capital's experienced team can tackle:

Partnership Blow-Up

Sourcing Equity and/or Debt Capital

Restructuring

Chapter 11 Bankruptcy

 

Bridge Capital Deployment Overview
 

We’re a nationwide commercial real estate, private capital provider.  This particular product is short term 1-3 years commercial bridge-financing, interest only and no prepayment penalty loan. Large scale multi-unit Residential are considered on case by case basis.

Transactional turn around specialty for clients with time-sensitive deals is within 5-15 business days.

Solutions for the following scenarios:

·    Time is of the essence

·    1031 Exchanges

·    Ballooning Note

·    Flexible lockup / prepayment (2-6 months if necessary)

·    Working capital for businesses

·    Funds needed for another project

 
Deal Transaction Parameters:

·    Interest-Only Transactions

·    Interest Rates: 10%-14%

·    Amortization: Interest Only

·    Value: Up to 65% on income producing properties

·    Origination Fee: 2 - 3% taken at closing from transaction proceeds

·    Term: 1 year

·    Closing times: 7 - 10 days

·    Deal Size: $2,000,000 to $50,000,000+

 

For Quick Evaluation, Please Provide:

 

Contact: email jesse@meghacapital.com or call (512) 934-1177.