For two build-to-rent projects in Atlanta, we orchestrated a structured financing solution that seamlessly transitioned from construction loans to bridge funding and, ultimately, permanent financing. Our approach incorporated cost segregation to accelerate depreciation, reduce taxable income, and lower tax liability. Although CPACE and ground lease financing were not applicable, our customized structure enhanced refinancing potential and delivered superior deal economics.
The result was an optimized capital stack that allowed sponsors to achieve market rent objectives while preserving flexibility for future lease-up adjustments. This innovative financing structure exemplifies our commitment to delivering tailored capital solutions that drive project success and growth.
Deal Highlights:
➡️Seamless Transition: Moved from construction loans to bridge funding and permanent financing.
➡️Optimized Economics: Leveraged cost segregation to accelerate depreciation and reduce tax liability.
➡️Capital Flexibility: Created an optimized capital stack that enhances refinancing potential while preserving future lease-up options.
For a solar farm development, we secured a robust working line of credit that stabilized operations, ensured timely construction funding, and supported strategic land banking. In parallel, we engineered dual U.S. Infrastructure Tax Credits transactions that delivered a significant equity boost and arranged a smooth construction-to-permanent financing transition via a REIT, enhancing liquidity and reducing risk. These integrated solutions unlock hidden value and drive sustainable growth. This multifaceted approach demonstrates our expertise in leveraging both traditional and alternative funding sources, creating a compelling investment proposition for sophisticated sponsors. With these key components in place, sponsors are now actively finalizing power purchase agreement discussions, further solidifying the project's market competitiveness and long-term potential.
Deal Highlights
➡️Working Capital: Secured a robust working line of credit that stabilized operations and funded solar farm development, including strategic land banking.
➡️Equity Boost: Negotiated dual U.S. Infrastructure Tax Credits transactions to secure an equity boost and arranged construction-to-permanent financing via a REIT.
➡️Ongoing Negotiations: With key financing components in place, sponsors are actively finalizing PPA discussions to further enhance project viability.
For a beef processing plant acquisition, when initial funding fell through, we stepped in with an innovative unsecured debt solution that met critical contract deadlines and secured the purchase. The sponsors—recognized as the gold standard in U.S. beef processing, with years of production experience, aggregate top-line revenues exceeding $300MM, and EBITDA up to $15MM (with expansion projections of $30MM to $50MM annually)—demonstrate exceptional operational expertise. We are now collaborating with the USDA to convert this short-term debt into an asset-based line of credit while integrating R&D Tax Credits, WOTC, and cost segregation. This strategic approach reduces tax liabilities and bolsters working capital until traditional financing becomes attainable, showcasing our prowess in optimizing diverse funding sources for strategic project success.
Deal Highlights:
➡️Innovative Debt Solution: Met critical deadlines to secure the acquisition.
➡️USDA Partnership: Transitioning short-term debt into an asset-based line of credit.
➡️Integrated Tax Strategy: Leveraging R&D Tax Credits, WOTC, and cost segregation to reduce liabilities and bolster working capital.