100% JV Financing for New Construction

— Phased-Funded Forward Purchases —

Overview: Looking for a few quality developers of single tenant or “easy to understand” multi-tenant projects. Our investor owns several billion dollars of projects with long term cash flows provided by high quality tenants and is seeking new, compelling investment opportunities.

Focus: If your existing lender relationships are still providing you with 80-85-90-95% financing… stop reading this. If you are looking for an investor that is laser focused on the quality of the tenant and the duration of the income stream that will be created… keep reading. We will overlook the bumps, bruises and battle scars you have endured since the meltdown of 2008 because we care more about your tenant than we care about you and your “Great Recession” baggage. If you are developing a project for a tenant we like… our investor will fund 100% of the total development budget.

What do we like?: Exclusively seeking projects that generate a long-term, high quality income stream from tenants that are considered “investment grade” by the rating agencies or unrated companies with especially strong financials and fundamentals (e.g. Dollar General, WaWa, etc.). Agnostic as to property type. Will entertain: retail, office, warehouse/industrial, R&D, medical, and renewable energy projects with power purchase agreements.

Investment Size: $10+ million for stand-alone projects. We can do smaller deal sizes that are part of cookie-cutter platforms to deliver same type project to same tenant over and over (e.g. 87 Dollar General stores at $800,000 average per location). 

Property Locations: Nationwide with large projects considered in select International markets

Sale / Leasebacks considered?: Yes, seeking off market opportunities not listings by major CRE brokerage shops.

Can I stay in the deal as a JV partner?: Yes, you can stay in the deal and share cash flow for the long term or get a buyout and move on down the road to your next deal. Bison can run the numbers both ways.

Process Overview:

  • Developer to share basic info with Bison (name / credit profile of tenant and basic economics such as length of primary term of the lease and the amount of the cash flow)
  • If acceptable to Bison…
  • Developer submits detailed due diligence package (executive summary, proof of site control, source and use of funds, development budget, project pro-forma, tenant approval letter, executed lease/LOI/PPA, etc.)
  • Investor and Developer agree on cap rate and purchase price for project
  • Investor and Developer enter into a Master Development Agreement outlining all terms, roles and responsibilities in the transaction
  • Investor closes on the subject land and reimburses Developer for all pursuit costs at closing
  • Developer submits monthly construction draw requests which are funded by Investor
  • Upon completion and rent commencement by Tenant, Investor makes final payment to Developer for any remaining amounts

Benefits to Developer:

  • This program is based on the credit worthiness of the tenant, not the developer !
  • Develop more properties for a more diverse group of tenants with the same capital base
  • Simplified structure with one investor serving what has traditionally been three roles (equity investor, construction financing and purchaser)
  • Stop trying to raise “country club equity” or “play nice” with a shrinking list of commercial banks willing to take construction risk and instead spend your time looking for tenants, building buildings or playing with your kids / grandkids
  • Make more money because you make typical Development Fees PLUS Developer’s Profit vs. straight “Fee Development” deal or “Cost Plus” deal
  • Cost savings for Developer
    • No traditional appraisal required
    • Since the Investor closes on the land, there is only one closing — saving disposition broker’s fees, attorney fees, transfer taxes, etc. on the second closing
    • No lender fees or interest due since this is a purchase
  • This is not a loan so there is not Unlimited Personal Recourse like a traditional bank construction loan

For more information please contact:

 

David Repka at 727-537-0330  – e-mail: dave@bisonfinancial.com
Jared Repka at 727-537-0208  -  e-mail: jared@bisonfinancial.com