Commercial Real Estate Financing Strategies

Hey everyone,

My firm is looking to purchase and develop some land to turn into apartment buildings. We are looking at different financing strategies we can implement to maximize IRR. Does anyone have an article about various innovative financing strategies or know some that their firms have used?

Thanks so much!

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A potential financing strategy would be to be bifurcate the fee and leasehold interest - sell the fee to a 3rd party and finance your leasehold interest with a bank or debt fund. The rational is the financing market is inefficient and you get more proceeds and better relative blended pricing with bifurcation strategy vs. traditional financing methods. iStar has ground lease money and will do ground up and pre-stabilization deals(?)....

http://www.safetyincomegrowth.com/client-solutions/default.aspx

 

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