Subordinate Financing

Subordinate Debt & Preferred Equity

Tachys Capital approaches each transaction with a fresh perspective, structuring capital solutions that are appropriate to the risk while giving our sponsors the best opportunity to execute their business plan. Our flexible, non-regulated platform allows us to move quickly and creatively across the capital stack — from senior bridge loans to mezzanine debt and preferred equity — customized to fit the specific needs of every deal and every borrower.

Investment Parameters

Investment Structure
Mezzanine loan, preferred equity
Loan Amount
$2 mil to $15 mil +
Property Type

All major asset classes

LTC / LTV
Up to 85% / 75%
Rates
Starting at 12-18% (Commensurate with deal profile)
Geographic Focus
Nationwide
Sponsorship
Strong team, track record, strong liquidity/net worth
Closing Timeline
15 to 45 days from from Term Sheet Execution
Prepayment
Limited to none; minimum 12 months interest guarantee
Term
6- 60 months with options for extensions
Collateral
Deal specific; UCC-1, pledge of ownership interests, assignment of interest, indemnity agreements, intercreditor/recognition agreement with senior lender, removal and replacement rights
Reserves & Holdbacks
Property taxes, insurance, debt service, capital expenditures, leasing commissions and tenant improvements, to the extent not reserved by the senior lender.
Origination & Exit Fees
Origination: starting at 1.0% Exit: determined on a case-by-case basis
Recourse
Recourse and non-recourse options available