What's the most innovative financing scheme you've used on a recent deal?
A: “[We] recently completed a pre-sale transaction with a national real estate buyer for a to-be-built class A garden apartment project. Concurrent to closing, we executed a [land] buy-back provision upon the construction loan closing. This saved us the cost of purchasing the land with a third-party investor.”—Greg Bonifield, partner, Woodfield Investments
A: “[For] the purchase of a 400-plus unit mid-rise in Denver, the financing involved a credit line for 80 percent of our financing needs, asking the seller to carry an interest-free note for two years on the remaining 20 percent of the debt. After one year, we replaced all initial financing with a three-year, interest-only loan.”—Jamie Thompson, financial services officer, RedPeak Properties
A: “On a recent acquisition, our team put together bridge financing [using] 12-month first and second mortgages comprising 97.5 percent of the total capitalization. This gives us flexibility to recapitalize the deal at a later date without the burden of typical acquisition time constraints.”—Derek Kahn, CFO, Lane Co.
