List of Life Co Lenders / Debt Funds
Prior to using the usual cadre of debt brokers (e.g. Eastdil, CBRE, JLL), I wanted to touch base with lenders on my own. I'm looking for a list for LifeCos and Debt Funds. Anyone have good resources for finding lists like these?
Can you provide some background on the deal you'd be shopping, what type of proceeds, pricing, term, etc?
A few Class-A industrial buildings. Building sizes ranging from a few hundred thousand to nearly a million square feet. Mostly single-tenant buildings but a few multi-tenant. WALT ranging from 5-15 years. All buildings 100% occupied.
In terms of what we're seeking. Hard to pin down without understanding the terms holistically. Would need to understand proceeds, rate, prepay flexibility, fees, etc. Based on today's lending market, it seems like LifeCos are a good option, but would like to speak to all lender groups (e.g. banks, lifecos, cmbs, debt funds, etc.)
Could be interested. What’s the total loan size? Vintage of buildings? Any credit? Markets?
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Just an FYI - many Life Companies will require a correspondent relationship to bring them a deal directly. Like it or not, you may need to go through a 3rd party to kiss a few of these frogs.
Assuming these are true Class A & you're not seeking the absolute last dollar, I wouldn't even bother shopping debt funds or CMBS. Private capital is back filling liquidity for executions that are too risky (primarily focused on leverage) for the conventional players. It would make no sense for you to take that exponentially more expensive option unless you need the incremental dollars to avoid a cash-in / capital call.
Thanks for the color re: corresponding relationships for LifeCos. Figured I could contact an originator / lending officer to get the convo started.
What exactly is a "corresponding relationship"? Is that essentially a debt broker who works with lifecos?
I agree re: Debt funds. We are long term holders without partners, and therefore do not need to leverage to financially engineer a certain return to hit a promote. Realistically, LifeCos and certain Regionals are probably best but, but wanted to cover all bases.
I'm not a Life Co expert, but my understanding is that correspondence relationships give us (mortgage bankers) exclusive access to certain production platforms. The relationships are established with the intent that (a) we will better conduct upfront credit screening relative to other shops & (b) it allows the lenders to operate in a lean structure where their originators are managing a pool of correspondent relationships vs trying to cultivate borrower relationships of their own. Correspondents will sometimes also service for their lenders - hence the need for this close looped relationship.
Understood that you want to cover your bases - just know that there are a ton of players in the space. I can give you a list of 120 different debt funds, but ultimately you would want to know about their lending programs too & that's the summarized IP that makes a broker valuable.
Correct me if I'm wrong, but it sounds like you're sitting on goldilocks assets & don't want to pay an exurbanite fee for what should be a layup transaction. If that's the case, I'd be happy to explore options offline that could get you access to the correspondent network without the risk of getting taken out to the woodshed.
Yes, many small to medium sized life co's work with correspondent mortgage broker shops who then get servicing rights. These are life co's that you've probably never heard of with a name like 'old second farmers insurance company of Nebraska.' The larger groups with name recognition (think voya, metlife, hancock/manulife) are open shops, just have fun getting them to return your emails or pickup your calls. And they all operate on different levels of risk, deal size, etc.
As for the closed shops, many brokerage shops have similar relationships so don't get fooled by us thirsty mortgage brokers in the comments here.
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I can understand why you might not want to use a broker but in your case I would recommend it. A broker can run a competitive process and solicit the best terms and proceeds and provide multiple viable options that you can pick from. Best of all, it doesn’t cost you anything unless you find a lender you like that fits what you’re looking for.
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This is a hysterical thread! Watching all these mortgage brokers jumping over themselves to try to get the deal!
Already had a broker go out for us that wasn't very fruitful. Looking for 60%+ LTC construction loan for a ground up entitled/GMP ready to go BTR deal in Texas. Top 10 multifamily developer is the GP and pension fund $ LP. Needs to be non recourse.
60% LTC, Non-Recourse seems pretty hard to come buy in today's market unless being offered by some sort of opportunistic debt fund. Interested to hear if you're successful in getting this.
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