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The Development Equity Partnership Program
Sterling Capital Group can provide up to 100 % of the
equity capital (between 10% – 30% of the total cost), less transactional
costs, for qualified real estate projects and developers/investors. The
equity capital is provided in the form of a participating second trust deed
with a preferred annual return on investment.
Advantages to the Developer/Investor
- The Developer/Investor substantially reduces the amount
of personal capital required to move projects forward.
- The Developer/Investor is now in the position to be
able to advance more projects with the same amount of capital.
- The Developer/Investor can achieve a significant increase
in total returns over and above the option of self funding or bringing
in traditional Joint Venture Capital investors.
- A Developer acting as the General Contractor on a project
would receive a General Contacting fee for each project funded. Multiple
projects would generate multiple fees.
- Developing multiple projects concurrently can save
construction costs in labor, materials, and overhead etc.
Advantages to the first trust deed lender
- DEPP allows financial institutions
to lend more capital into the market because quality deals
that were previously lost due to a shortage of equity can now are pursued
successfully.
- DEPP provides additional security for the first trust
deed lender, SCG, is standing behind the first trust deed lender protecting
the first trust deed loan.
- The first trust deed lender gets the benefit of an
additional independent analysis of credit and projects risks.
- The first trust deed lender can receive additional
business due to the ongoing need of SCG clients to obtain debt financing
Diversity of Developments
Diversification of developments and investment projects
is a key factor in Sterling Capital Group’s strategy going forward.
Areas of interest include
COMMERCIAL
- High quality Class A office buildings
- Multi-level car parking facilities nation wide
RETAIL
- Regional retail shopping complexes in major cities
- Retail in support of primary development
INDUSTRIAL
- Build to suit opportunities
- Warehousing and distribution facilities
RESIDENTIAL
- Multi-family structures
- Select single family developments
LAND
- Added value sales through land maps and subdivision
- Master planned communities
OTHER
- Other project or investment opportunities which fit
within the SCG criteria
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