Case Study 2

The Scoop:

$3,000,000 Equity take out request for Developer to inject into future projects

The Challenge: Client only has sufficient equity in existing plaza to qualify for institutional lending rates on $1,300,000. Client is not interested in paying high rates or private funds.

Timeline: 90 days until funds are required for the next development

How Does SGE Financial help?

We consult with the client to identify any other assets in play to support a more creative structure. We advise on a non-typical structure to move the existing debt from the plaza to some raw land held in another holding company by our client. The land is not serviced and has no cash flows. SGE works with a combination of senior lenders and alternate lenders to provide a structure that fits their risk appetites. The plaza becomes debt-free and secured line of credit financing is established at an aggressive price. The client ends up with a $3,500,000 working capital line of credit at institutional rates within 60 days.

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