Real estate debt advisory case study, what should go on a one page lender teaser?
I have an interview case study for a real estate debt advisory intern role and would appreciate a sanity check from anyone who does this for a living.
The case is a refinancing pitch. A sponsor wants roughly $35mm to refinance the construction debt on a recently completed, c. 100 room hotel style asset in central London, fully let to one operator on a long FR&I lease paying around $2.3mm a year. The sponsor is open to a whole loan or senior plus mezz. I have to produce a one page teaser to a lender, a short cover email, and the Excel behind the numbers.
So far my teaser has an executive summary with the ask, asset, lease and rent; a sponsor section (they built the asset and funded about a third of the cost with their own equity); a collateral section with the property description and lease terms (long term, no break, FR&I, CPI linked reviews with a floor and cap); a sources and uses table (new loan in, old debt out); and a metrics box showing estimated value (rent capitalised at the prime yield, net of purchaser's costs), LTV in the high 70s, loan to cost around 70%, debt yield around 6.5%, tenant rent cover around 1.8x on EBITDAR, and unexpired lease term.
I am still learning the vocabulary so apologies if any of that is misused.
What I would like to know is whether anything is missing that a lender would expect on page one, and what you would cut as noise. And more generally, what do interviewers tend to push on in this kind of case?
Thanks in advance.