This is for solid yet not currently bankable existing real estate, with many property types of interest. What we are NOT interested in are agricultural based loans, mineral based loans (gas, coal, oil, etc.), houses of worship, rental housing with less than five units, or loans outside of the United States. We can be very creative in this niche.  Call for details.

Set out below are our current preferred equity parameters:

EQUITY AMOUNTS from $2,000,000 and up; may go below $2,000,000 on a case-by-case basis.

TERRITORY includes all of the US, especially where there are barriers of entry. We are not active outside of the US.

PREFERRED PROPERTY TYPES are apartments, student apartments, hotels, land and ALFs; with some interest in MHP, office, retail and self storage....can be existing or to-be-built....will consider other property types on a case-by-case basis.

REQUIRED EQUITY YIELD is a function of risk....generally for apartments the target minimum leveraged IRR is 15 to 18% pre-tax over the holding period, including preferred equity coupon yield, monthly operating cash flow splits, cash out refinance proceeds and net sales proceeds. This will be somewhat higher for other property types.

SPONSOR'S REQUIRED EQUITY is deal specific, but generally must be at least 5 to 10% of the total equity needed....never less than 5%.

HOLDING PERIOD is entirely deal specific; can be short, intermediate or long term.

DEBT from a third party lender is needed....no 100% cash investments will be considered. This can be new debt, put on simultaneously with our investment.

GUARANTEES to the extent required by the third party lender will be provided by the Sponsor, not by ACC.

STRUCTURE of cash flow priority is broadly as follows, in order of payout:

1. All operating expenses including a market based leasing & management fee, if provided by Sponsor.

2. Debt service to third party lender (including any requisite reserves).

3. A to be negotiated preferred equity yield payment to ACC, monthly; normally a minimum of 8%. If this is deferred due to cash flow shortage, it will accumulate and be paid as cash is available, prior to any of the below disbursements.

4. Return of the preferred equity invested by ACC.

5. Return of equity invested by Sponsor.

6. A to be negotiated cash flow split between Sponsor & ACC thereafter; increasingly more attractive to the Sponsor as the property performs.

7. Same split will usually apply to any cash out refinancing or net sales proceeds, but can vary from case to case.

EXPERIENCE of Sponsor is a major factor in our underwriting for Pref Equity transactions.