REAL ESTATE EQUITY CAPITAL - JOINT VENTURE CAPITAL PARTNER

 

 

 

 

 

We can provide prompt, senior level access to over 450 +/- major global investors of real estate equity capital that are based in the US, Europe, China and the Far East and the six countries of the Arabian Gulf (Saudi Arabia, UAE, Kuwait, Qatar, Bahrain, and Oman). These investors include sovereign wealth funds, private equity funds, pension funds, insurance companies, family offices, real estate investment funds, ultra-high net worth individuals and families, private banks, hedge funds, endowments, real estate companies and families, and potential strategic partners. Given the fact that the US economy is probably the best economy among the major developed nations, our overseas investors are increasing their allocations to US real estate to achieve their investment objectives while diversifying their investments outside their local regions.

 

Recent successes include:

 

 Putting together a package for a real estate developer/operating partner client which includes a real estate equity capital partner, a joint venture operating co-developer partner ( a world known real estate family), construction loan for a prospective 65 story iconic residential building, consisting of a  900,000 +/-  square foot residential building plus 100,000 square foot of retail, in Jersey City , 1-1/2 blocks from the NJ Transit subway stop. The approximate project cost is $425,000,000.

Currently there is a soaring amount of  US real estate investments being made by investors from the Arabian Gulf petro states, which we can help source for you.  

Our colleague/partner heading up our Arabian Gulf activities assisted in sourcing capital from a senior member of the Royal Family of Qatar for the acquisition of a five star hotel in Chicago.  He served as the CEO of an asset management company in partnership with Lehman Brothers Private Equity, cofounded and raised capital for an investment bank based in the Gulf as well as for a US private equity firm from two leading Arab Gulf financial institutions, and served as a legal advisor on over $5 billion of transactions with investors from the Arab Gulf.

He is a partner in a Park Avenue New York law firm and an advisor to a leading trust and wealth advisory company in the Channel Islands that is active in the Middle East. He practiced law in Saudi Arabia as the managing partner of a global law firm's Riyadh office, and has over 35 years of experience in the Arabian Gulf.

He has direct access at a senior level to most of the Arab Gulf institutional real estate investors active in the US  as well as ultra high net worth families and family offices (both royal and non-royal),  leading asset managers and private banks.  These investors include the sovereign wealth funds in Abu Dhabi, Kuwait, Qatar, and Bahrain, and  social insurance pension funds in that region.

He frequently travels there with clients from the US.

He has wide recognition as an expert on the Middle East, having appeared on CNN, Bloomberg TV,  and Reuters, and has been quoted in such publications as the Financial Times. He also served on the Board of Harvard University's Middle East Institute at the John F. Kennedy School of Government and on the Executive Committee and Board of Directors of the Arab Bankers Association.

 

The increase in investment activity from the Arabian Gulf is due to several factors: (1) continuing turmoil in the Middle East and the search for safe havens for capital; (2) the superior performance of the US economy vs. the UK and Europe; and (3) the decline in Middle East real estate values and performance due to low oil prices. According to Real Capital Analytics, Middle East investors were the third largest investors in US real estate in 2015 out of the total $60 billion in real estate investments by foreigners last year. One of the Gulf the sovereign wealth funds recently announced it is investing $35 billion in US real estate over the next 5 years

 

Arab Gulf investors are investing in second and third tier cities, as well as the gateway cities. Favored real estate sectors include multifamily rental, industrial and logistics, hospitality, and office sectors. Many Gulf investors are seeking cash flowing investments as well as development deals for the largest investors.

 

Our colleague heading the EB-5 financing division has also enjoyed success. She has worked on projects that raised over $1-1/2 billion capital via the EB-5 program.

Optimally, these US and global real estate equity capital sources will co-invest up to 95% of the equity required generally on a non-recourse basis. There is no upper dollar, project or geographic limit on projects they would consider.  Generally the equity pieces are between $5,000,000 and $50,000,000 per project.  A number of our equity sources have a minimum threshold of $100,000,000 and could go up to $500,000,000.

Our colleague heading the EB-5 financing division has also enjoyed success. She has worked on projects that raised over $1-1/2 billion capital via the EB-5 program.

What Our Investor Base is Looking for:

 

These real estate equity capital partners are looking for long term, strategic partnership relationships with high quality real estate development and operating partners. The real estate equity capital sources tend to stay with a successful real estate operating partner which makes future planning for real estate equity capital more certain.

These real estate equity capital sources consider all of the basic types of real estate projects, for example- office, retail, industrial, apartments, hospitality, mixed use, residential. These projects could be: value added, recapitalization, re-development, core holdings, repositions, and select development projects. Our investors invest in Gateway cities, as well as second and third tier cities with strong local economies

The types of rates of return that the real estate equity capital sources range from an emphasis on current income, to a combination of current income and/or capital gains.

Before accepting a client, we perform  a significant amount of pre-screening and look for various criteria that are important to real estate equity investors or joint venture real estate equity capital partners, such as:

 

1. The projects are backed by a substantial, high quality real estate development / operating partner.  2. The projects have sensible real estate valuations 3. The risk vs. reward profile is in line with potential real estate equity capital /joint venture partners expectations.   4. The significant offering and due diligence materials are in place and ready for review.

 

If, after comprehensive initial review of the project (s), we determine the feasibility of securing a real estate equity partner,  we would discuss the possibilities and the efforts necessary to move forward.

Our primary focus is on establishing long term, strategic, real estate equity capital partnerships for accomplished real estate development and operating partners  with leading United States and global real estate equity capital partners. After we are retained, we would proceed as efficiently as possible including the initial contact and continued follow up until a successful closing.

 

 

 

HOW TO SUBMIT A PROJECT TO US FOR REVIEW

BASIC PROJECT INFORMATION REQUIREMENTS
 

 

We perform a substantial, initial effort once we receive your project. The goal is to make the  process of review by a potential real estate equity capital investor, joint venture partner goes as smoothly and efficiently as possible from initial review to closing.  

 In order to evaluate and ultimately get your project financed, the following basic information is required. Please email it to us in confidence for an initial review.  The basic information is:  An executive summary of the project, description of the financing required, what the financing will be used for, an exit strategy to either retire the debt or take out the equity partners, photographs and other useful exhibits.  This should all be emailable if possible.

After review of materials and our being retained, we will formulate the optimum strategy that will obtain the real estate equity capital, mortgage or construction financing for your project with the best terms in the shortest possible time frame.

 

The best way to submit a project to us in confidence for review is by email.  Please include your contact information.  We will make a detailed, initial review,  possibly have a conference call, to discuss in a preliminary way, your capital needs and the project's viability.

 

You may email project specifics in confidence to Howard Jackson, email- author837@gmail.com 

 

 

CURRENT ASSIGNMENTS FOR 2018

1. A $90,000,000 real estate equity capital raise for a 500,000 +/- square foot, Class "A" office building located on Wall Street, New York City.

 

2. An equity raise of $65,000,000 for a core holding recapitalization of an approximate 1.9 million square feet of tenant occupied industrial buildings.

 

3. A real estate equity capital raise for a mid-level real estate development/operating partner to purchase a series of Class "A" multi-family apartment buildings in the secondary markets in the US.

 

4. The representation of a private equity firm for three projects: a construction loan for $30,000,000 for the first phase of a 6,000,000 square foot Tier 5 data center; a construction loan for a $400,000,000 hotel project including a residential, retail and convention component along with the procurement of a hotel management partner; an acquisition type loan for a $750,000,000 portfolio of health care, assisted living facilities including the procurement of a joint venture partner with extensive experience and holdings in this property class.

 

5. A $3 Billion total capital raise for an upscale hotel portfolio acquisition which will be re-branded into a unique brand located in upscale areas of the US, US Territories, China and around the world. Our client owns the intellectual property rights to a world famous author.

 

6. A $110,000,000  equity raise for a 4,000,000 square foot office building purchase in the financial district of Manhattan.

 

7. A $120,000,000 real estate equity capital raise for a hotel, condominium, retail building located on Fifth Avenue, near Times Square, Manhattan.

 

8. A an equity raise of $55,000,000 for an 8 hotel acquisition with various locations throughout the US.

 

9. A debt and equity raise of $650,000,000 for the acquisition and development  of a multi-million square foot industrial building portfolio.

 

10. A $30,000,000 real estate equity capital raise for an office building conversion to hotel on West 44th Street, just off Fifth Avenue, Manhattan, New York City.

 

11. A debt and equity raise for a multi-million square foot portfolio of operating industrial buildings.

 

12. A $120,000,000 equity raise for a multi-family owner/operator the the acquisition of a series of Class "A" multi-family apartments.

 

 

 

 

 

 

Real Estate IPO’s

 

Through two of our sources, we could arrange for a real estate IPO which could be a fund set up for the purchase of real estate assets either based upon specific assets or assets defined by criterion.

 

 

                                                                   MORTGAGE AND CONSTRUCTION  FINANCING

 

EB-5 Financing Program

 

You can access  real estate financing using EB-5 Immigrant Investor Program - a non-diluting unsecured loan at 0% interest rate! This program grants green cards to foreign investors who invest in private companies to simulate the US economy and to create jobs.

The program works best on mid to large scale construction / development type projects.

 

This program is regulated by Department of Homeland Security and the Securities and Exchange Commission and I have the requisite people who can put the program together.

Here is the abbreviated version of the process:

 

To "rent" a regional center usually costs 1-2% per annum on the capital raised. The attorneys will represent the project to negotiate with the existing regional center and draft all the legal documents for renting the center. The legal fee to draft all required EB-5 officering docs under the renting circumstances can be provided after more is known about the project, location, sponsor.

 

EB-5 financing requires "road shows" to different countries. Developer shall prepare to send representatives to travel with attorneys to different countries for seminars and investors' meetings. The attorney’s marketing service fee is based upon and initial retainer retainer, traveling expenses separately incurred and a % on the capital raised.

 

To set up your own regional center, the costs would be:

 

The attorney’s legal fees would be provided upon request and would include for the I-924 petition:

·  drafting the EB-5 Business Plan

·  the Private Placement Memorandum

·  Subscription Agreement

·  Operating Agreement/Limited Partnership Agreement

·  Escrow Agreements

·  Loan Agreements

·  USCIS forms

·  Feasibility Studies 

·  LLC Formation Fees 

·  Securities Attorney Fee

·  Economist Studies

·  SEC compliance Form D Filing

·  USCIS on-going I-924A compliance

·  USCIS Request for Evidence (based on the final policy memo)

·  Research, printing, mailing and USCIS filing fee

 

The client actually would do the road show and should budget $2,000 per seminar. The attorney would set up all of the road show appointments as part of their marketing services.

 

Setting up your own regional center, could take 9-10 months before funding would be available.

 

The project could be financed with conventional bridge type financing and the EB-5 financing could be used to take out the convention financing.

 

 

Please contact Howard Jackson who will provide you with more information and costs. This could include a conference with my colleague, an attorney, who has set up successful EB-5 funds and worked on projects that raised over $1-1/2 billion capital via the EB-5 program.

 

Our financing fee would be standard for mortgage financing.

 

Conventional Mortgage and Construction Financing

 

We have a substantial number of major lenders ( both US and global) that are interested in financing large scale properties as well as mid-scale projects.

Through these national and international financing sources, we are able to procure excellent debt or construction financing on almost any type of existing or proposed project in the United States and certain areas abroad.  Interest rates, according to FED policy are going to rise, thus 2016 -2017 should be viewed with the same fundamentals as in any real estate investment with the expectation that interest rates will probably rise.

There are some mezzanine / equity funding options also available.

 

 

 

 

                                              

 

 

 

 

©®™ - Copyright by Howard Jackson - 1981-2018 - All Rights Reserved

 

Click here to go to the main page:       www.howardjacksonrealestate.com