Structured Financing

Structured Financing

Rafkin Lending

Rafkin Lending provides customized solutions to borrowers and operating partners. To that end, we make non-recourse first lien loans, mezzanine loans, or preferred equity investments on properties located in major markets throughout the US, with a preference for properties in Texas. Our investments range in size from $2MM to $20MM, and we make investments in industrial, office, retail, apartments, and commercial land:

First Lien Loans Mezzanine Loans Preferred Equity
Collateral First Lien on Realty Subordinate lien on Realty or Security Interest in Owner N/A
Personal Recourse Non-Recourse, except for “Bad Acts” carve-outs Non-Recourse, except for “Bad Acts” carve-outs N/A
Term 1 – 3 Years 1 – 3 Years 1 – 5 Years
LTV Up to 70% Up to 85% Up to 90%
Coupon/Preferred Return 8% – 12% 10% – 14% 9%
Fee to Rafkin Lending 2% origination 2% origination To be determined
% of Equity None To be determined To be determined
Prepayment Open, with minimum of 1 year interest Open, with minimum of 1 year interest Repaid with a capital event

First Lien Loans

  • Collateral
  • First Lien on Realty
  • Personal Recourse
  • Non-Recourse, except for “Bad Acts” carve-outs
  • Term
  • 1 – 3 Years
  • LTV
  • Up to 70%
  • Coupon / Preferred Return
  • 8% – 12%
  • Fee to Rafkin Lending
  • 2% origination
  • % of Equity
  • None
  • Prepayment
  • Open, with minimum of 1 year interest

Mezzanine Loans

  • Collateral
  • Subordinate lien on Realty or Security Interest in Owner
  • Personal Recourse
  • Non-Recourse, except for “Bad Acts” carve-outs
  • Term
  • 1 – 3 Years
  • LTV
  • Up to 85%
  • Coupon / Preferred Return
  • 10% – 14%
  • Fee to Rafkin Lending
  • 2% origination
  • % of Equity
  • To be determined
  • Prepayment
  • Open, with minimum of 1 year interest

Preferred Equity

  • Collateral
  • N/A
  • Personal Recourse
  • N/A
  • Term
  • 1 – 5 Years
  • LTV
  • Up to 90%
  • Coupon / Preferred Return
  • 9%
  • Fee to Rafkin Lending
  • To be determined
  • % of Equity
  • To be determined
  • Prepayment
  • Repaid with a capital event