As a supplement to leverage on commercial real estate transactions, Phillips Realty Capital offers a full range of Equity Placement Services, including the following:
Phillips represents sources interested in the acquisition of commercial real estate throughout the Washington DC metropolitan region. These sources seek to acquire well-located office, retail and industrial properties. Generally speaking, properties acquired are held for a long-term, with a minimum strategy of six years.
Transactions size ranges from $5 million to $50 million. Equity interests require a 100% position, however, lesser positions will be considered depending on the transaction.
Supporting first trust financing, certain Phillips equity sources are available to provide mezzanine or “second-tier” financing. These equity sources require a preferred coupon rate of interest, commensurate with the transactional risk, as well as an “equity kicker”. When permitted by the first trust, a recorded second trust portion is required.
Transaction size for Mezzanine equity ranges from $5 million to $25 million.
Phillips Realty Capital equity sources are also available to support the commercial real estate developer in the development of well located commercial properties. These equity sources require a preferred coupon rate of interest, commensurate with the transactional risk, along with a substantial ownership portion in the venture.
Projects must have a well-defined short term disposition strategy, generally less than a year after completion, that yields a minimum return to the investors of 25%.
Transaction size for Pre-Development equity ranges from $5 million to $25 million.