Real estate capital
Debt and equity for real estate sponsors.
Wraith Real Estate arranges construction, bridge, permanent and mezzanine financing for developers, owner-operators and fund managers. Equity is advised on by our affiliate, Wraith Advisory.
Equity is advised on by Wraith Advisory. Wraith Real Estate is not a broker-dealer and does not offer or sell securities.
Securities are offered through Finalis Securities LLC, Member FINRA / SIPC. Wraith Capital Advisory is not a registered broker-dealer, and Finalis Securities LLC and Wraith Capital Advisory are separate, unaffiliated entities.
The capital stack
Most projects are financed with more than one kind of capital. Each layer is repaid in order and priced for its risk. We arrange the debt. Wraith Advisory advises on the equity. The two are worked on together, because the terms of each layer depend on the others.
- Sponsor equity
Paid last. Controls the business plan.
The sponsor
Common equity from a capital partner.
Wraith Advisory
Priority return, ahead of common equity.
Wraith Advisory
Secured by the ownership interests.
Wraith Real Estate
Secured by the property. Paid first.
Wraith Real Estate
Arranged by Wraith Real Estate
Commercial real estate debt
- Commercial construction loansSenior financing for ground-up development and major renovation, funded in draws against a budget.
- Commercial bridge loansShort-term financing for acquisitions, value-add business plans and properties not yet ready for permanent debt.
- Commercial permanent loansLong-term fixed or floating rate financing for stabilized properties.
- Commercial mezzanine financingSubordinate debt between the senior loan and the equity, typically secured by the ownership interests.
Loan terms depend on the property, the sponsor, the lender and market conditions, and a financing may not close.
Through Wraith Advisory
Equity
- Preferred equityEquity with a priority return, ahead of the common equity in the stack.
- Joint venture and LP equityDeal-level equity from an institutional or family office partner.
- Fund capitalCapital raising for real estate private funds and programmatic vehicles.
Equity is advised on by Wraith Advisory. Wraith Real Estate is not a broker-dealer and does not offer or sell securities.
Securities are offered through Finalis Securities LLC, Member FINRA / SIPC. Wraith Capital Advisory is not a registered broker-dealer, and Finalis Securities LLC and Wraith Capital Advisory are separate, unaffiliated entities.
Common financing situations for real estate sponsors
Ground-up development
A construction loan, with mezzanine debt where the senior loan leaves a gap, or preferred equity through Wraith Advisory.
Acquisitions
Bridge financing for a business plan, or permanent financing for a stabilized property.
Value-add and repositioning
Bridge loans that fund renovation and leasing costs as the plan is carried out.
Maturing loans
Refinancing construction or bridge debt into a permanent loan, or into a new bridge loan with more time.
Recapitalizations
New debt, or new equity through Wraith Advisory, to buy out a partner or return capital.
Funds and programs
Fund-level capital raising for sponsors, through Wraith Advisory.
Equity is advised on by Wraith Advisory. Wraith Real Estate is not a broker-dealer and does not offer or sell securities.
Securities are offered through Finalis Securities LLC, Member FINRA / SIPC. Wraith Capital Advisory is not a registered broker-dealer, and Finalis Securities LLC and Wraith Capital Advisory are separate, unaffiliated entities.
How a financing runs
- 01
The loan request
We build the request with the sponsor: the business plan, sources and uses, the budget or operating history, the pro forma and the sponsor’s financial information.
- 02
Lender selection
Lenders are chosen with the sponsor by property type, market, loan size and structure before anyone is contacted.
- 03
Quotes
Lenders receive the request under confidentiality, and those that are interested return indicative terms. We lay the quotes side by side on leverage, pricing, recourse, prepayment, reserves and covenants.
- 04
Term sheet
The sponsor selects a lender, and we negotiate the term sheet and the application.
- 05
Closing
We coordinate the appraisal and third-party reports, answer the lender’s underwriting questions and work with counsel on the loan documents through closing.
Who Wraith Real Estate arranges debt for
- Developers building for rent or for sale.
- Owner-operators acquiring, repositioning and refinancing properties.
- Real estate fund managers and family offices that invest directly.
Request financing
Send us the property, the business plan and the capital you need. We will tell you how we would approach it.